Deutsche Bank Conference 11 JUNE 2007
CASINO IN A SNAP SHOT A 100-year old banner 2006 consolidated sales: EUR22.5 Bio A leading multiformat French food retailer A rapid internationalisation since 1996: 22% of 2006 consolidated net sales outside France in 10 countries (37% based on banner sales) Over 190,000 employees 9,200 stores worldwide covering all formats 3 complementary expertises: wholesale / retail / retail property 2
Greater banner differentiation in France International: a refocused portfolio Development of high potential businesses : real estate management Recent financial results & Outlook 3
GREATER BANNER DIFFERENTIATION IN FRANCE A leading multiformat retailer in France Through a balanced portfolio of six major banners c.13% total market share in France Strong market positions in discount and proximity 12% 28% 8% 21% 15% 16% Breakdown of sales surface in France by format (total: 3 500 000 sq. m.) 4
SUPERETTES: UNRIVALLED NATIONWIDE COVERAGE Leadership position with 5,652 stores at end-2006 Three banners combining integrated stores (Petit Casino) and franchises (Vival and Spar) Sales up 2.4% in 2006, led by an active opening strategy with more than 90,000 sq. m opened in 2006 A structurally profitable format Significant growth potential in particular in light of the aging population 5
FRANPRIX: A UNIQUE ALTERNATIVE IN THE PARIS MARKET Franprix : a powerful concept in the convenient segment Strong market shares on Paris and the Paris region 630 stores at end-2006 Casino has taken over management of Franprix in March An action plan to revitalise the banner s growth has been implemented since mid-may Enlargement of the assortment Price cuts on 300 national brand products Targeted promotion campaigns A more visible communication An assertive expansion strategy with a target of 1,000 stores 6
LEADER PRICE: A DIFFERENTIATING FORMAT N 2 on the discount format with c.25% market share Leader Price offers a differentiating format 100% private label A low cost structure retail model with limited inventory A resilient margin thanks to the dual nature of the business Appointment of a new management team in April, given the decline in sales An action plan to revitalize sales to be implemented this summer Expansion will be kept at a sustained pace 7
SUPERMARCHE CASINO: A MORE QUALITY-DRIVEN POSITIONING The SMs have sharply differentiated their competitive positioning, by: Developing services and fresh produce offering, e.g. an innovative counter for fruit and vegetables Speeding up expansion, mainly by increasing average store size to accelerate profitable growth Faster growth in supermarket sales in 2006 (+6.1%), led by sustained expansion and acceleration in same-store performance (+3% vs. - 0.2% in 2005) Market share gained 0.1 pt (source IRI) demonstrating the effectiveness of the assertive marketing drive underway since 2004 8
MONOPRIX : A UNIQUE CITYMARCHÉ CONCEPT Monoprix has successfully established its unique citymarché concept, built around: A refocus on four areas of expertise: food, apparel, personal care and household goods A clear market positioning, supported by effective, creative advertising High quality, contemporary food and non-food offerings Strong development of own brand products: Miss Helen, Bout chou, Monoprix Gourmet Strong sales growth (+4.5%) and same-store performance (+3.4%) in 2006, with an improved profitability from high level A renewed expansion dynamic, with the opening of new stores based on the citymarché model and the new concepts: Monop and Beauty Monop 9
HYPERMARKETS: DIFFERENTIATION IS UNDERWAY (1) Strengthening the Casino brand line A key component of Géant Casino pricing strategy An active innovation strategy to create competitive differentiation A deeper commitment to nutrition issues Double-digit volume growth since 2005, reaching 40% of volume in food Improved lay-out of fresh produce offer Broad product selection, available year-round High quality fresh produce Innovative merchandising Deployed in 3/4 of the hypermarkets by end-2007 and in all of them by mid-2008 10
HYPERMARKETS: DIFFERENTIATION IS UNDERWAY (2) Deploying new non-food concepts faster Designing specialised areas displaying high-demand product families (apparel, household goods, consumer electronics) Highly contemporary offering Product-enhancing merchandising Enhancing customer loyalty with dunnhumby Agreement signed in October 2006 Exclusive partnership in France An effective tool to develop an offering which meets customer expectations (price point, promotion, assortment and services) Enhancing the commercial attractiveness of the shopping sites ( Alcudia project) Through the development and modernization of shopping malls A six-year project 11
Greater banner differentiation in France International: a refocused portfolio Development of high potential businesses : real estate management Recent financial results & Outlook 12
IN 2006, THE GROUP REFOCUSED ITS INTERNATIONAL BUSINESS PORTFOLIO Disposal of operations in Poland, Taiwan and the United States Refocusing is driving faster organic growth, improved operating margin 2006 organic growth 2006 Trading Profit margin +10% +8.2% 3.3% 4.2% Incl. divested businesses(1) Excl. divested businesses The proceeds from international business disposals have been used to reduce net debt by 1.3 billion vs. estimated full-year trading profit of 42 million for 2006 Refocusing helped to lift ROCE(2) to 9.7% in 2006 (10.2% including the 500 million to be received in 2007) from 9.4% in 2005 (1) 13 Over the full year (2) ROCE = Trading Profit/average (equity + net debt) y/y-1
AN ASSET PORTFOLIO REFOCUSED ON TWO PRIORITY REGIONS: LATIN AMERICA & SOUTH EAST ASIA NETHERLANDS Revenue (100%) = 7.4bn EBITDA margin = 6.5% Revenue = 1.3bn EBITDA margin = 8.0% No. 1 No. 2 VENEZUELA No. 1 COLOMBIA No. 1 ARGENTINA THAILAND BRAZIL Co-leader URUGUAY No. 1 INDIAN OCEAN offering high organic growth potential and enabling the development of synergies 14 VIETNAM
INTEGRATION AND EXPANSION: TWO PRIORITIES IN INTERNATIONAL MARKETS Gradually integrating our subsidiaries through: Ownership: - Casino is now Exito s majority shareholder with 61.5% of the share capital of the company Management: - Doubling manager transfers between 2005 and 2006 Operating support: - Creation of a subsidiary dedicated to optimising international purchases - Roll-out of Exito s textile business model to Brazil and Venezuela - Launch of Extra Perto in Brazil based on France s Petit Casino model Driving sustained international expansion on fast-growing, profitable regions: In Brazil, with stepped up investment in expansion in 2007 In Thailand, with around four store openings per year and development of shopping malls In Vietnam, with more than 10 store openings already planned and increased resources for the expansion unit In Columbia, deepening of the Group s presence in Latin America, with the integration of Carulla Vivero within Exito 15
Greater banner differentiation in France International: a refocused portfolio Development of high potential businesses : real estate management Recent financial results & Outlook 16
THE PROPERTY PORTFOLIO: A SIGNIFICANT PORTION OF THE GROUP S ASSETS France: 5.3bn Property holdings in France, excluding Mercialys and Monoprix are estimated at 3.4bn Expert value at year-end 2006 (excluding Mercialys and Monoprix) ~ 2.6 billion Current market premium to expert value ~ 30% Casino s stake in Mercialys is valued at 1.3bn (stock price) Monoprix also holds a portfolio of city-centre properties with an estimated market value (Casino share) of around 0.6bn International: 1.7bn* The international property portfolio totals 1.7bn* Of which 600m in shopping malls The sale of the Polish portfolio attests to the value of the Group s assets At end-2006, the Group s property portfolio was estimated at 7.0bn * Expert value, based on Casino s interest in each subsidiary 17
WHICH VALUE WILL BE FURTHER ENHANCED The property division is organised around two centres of expertise: The property management unit, comprising two property companies: - Immobilière Groupe Casino (IGC), which owns the Group s store properties - Mercialys, a listed property company that operates shopping malls The property development unit, one of the Group s core areas of expertise - Specialist teams in France and abroad, tasked with developing and building new shopping malls The drive to enhance and actively leverage the Group s assets and expertise will be based on: Deployment of the Alcudia project to comb through and restructure all of the property sites in France, in order to maximize value creation of: - Stores, by increasing each site s critical mass in order to boost traffic - Shopping malls, by optimising and extending assets - New developments, by leveraging the Group s expertise Speeding up the pace of new developments, in France and abroad, alone and with partners 18
Greater banner differentiation in France International: a refocused portfolio Development of high potential businesses : real estate management Recent financial results & Outlook 19
2006 KEY FIGURES CONTINUING OPERATIONS* Net sales 22,505m vs. 20,390m in 2005 +10.4% +3.8% organic EBITDA 1,560m vs. 1,424m in 2005 +9.6% Trading Profit 1,043m vs. 967m in 2005 +7.9% Trading profit margin 4.6% vs. 4.7% in 2005 Attributable net profit 436m vs. 324m in 2005 Net debt (31/12/06) 4,390m vs. 5,444m (31/12/05) *In accordance with IFRS 5 20
CASINO MET ITS OBJECTIVES IN 2006 Accelerated organic sales growth in both France and International 10.0% 2005 2006 6.4% 3.8% 2.3% 2.6% 1.3% France International Group Higher trading profit reflecting: trading profit margin improvement in France in the second half sustained improvement in international markets throughout the year Trading profit ( m) 2005 2006 967 850 0.2%+ 852 5.0% 4.8% 3.5% Trading profit margin (%) 116 France 21 3.9% 64.5%+ 7.9%+ 1,043 4.7% 191 International Group 4.6%
CASINO MET ITS OBJECTIVES IN 2006 A strengthened financial situation Dec. 2005 Dec. 2006 Equity 5,638 5,972 Net debt including minority shareholders put options 5,444 4,390 1,031 889 3.5 x 2.6 x in millions of euros Net debt/ebitda (1) (1) Consolidated EBITDA, including discontinued operations 22
Q1 07 ORGANIC SALES GROWTH OF 3.8%, LED BY A ROBUST 11.7% GROWTH IN INTERNATIONAL MARKETS Consolidated net sales Q1 2006 Q1 2007 m m Q1 y-o-y change Reported Organic* Total continuing operations 5,360.1 5,486.4 + 2.4% + 3.8% France 4,177.1 4,245.0 + 1.6% + 1.6% International 1,183.1 1,241.5 + 4.9% + 11.7% * At constant scope of consolidation and exchange rates Good performance of France with sales up +3.4% excluding FranprixLeader Price In the current deflationary French environment, the Group is reaping the benefits of its differentiated marketing strategy, which focuses on: strengthening private label lines targeted price cuts for a list of products determined with the assistance of dunnhumby expanding and improving the fresh produce offering Robust sales growth in international markets +11.7% 23 driven by the Group s two priority regions South America +14.2% and South-East Asia +11.6%. All countries have reported increased same-store sales
2007 OBJECTIVES After a 2006 devoted to strengthening the Group financial structure, 2007 will see the deployment of our profitable growth model The following objectives have been set for 2007 : Further growth in trading profit Continued improvement in the financial structure with the aim of lowering the net debt/ebitda ratio to less than 2.5x by end-2007 24