Press

Total Group sales stood at €12.1 billion in Q2 2013, showing buoyant growth: +40.4%

• Internationally, organic growth* is still sustained (+9.7%) and the full consolidation of GPA has had a favourable impact.
• In France, organic sales* declined (-3.3%), under the impact of the price investment at Casino France, coupled with a progressive increase in traffic and volumes. Growth in e-commerce was sustained

Trading profit up sharply by +51.9% in H1 2013:

• Internationally, operations were highly profitable, especially thanks to excellent performances in Brazil
• In France, trading profit rose slightly in relation to the integration of Monoprix

Net profit from continuing operations, Group share, totalled €594m, (vs. €125m
in H1 2012, i.e. 4.8x)

Net underlying profit, Group share, rose +8.3% to €193m

Jean-Charles Naouri, Chairman and Chief Executive Officer of Casino Group, stated:

“In H1 2013, the Group increased its underlying net income group share by more than 8%. It posted sustained sales growth thanks to its profile’s transformation, strengthened by the acquisition of Monoprix, to its international subsidiaries growth and, in France, to robustness of its proximity and discount banners. In H2, the Group should benefit, in France, from the robustness of Franprix-Leader Price and Monoprix, from price cuts in hypermarkets, which should enable to resume growth in traffic and volumes and internationally from continued expansion.”

First-Half 2013 results: consolidated trading profit up +51.9% and net underlying profit, Group share, up +8.3% to €193M

The Group posted sharp growth in its first-half sales, which increased by +37%. Organic sales growth, excluding petrol and the calendar effect, came out at +2.8%, driven by continued sustained levels of same-store sales and very robust international expansion. The Group’s high-growth markets account for 61% of consolidated first-half sales.

The Group’s trading profit soared +51.9% to €969 million, driven by the full consolidation of GPA and Monoprix, in addition to the excellent progress made in Latin America. The trading margin is high and benefits from the high profitability of the Group’s international operations. The Group’s high-growth markets account for 74% of consolidated first-half trading profit.

Trading profit in France totalled €254 million, up +1.2% on the first half of 2012, including the full consolidation of Monoprix as of the second quarter of 2013.
At Casino France, cost cutting plans, which are rolled-out over the year, have strongly mitigated the impact of sales decline on trading profit. Franprix-Leader Price’s trading margin is stable and improves in organic terms thanks to cost control. Monoprix’s trading margin is increasing.

International trading profit rose very sharply by +84.8% to €715 million. In organic terms, it increased +8.2%. Brazil posted an excellent progression of its operating margin, particularly at Viavarejo. Profitability in Asia remained high, especially thanks to a solid margin from retail activities, in addition to the sound contribution from commercial galleries.

Non-recurring income (other operating income and expense) was positive at €530 million. This notably includes the revaluation of Casino’s stake in Monoprix following the Group obtaining exclusive control and the impact of
the deconsolidation of Mercialys following Casino’s loss of control.

Net finance costs amounted to €309 million. Excluding the effects associated with the scope of consolidation, financial expenses are under control.
Net profit, group share came out to €594 million. Restated for non-recurring items, net underlying profit, group share, totalled €193 million, a +8.3% rise on the first half of 2012.

At 30 June 2013, Group net financial debt totalled €8,856 million; it should decrease over the second half of the year, under the effect of free cash flow seasonality, notably related to the generation of a significant resource in working capital, enabling to reach a net financial debt/EBITDA ratio below 2x.

Second quarter 2013 sales

In the second quarter of 2013, the Group’s consolidated sales rose sharply by +40.4%, under the impact of the full consolidation of GPA and Monoprix, as well as sales growth from all of the Group’s international subsidiaries. Organic growth* stood
at +3% (+1.3% including petrol and calendar effect).The effect of changes in scope was +43.8%. Foreign-exchange rates had an impact of -4.7%, while the petrol effect was ‑0.5%. Finally, the average calendar effect (detailed on page 14) was -1.6%
in France and -0.9% internationally.

In France, organic sales excluding petrol and the calendar effect were in line with Q1 2013 despite the price cuts and the consumption environment

Sales in France rose +7.8% to €4,886 million in the second quarter of 2013, related to the impact of Monoprix’s full consolidation as of Q2 2013.

*Excluding petrol and calendar effect. Organic growth is growth at constant scope of consolidation and exchange rates.
**Excluding the impact of Banque Casino consolidated using the equity method in H1 2012

In France, second-quarter organic growth declined by -3.3% excluding petrol and the calendar effect (compared to a -3.4% drop in Q1 2013), against a backdrop where Casino continued the price-cutting policy it initiated in late 2012.

• Casino France

Sales at Géant and Casino supermarkets were impacted by price cuts initiated in late 2012, with sequential same-store improvement (excluding petrol and the calendar effect) related to improving trends in traffic and volumes.

At Géant, same-store food sales were up sequentially excluding the calendar effect (-5.9% in Q2 2013 compared to -7.7% in Q1 2013), thanks to the impact of improved traffic. Excluding the impact of price cuts, same-store food sales ex-calendar were almost flat in the second quarter. The new price positioning is very competitive.

Casino supermarkets, where price indices are improving*, saw a progressive inflection in volumes, driven by the private label and customer traffic following the price cuts. The banner is also continuing its operational efficiency action plans aimed at increasing its appeal.

Superettes are stepping up the roll-out of the Casino Shop and Shopping formats, notably with the successful conversion of 37 stores in Marseille and more openings in new sales outlets (train stations, airports, motorways, etc.). The banner is also confirming its leading position in supplying food to service stations, supplying more than 1,100 TOTAL stations. The new customer loyalty programme is showing good results. The goal is to roll out the loyalty card to the entire store network on 1 October. The banner continued to streamline the store network.

Business volume at Cdiscount rose substantially by +16.5%. Its own sales rose (+9.6%) and the marketplace already represents 13% of the site’s total business volume as of the end of June. Furthermore, over 10% of the site’s sales were generated via mobile devices as of the end of June.

* Independent panelist

• Franprix – Leader Price

Franprix-Leader Price total sales posted an increase of +3.1% due to the continued expansion of the network and scope effects.

Leader Price posted a +9.4% increase in its total sales, related to the integration of the businesses of several master franchises (81 new stores). The banner is continuing to strengthen its competitiveness and to improve the quality of its fresh product channels, as well as its price image.

Franprix is continuing to strengthen the appeal of its product range based on an increase in the number of Leader-Price private-label products under €1 (superior to 500 products) and on partnerships with local producers.

• Monoprix

Monoprix’s organic sales excluding petrol and the calendar effect posted a good performance, with a sequential increase compared to Q1 2013, driven by the improvement in same-store sales and by the sustained expansion of all of its formats. Food sales recorded a good progression. The banner is also benefiting from the success of its commercial repositioning and its new visual identity. Monoprix is continuing its expansion on all formats, particularly at new sales outlets (train stations, motorways). The banner will accelerate its growth in e-commerce.

Internationally, sustained organic growth continued on all markets, which accelerated sequentially (+9.7%* vs. +8.3%* in Q1 2013)

International subsidiaries posted another quarter of strong organic growth at +9.7% excluding petrol and the calendar effect. Total international sales increased by +76.6% to €7,199 million, particularly due to the full consolidation of GPA as of the second half of 2012, despite the negative foreign-exchange effect of -10%, primarily related to the real’s depreciation.
Total international sales accounted for 60% of the Group’s net sales.

Latin American same-store sales grew by +6.7%, excluding petrol and the calendar effect, a sequential progress from Q1 2013 (+5.4%), particularly reflected by GPA’s sustained performance in Brazil. Organic growth was boosted by continued rapid expansion in Brazil and Colombia. In all, sales doubled, primarily under the impact
of the full consolidation of GPA.

• GPA in Brazil

In Brazil, GPA posted same-store sales up +10.1%, excluding petrol and the calendar effect.

In food, GPA Food’s same-store net sales rose sharply by +8.4%* (+5.5%* in Q1 2013). Sales were driven by excellent performances from Assaí cash & carry
and Minimercado convenience formats, with redefined concepts. Expansion
was buoyant over the second quarter with the opening of 23 Minimercado Extra stores, three Assaí stores and the opening of the Americas commercial gallery (12,500 m2) in Rio.

In non-food, Viavarejo’s same-store sales posted highly sustained growth of +12% (compared to +7.3% in Q1 2013). E-commerce growth has been very strong (+24.1%), driven by changes to price strategy and product categories rolled out, reinforced services and marketplace launch: Nova.com now represents 16% of Viavarejo sales. Retail operations performed well.

* Excluding petrol and the calendar effect – as a reminder, GPA releases gross sales including calendar effect 

• Exito Group

Exito’s organic sales growth excluding petrol and the calendar effect was +3.2%, driven by expansion and Uruguay’s excellent performances. Sales initiatives (Megaprima) posted a solid performance against a backdrop of macroeconomic slowdown. The banner confirmed its leading market position in Colombia and Uruguay, and continued its expansion focused on proximity and on the Surtimax discount format, which is continuing to gain market share. Ten stores were opened in Colombia in Q2 2013, including four Surtimax and three Exito Express stores.
In Asia, same-store growth excluding calendar effect totalled +2.2%. Organic growth in sales excluding calendar effect maintained a high level of +9.9%. Total sales grew +11.9%.

• Big C Thailand

Big C posted organic sales growth excluding the calendar effect of +8.9%.
Same-store growth was +3% in Q2, greater than Q1 (+2.4%), related to leading price positioning, the great success of its retail operations and the development of its loyalty card.Expansion on small formats (36 Mini Big C and 15 Pure stores opened) was highly sustained. Income from commercial galleries adjacent to hypermarkets remains very sustained.

• Big C Vietnam

Big C Vietnam posted very strong organic sales growth. The banner continued its expansion, opening 2 hypermarkets and 2 adjacent commercial galleries, and confirmed its leadership in price indices and price image.

Perspectives for the second half of 2013

The Group is maintaining its 2013 targets:

• Strong growth in reported sales
• Organic sales and organic trading profit growth
• Maintaining a solid financial structure with a net financial debt/EBITDA ratio below 2x

ANALYST AND INVESTOR CONTACTS
Régine GAGGIOLI – Tel:+33 (0)1 53 65 64 17
rgaggioli@groupe-casino.fr
or
+33 (0)1 53 65 64 18
IR_Casino@groupe-casino.fr

GROUP EXTERNAL COMMUNICATION DEPARTMENT
PRESS CONTACTS
Aziza BOUSTER
Tel: +33 (0)1 53 65 24 78
Mob: +33 (0)6 08 54 28 75
abouster@groupe-casino.fr

IMAGE 7
Grégoire LUCAS
Tel: +33 (0)6 71 60 02 02
glucas@image7.fr

The first-half 2013 consolidated financial statements drawn up by the Board of Directors on 24 July 2013 have been reviewed by the Statutory Auditors.

Disclaimer

This press release was prepared solely for informational purposes and should not be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. Similarly, it does not and should not be treated as giving investment advice. It has no connection with the specific investment objectives, financial situation or needs of any receiver. No representation or warranty, express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained in this document. It should not be regarded by recipients as a substitute for the exercise of their own judgement. Any opinions expressed herein are subject to change without notice.

Appendices

Main changes in the scope of consolidation

• Full consolidation of GPA since 2 July 2012. GPA was proportionately consolidated at 40.3201% as of 30 June 2012.
• Full consolidation of companies owning 21 stores into Franprix Leaderprice
  as of July 2012.
• Full consolidation of BARAT into Franprix-Leaderprice from 8 March 2012.
• Full consolidation of HDRIV (RIVIERE) into Franprix Leaderprice from 1 December 2012.
• Full consolidation of DSO and CAFIGE into Franprix Leaderprice from 1 February 2013.
• Full consolidation of PFD (FABRE) into Franprix Leaderprice from 31 December 2012.
• Full consolidation of MONOPRIX since 5 April 2013.
• Deconsolidation of Mercialys on 21 June 2013, the date of the Annual General Meeting during which Casino’s loss of control was noted. As of this date, results have been accounted for using the equity method.

Net underlying profit

Net underlying profit corresponds to net 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 annual consolidated financial statements), non-recurring financial items

Non-recurring financial items include fair value adjustments to certain financial instruments at fair value 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 net 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.

Further to the approval of the French Competition Authority to take exclusive control of Monoprix Group, Casino finalized the acquisition of the remaining 50% of Monoprix held by a subsidiary of Crédit Agricole Corporate and Investment Bank through a temporary holding arrangement.

The price of € 1,175 Million was paid at the implementation of the temporary holding arrangement on April 5th, 2013. Monoprix is consequently fully consolidated by Casino from the 2nd quarter.

ANALYST AND INVESTOR CONTACTS
Régine GAGGIOLI – Tel: +33 (0)1 53 65 64 17
rgaggioli@groupe-casino.fr
or
+33 (0)1 53 65 64 18
IR_Casino@groupe-casino.fr

GROUP EXTERNAL COMMUNICATION DEPARTMENT 
PRESS CONTACTS
Aziza BOUSTER
Tel: +33 (0)1 53 65 24 78
Mob: +33 (0)6 08 54 28 75
abouster@groupe-casino.fr

In 2007, Casino Group solicited a test to assess the influence of the recruitment criteria that it then had in place. The first results revealed differences in the way candidates were treated, depending on their hypothetical origins. The Group therefore put in place an action plan to reduce the risk of discrimination when hiring, and subsequently obtained Frances’s Diversity Label in 2009.

Four years later, Casino Group asked ISM Corum to again measure and assess its recruitment practices through a second solicited test, the specifications of which were very similar to that of 2007.

The new test showed that the risks of discrimination when hiring had fallen since 2007.

The results of the second testing exercise carried out by ISM Corum, summarised below, showed that significant progress had been made between 2007 and 2011.

The results of the second test were as follows:

• For overall new hires, the difference in treatment of candidates seen in 2007 was down 19% in 2011, which ISM Corum described as a significant improvement in recruitment practices
• The reduction in different treatment of candidates was even greater for employees hired to work in hypermarkets (down 38%), or when two CVs showed a beginner level (down 28%), or at “large” entities (down 47%), or at entities with long-standing employees (down 36%)
• Lastly, as in 2007, for management positions, there was no significant difference in the treatment of candidates on the basis of their origins.

Casino Group is committed to continue and strengthen its actions to combat discrimination.

Casino Group has been committed since 1993 to combat all forms of exclusion and discrimination, and implements a diversity promotion policy that aims to encourage the recruitment of people from varied backgrounds and promote job equality and opportunities.

Casino Group was the first retail company to obtain France’s Diversity Label in 2009. The label was renewed in April 2012 for four years.

As part of its policy of combating all forms of discrimination, Casino Group commits to:

• Raise awareness among its employees, through its network of 56 diversity correspondents

◦ In 2010–2011, more than 1,400 people received training in how to prevent discrimination
◦ 454 supervisory and management staff were made aware of disability issues through the Franchir le Cap du Handicap (See Beyond the Handicap) programme.

• Recruit in areas that form part of France’s national urban policy for disadvantaged neighbourhoods

◦ In 2012, 850 people, 500 interns and 150 young work-study trainees will be hired by the Group under the National Corporate Commitment for jobs in priority neighbourhoods, signed on 27 February 2012
◦ In four years, the Group has hired 4,440 people, offered 2,547 training courses, and concluded 760 work-study contracts in neighbourhoods listed in the national urban policy.

• Make more widespread use of the simulation recruitment method, in close partnership with the Pôle Emploi job centres. This guarantees that candidates are selected based on the skills they show in dealing with simulated situations

◦ Since 2008, 2,508 people have been hired using this method.

• Pursue its efforts to diversify recruitment by putting in place partnerships

◦ For example, the convention signed with Acsé, the national agency for social cohesion and equal opportunity, in April 2012 to hire 500 apprentices at Casino
◦ Another example is the in-house Charter for “Service Civique” (Volunteer Civic Service) signed in March 2011.

• Carry out audits of establishments using an internal assessment tool that checks that the Diversity Label guidelines are being applied

◦ More than 200 audits have been carried out since 1 January 2012 by the Diversity Correspondents.

• Take its approach a step further by combating other forms of discrimination, in particular those relating to religious beliefs and sexual orientation

◦ A Guide to Religious Diversity was distributed in 2011 and a review on discrimination on the basis of sexual orientation is currently under way.

A new testing procedure will be carried out in three years’ time to analyse the results of the measures being taken.

For Yves Desjacques, director of human resources of Casino Group, “This second solicited testing exercise has shown the progress we have made in reducing the risk of discrimination on the basis of origins in our recruitment practices. The momentum created by the Diversity Label obtained in 2009 enabled us to boost our action plans and policies in favour of diversity. However, we must remain vigilant and continue to hammer home the idea that hiring is based on skills and skills alone.”

* The discrimination tests involve sending in two fictitious candidatures for the same job. Both candidates have the same skills and professional experience and differ only in terms of their origins. Any eventual influence of the candidates’ origins on the recruiter’s choices can then be measured.

Press contacts: 


CASINO GROUP
Frédéric Croccel – Tel. +33 (0)1 53 65 24 39 – fcroccel@groupe-casino.fr

IMAGE 7
Grégoire Lucas – Tel.: +33 (0)1 53 70 74 94 – glucas@image7.fr

Casino has announced today the signing of a 5-year confirmed credit facility for an amount of USD 1,000M (approx. EUR 770M) with a group of 10 international banks: JPMorgan and RBS (coordinating banks), Bank of America Merrill Lynch, Bank of Tokyo-Mitsubishi, Barclays, Citi, Credit Suisse, Deutsche Bank, Goldman Sachs and Mizuho Bank.

This credit line refinances the existing 3-year USD 900M facility signed in August 2011. The increase in size and the maturity extension to 5 years strengthen the group’s liquidity and extend the average maturity of Casino’s confirmed lines from 1.8 years to 3 years.

This transaction gives the Group access to competitive financial resources with large international banks.

ANALYST AND INVESTOR CONTACTS 

Régine GAGGIOLI – Tel: +33 (0)1 53 65 64 17

rgaggioli@groupe-casino.fr

or

+33 (0)1 53 65 64 18

IR_Casino@groupe-casino.fr

The executive will be the representative of the company in the country

Casino Group announces the hiring of Mr. Iabrudi to take the position as director and representative of the company in Brazil. In his position, Mr. Iabrudi will lead the institutional interaction between Casino Group and all its stakeholders.

With the hiring of a highly experienced executive such as Mr. Iabrudi, Casino Group reaffirms its commitment to Brazil and its local presence. It will allow Casino Group to further engage with the Brazilian business community and with public regulators, as well it will strengthen the relationship, the interaction and the interchange with Grupo Pão de Açúcar management team.

“The Brazilian market is a key driver for the present success and for the future of Casino Group. The arrival of Mr. Iabrudi reflects our commitment to reinforce our presence as the major local player and our willingness to strengthen our bonds with each and every important stakeholder in Brazil”, says Jean-Charles Naouri, Chairman of the Board and CEO of Casino Group.

Prior to accepting the invitation to join Casino Group in Brazil, Mr. Iabrudi has acted as Chairman of the Board of Directors of Lupatech, Contax and Telemar Operadora and as Chief Executive Officer in many important companies such as Magnesita, Telemar and Ferrovia Centro Atlântica.

“Casino Group, through Grupo Pão de Açúcar, is a leading local player in the retail industry, and Brazil is a critical market for our growth prospects. The creation of a local structure to dialogue on a regular basis with local GPA management team and all stakeholders was a natural step to take”, says Mr. Iabrudi.

“Mr. Iabrudi is a major asset to our team. He will also strengthen by his presence Casino Group support to the outstanding team lead by Enéas Pestana”, says Arnaud Strasser, Casino Group’ International Director and Vice Chairman of the Board of GPA.

ANALYST AND INVESTOR CONTACTS

Régine GAGGIOLI

or

The Casino Group announces that it has received green light from the French Antitrust Authority for the takeover of 38 convenience stores based in southeast France from the Norma Group, subject to the sale of the targeted store based in Charlieu (42).

The operation should come into force within the next weeks.

ANALYST AND INVESTOR CONTACTS 
Régine GAGGIOLI – Tel : +33 (0)1 53 65 64 17
rgaggioli@groupe-casino.fr

or

+33 (0)1 53 65 64 18
IR_Casino@groupe-casino.fr

Jean-Charles Naouri, the Board of Directors and all Casino group’s employees are deeply saddened to learn of the death today of the Group’s honorary Chairman, Antoine Guichard.

The grandson of Casino’s founder, Geoffroy Guichard, Antoine Guichard was born on 21 October 1926 and devoted his entire working life to the company, which he joined in 1950.

Mr. Guichard was at the helm of the Group for four decades, guided by an inspired entrepreneurial vision and the continuous desire to ensure the company’s growth.

With unfailing determination he modernised the company while opening it up internationally.

In 1992 Mr. Guichard and Jean-Charles Naouri brought Casino and Rallye closer together in order to preserve the company’s independence and accelerate its growth.

Since 2005, when Jean-Charles Naouri became the Group’s Chairman and CEO, Mr. Guichard, by then honorary Chairman, had shown ceaseless devotion to the company and given its Chairman precious advice drawn from his exceptional experience.

Commenting, Mr. Naouri said: “The death of Antoine Guichard is an immense loss for Casino, and I have lost a friend. As soon as we met in 1992, a deep professional and intellectual relationship developed between us. From that moment on, Antoine Guichard was always close to the decisions I had to take for the Group’s development. His wise advice, his great humanity and his friendship will be irreplaceable.”

Mr. Naouri, the Board of Directors and all the Group’s employees express their deepest sympathy to the Guichard family.

Contact:
Casino Group
External Communication Department
Aziza Bouster – 01 53 65 24 78 – 06 08 54 28 75 abouster@groupe-casino.fr

Casino submitted today a counter-claim against Abilio Dos Santos Diniz in an existing arbitration procedure.

Casino seeks among other things a declaration that Mr. Diniz’s election as Chairman of the Board of Brasil Foods S.A. (“BRF”), one of CBD’s largest suppliers, without resigning as Chairman of the CBD Board, conflicts with CBD’s interests in violation of Brazilian law and the shareholders’ agreements between the parties. Casino is also requesting confirmation that Casino may take steps to protect CBD’s interests in conformity with the shareholders’ agreement, without prejudice to any measure that may be taken by CBD in the meantime.

Casino’s decision to bring the matter to arbitration, as provided under the agreements with Mr. Diniz, results from Mr. Diniz’s refusal to resign from CBD’s Board despite repeated requests that he recognize the clear and permanent conflict resulting from his decision to serve as Chairman of both CBD and BRF.
Casino, CBD’s controlling and largest shareholder, intends to take all appropriate measures to protect CBD, its management, shareholders and other stakeholders from the conflict of interest created by Mr. Diniz.

ANALYST AND INVESTOR CONTACTS 
Régine GAGGIOLI – Tel: +33 (0)1 53 65 64 17
rgaggioli@groupe-casino.fr
or
+33 (0)1 53 65 64 18
IR_Casino@groupe-casino.fr

GROUP EXTERNAL COMMUNICATION DEPARTMENT
PRESS CONTACTS
Aziza BOUSTER
Tel: +33 (0)1 53 65 24 78
Mob: +33 (0)6 08 54 28 75
abouster@groupe-casino.fr

IMAGE 7
Grégoire LUCAS
Tel : +33 (0)6 71 60 02 02
glucas@image7.fr