Press

Good morning, Ladies & Gentlemen

In the context of the Credit Watch announced by S&P last Friday, we have received a number of questions from investors and we would like to take the opportunity of this call to answer them in a transparent and efficient way.

This communication will answer 11 meaningful questions that we have received.
There will be no Q&A session afterwards.

The first question reads as follows:

1) What is a Credit Watch Negative?

• A Credit Watch is a formal rating review process, which aims to be concluded within 90 days
• During this process, Casino will actively engage with S&P, as we have always done, to discuss in full transparency the Group’s strategy, its confidence on its business prospects and its deleveraging plan
• At the end of the Credit Watch period, our credit rating could be either maintained or lowered
• At this stage, Casino’s S&P credit rating is unchanged at BBB

The second question reads as follows:

2) What has triggered the Credit Watch in your view?

• In our view, the Credit Watch has been triggered by the following recent developments that may have an impact on Casino’s credit profile
  • S&P’s Credit Watch review occurred after the publication of our Q4 2015 sales, in a context of rising concerns over the macroeconomic situation in emerging markets and the recession in Brazil
  • Casino also announced last week the launch of the sale process for its operations in Thailand after having received strong indications of interest
• Independently from short-term market volatility, S&P’s credit rating generally relies on the review of a company’s Business Risk and Financial Risk profile, factoring long-term strategic drivers and financial trends

The third question reads as follows:

3) Do you share S&P’s concerns on Brazil?

• As a reminder, S&P downgraded Brazil’s sovereign credit rating to sub-Investment Grade on 9 September 2015
• As we pointed out during our recent Q4 2015 sales update, our Brazilian operations continue to deliver a good performance in food retail, with market share gains in cash & carry, supermarkets and convenience stores; we are confident in GPA’s ability to deliver a good performance in 2016
• Regarding non-food activities, our sales have declined in the context of soft discretionary spending by Brazilian households. Nevertheless, we succeeded in limiting the decline in sales of Via Varejo in Q4 2015 compared to previous quarters, thanks to targeted action plans aimed at finding a better price positioning, particularly through more effective promotions
• As in 2015, our priority for 2016 is to maintain a positive operating FCF for all our Brazilian activities

Read the full press release

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In the context of challenging macroeconomic conditions in emerging markets and Brazil’s current recession, Standard & Poor’s wishes to update its assessment of Casino’s credit. As a result, the agency has placed the Group’s BBB- credit rating under CreditWatch Negative on 15 January 2016. Standard & Poor’s will soon conduct, in collaboration with Casino’s management, a review of the Group’s credit rating.

Standard & Poor’s and FitchRatings had previously confirmed Casino’s BBB-/Stable Outlook rating in mid-December 2015.

Furthermore, Casino launched in late 2015 a disposal plan, initially of 2 billion euros, which was increased to approximately 4 billion euros with the planned sale of its Big C subsidiary listed in Thailand, following indications of interest from potential buyers.

The Group is committed to its “Investment Grade” status. The expected improvement in its operating performance in France in 2016 and the scale of the initiated divestment program are important elements that will strengthen its financial structure.

Independently of the execution of its disposal plan, Casino enjoys a strong liquidity position enabling it to meet all its debt repayments in coming years

CP – VA – 18 01 2016 – S&P

A replay service is available two hours after the call by dialing: +33 1 72 00 15 00 followed by the PIN code : 298677#

In the context of the ongoing process for the sale of its operations in Vietnam, Casino Group has received expressions of interest for its publicly listed subsidiary Big C in Thailand. The Group is taking steps towards the sale of this asset, which will be implemented in the best interest of the company and its shareholders.

In France, sales growth of +2.7% on an organic basis and +1.4% on a same-store basis, and an increase in customers of +1.9%

– Géant: significant growth of +3.0%(1) (same-store and organic) and continued gain in market share of +0.1 pt

– Leader Price: increase in growth of +7.5% on an organic basis and +3.0% on a same-store basis and gain of +0.1 pt in market share

– Monoprix: organic growth remained at a satisfactory level of +2.8%

– Convenience: affirmation of good performance with same-store sales up +6.1%

Internationally,

– In Latin America:

• Sustained growth in food sales of +5.7% on an organic basis; GPA Food business in organic
• Via Varejo had a more moderate decrease in sales than in previous quarters

– In Asia, gradual improvement in sales during the quarter and continued dynamic expansion

E-commerce: GMV increase of +2.1% at constant exchange rates

Over the full year 2015, the Group’s annual sales totalled €46.1 billion, in organic growth of +0.3%. In France, the Group’s recovery resulted in a sales’ increase and market launch of new concepts, offers and innovative services. growth of +5.3%, and good performance in the other Latin American countries.

A replay service will be available two hours after the call by dialing: +33 1 72 00 15 00 – Pin code: 29 84 09#

Paris, 21 December 2015. Casino Group affirms the strength of its business model, strategic plans and financial structure On December 15th, 2015, Casino Group announced a plan to strengthen its balance sheet and enhance its financial flexibility with a deleveraging plan of more than €2bn through real estate transactions and disposal of non-core assets.

On December 17th, after having acquired significant short positions on Casino, Muddy Waters Capital issued a report questioning Casino Group’s strategy, financial strength and long term value.

Muddy Waters Capital’s report contains a number of false and misleading allegations, intended to negatively impact the trading prices of Casino’s stock and debt, for the benefit of the report’s author who, in his own words, should be assumed to have “a short position in all stocks (…) and bonds covered [in the report], and therefore stands to realize significant gains in the event that the price of either declines.”

Casino has become aware, through a press agency wire, of a report issued by Muddy Waters Capital on December 16, 2015, with the obvious intent to harm Casino, its employees and its shareholders.

This accusatory report contains grossly erroneous allegations that the Group will answer in detail.

In light of this dissemination of misleading information, Casino Group has filed a claim with the Autorité des Marchés Financiers and reserves the possibility to exercise its rights before national courts, including criminal courts.

Casino Group decides to strengthen its financial flexibility with a deleveraging plan in 2016 of more than 2 billion of euros, mainly through real estate transactions and disposal of non-core assets.

One of this plan’s components consists in externalizing the value of the Group’s real estate portfolio through the participation of investors to its real estate activities in Thailand and Colombia.

In Thailand, Big C owns almost 800,000 sqm of GLA in its shopping malls located in prime areas all across the country.
In Colombia, Éxito’s real estate activity includes more than 300,000 sqm of GLA (excluding hypermarkets).

Those transactions will create value for all shareholders and will enable both companies to pursue their development on their respective markets where they already own leading positions. Big C Thailand and Éxito will continue to fully consolidate their real estate activities.

The diposals of non-core assets include in particular the project to sell the Group’s operations in Vietnam.

Casino Group will thus continue to focus on its growth strategy in its key markets in France, Latam and Asia around buoyant assets. Combined with the expected progression of free cash flow after dividends* in France, this deleveraging program will contribute to significantly improve its financial structure.

Creation of ICDC Services joint venture The Casino and DIA Groups have decided to join forces internationally to boost their competitiveness relative to major suppliers of national brand food products. The partners will be offering them access to a unique portfolio of global services (e.g., data sharing, country development assistance, etc.), while combining their expertise and the synergies that exist between their geographic locations and store In addition, the partners have agreed to coordinate purchasing negotiations for their private-label brands in Europe, with the aim of ultimately pooling around 50% of volumes. One of Europe’s largest private-label platforms is thus being created, to open up additional markets to existing suppliers and also improve the product offering available to consumers.

The alliance will take effect, subject to the approval of the relevant competition authorities (where needed), starting with the 2016 round of purchasing negotiations, via a new joint venture, ICDC Services. It will be created in addition to the two Groups’ existing purchasing partnership agreements, which will remain unchanged.

Accelerated growth in sales in France

Increase in food sales in Latin America

• In France, a significant improvement in all banners, with all now recording higher sales and customers: sales at +2.6% on an organic basis and +2.4% on a same-store basis. Customers up +3.7%.
  • Géant, growth of +3.9% (same-store and organic) with gain of market share of 0.1pt. Customers up +5.0%.
  • Leader Price, growth of +3.1% (on an organic basis) and +2.3% (on a same-store basis) with gain of market share of 0.2pt. Customers up +9.2%.
  • Monoprix, sustained growth of +4.6% (on an organic basis) and +2.2% (on a same-store basis). Customers up +1.1%.

• Internationally:
  • In Latin America:
    • Food sales rose +5.2% on an organic basis and +2.4% on a same-store basis; solid performance for GPA Food (+6.3% on an organic basis) despite the economic slowdown.
    • Via Varejo’s sales still impacted by the sharp decline in consumption in Brazil.
  • In Asia, sales down under the impact of the events in Thailand in August; sales volumes controlled.

• E-commerce : GMV increase of +17.6% at constant exchange rates.