Press

France’s leading e-commerce company, Cdiscount has won over French customers with its innovative, wide-ranging product assortment and the lowest prices in the market.

Following the launch of new Cdiscount websites in Thailand, Vietnam, Colombia, Ecuador, Ivory Coast and Belgium, Cnova N.V. (part of Groupe Casino) continues its internationalization with the opening of cdiscount.sn in Senegal.

Customers will have access to more the 80 000 products available on the site, comprised of diverse and innovative offerings at the lowest prices in the market through various means of payment:

• mobile,
• cash at pick-up points,
• cash on delivery.

At launch, customers will be able to choose between home delivery and pick-up points according to their preference.

To accelerate its development in Africa, Cdiscount has established a partnership with Bolloré Africa Logistics which will benefit from their respective strengths as leaders: the expertise of Cdiscount in e-Commerce and the logistics know-how and infrastructure of Bolloré in Africa.

With the academic year now in full swing, Cdiscount is doing its part to meet the specific supply needs of university students and young professionals, providing them with a varied, expanded offering of products tailored to their needs and their budget through a selection of carefully priced essentials. In addition to these bargains, Cdiscount is running a “buy one get one free” campaign.

France’s leading e-commerce, Cdiscount has won over French customers with its innovative, wide-ranging product assortment and the lowest prices in the market.

With the academic year now in full swing, Cdiscount has decided to do its part to meet the specific supply needs of university students and young professionals, providing them with an expanded offering of on-trend products at unbeatable prices, featuring a varied, targeted selection of best-sellers:

• Packard Bell 17.3-inch laptop for €299.99
• Samsung microwave for €59.99
• Samsung 40-inch television for €329.99
• Sliding sleeper sofa for €99.99
• etc…..

From September 30 to October 7, 2014, young shoppers can not only access thousands of these carefully priced products, but also take advantage of a “buy one get one free” campaign. When customers order two (or more) participating products, they receive a coupon for the amount of the lowest-priced item. The coupon can be used toward future purchases in any product category covered by the campaign.

Customers also benefit from special website services, including a four-instalment payment option and free delivery to one of the 15,000 pick-up locations in the Cdiscount network, which is the largest of its kind in France.

France’s leading e-retailer Cdiscount has partnered with Haier to engineer its first tablet under the Cdisplay name. Haier, which seeks to become one of the five leading tablet makers in France and the rest of Europe within the next three years, has lent its technological expertise to Cdiscount on this project.

Cdisplay brings to market affordable connected products that are built to a guaranteed high-quality standard. The Cdisplay tablet will be launched on the Cdiscount website on 4 September 2014 at the unbeatable low price of €49.99, including tax.

Packed with technology, the Cdisplay tablet incorporates the latest technical innovations, including a quad core processor, a 7-inch IPS display and the latest version of the Android operating system, Android 4.4 Kit Kat. Its meticulously crafted design features an ultra-thin protective case.

Cdisplay has received Google certification, which means it can onboard all of the solutions developed by Google.

Customers can link directly to their Cdiscount account from their Cdisplay tablet to facilitate their future online purchases. In addition, Cdisplay users are notified on a priority basis of exceptional Cdiscount promotions such as flash sales and exclusive offers.

Lastly, Cdisplay owners are provided access to free e-books, applications and other digital content.

A win-win technological partnership

With this new partnership, Haier is demonstrating its technological expertise through its end-to-end management of the tablet engineering process, from manufacturing to software integration to design, and through its ability to adapt and develop customised products in response to a very specific need.

“We were looking for a partner that could support us during the strategic launch of our new overall concept based on a high-quality tablet,” said Stéphane Belloc, Purchasing Director, High Tech, Household Appliances and Private Labels for Cdiscount. “Haier is a globally recognised household appliances brand that has recently made inroads into the tablet market with reliable products of superior quality. They knew just how to meet our specifications.”

Through this new partnership, Haier is moving closer to its medium-term objective of becoming a benchmark player in the tablet market. “We are very proud to have been chosen by Cdiscount, France’s number one e-retailer, to develop its Cdisplay tablet, which is able to integrate all the website’s applications,” said René Aubertin, CEO Europe for Haier. ”More than just a product, Cdisplay represents a new way for consumers to use their tablet. That’s why we paid special attention to its design and level of quality. Our constant commitment to R&D enables us to satisfy our customers more effectively, with products that always offer more technical and marketing innovations. The new partnership agreement highlights once again our growing presence in the tablet market, which we assertively entered in May 2013.”

For more information on Cdisplay, visit :
www.cdisplay.com and www.haier.com/fr

The C le Marché marketplace has become very popular with online merchants since its launch in 2011, with some 5,000 merchant-partners posting nearly 10 million offers in 2014. In the last few months, the marketplace has deployed a very competitive fulfilment service (logistics and shipping) for its merchants.

Today, C le Marché is entering a new phase in its development focused on intensive recruitment of new online merchants and the introduction of innovative services such as immediate availability and higher quality offers from merchant-partners.

For more than three years, Cdiscount has given online merchants an opportunity to enhance their product offering on its C le Marché marketplace. With C le Marché, online merchants have access to a powerful, attractive web showcase and benefit from the site’s considerable traffic, which averages 11 million unique visitors per month.

The marketplace’s technical platform provides the selected merchants with an online interface for managing their offering autonomously. The merchants are free to set their own prices, rates and delivery terms and then to manage their customer relationship and after-sales service themselves. Customers order and pay for items on the C le Marché site, with Cdiscount ensuring secure payment processing and managing fraud risk in return for a commission on completed sales.

An innovative service: immediate availability

Now, Cdiscount is introducing immediate availability, which combines the ease of online purchasing with the speed of store pick up.

This simple, yet innovative concept involves giving local merchants the opportunity to sell items on the C le Marché marketplace even if they don’t have a website. The solution offers two powerful methods for developing sales: merchants can sell items to customers located near them with immediate availability or, for products visible to all Cdiscount users, ship nationwide, no matter where the customer is located.

Store pick up within two hours

Merchants who select immediate availability must provide their store’s address and business hours, describe pick-up procedures and indicate if all or part of their inventory is for sale.

Customers who share their geographic location with Cdiscount have access to local offers for their searched items, with the possibility of selecting store pick up to avoid delivery charges. Once the “immediate availability” order has been placed and paid for on the Cdiscount site, a text message is sent directly to the merchant. The customer then has two hours in which to pick up his or her purchase at the specified address.

The service has enjoyed rapid success. Already, nearly 40,000 immediately available items are on offer from 200 merchants in the Bordeaux region who have joined Cdiscount’s C le Marché marketplace. Merchants in Nantes also have access to the service, which has been extended to Lyon and Toulouse and will be gradually rolled out across France.

See the full press release

Taking advantage of its roots in the Bordeaux region, French e-retailing leader Cdiscount has built up considerable expertise in oenology. Cdiscount sold and shipped more than three million bottles of wine in 2013, offering customers a selection of 2,600 French and international wines. It has also become the specialist in “second wines”, with more than 200 different listings from Bordeaux’s leading châteaux. In addition, Cdiscount sells 300 award-winning wines. This high-quality selection is on display from 10 to 29 September during Cdiscount’s 10th Annual Wine Fair.

Although well-known by the general public as France’s leading e-retailer, low-price champion and identifier of new trends, Cdiscount is also a major player in online sales of wine and champagne. Based from the beginning in Bordeaux wine country, the company has forged long-term relationships of trust with the region’s prestigious winemakers. In line with its commitment to offering the “Best Products at the Best Price”, the site has developed a vast selection of “second wines” from Bordeaux’s leading châteaux so that customers can discover fine wines at affordable prices.

Thanks to other partnerships developed over the years with French and international winemakers, Cdiscount now offers 2,600 wines and champagnes, a large majority of which are tasted and graded by Cdiscount Experts before being listed for sale. As the individuals in charge of selecting wines, these specialists nurture long-term partnerships with the site’s 130 wine and champagne suppliers so that they can offer both celebrated names and more personal favourites.

Cdiscount backs its rigorous selection process with top-notch logistics expertise. From storage to packaging to delivery, the wine is handled with care, under the conditions required by a finely crafted product. Cdiscount sold and shipped more than three million bottles of wine in 2013.

A discriminating selection developed by expert wine tasters

Cdiscount’s online wine selection reflects a clear set of values promoted by a team of specialists with deep winegrowing knowledge and extensive tasting experience.

The catalogue of 2,600 wines and champagnes has been developed on the basis of rigorous quality criteria. Cdiscount’s experts visit French vineyards, take note of rising winemakers and identify the best cuvées. As professional wine tasters with degrees in oenology or winemaking and years of experience in tasting, they are collectively responsible for the site’s wine selection.

The panel of tasters rates the wines according to the same criteria. Each glass is subjected to a complete sensory analysis based on the tasters’ experience and knowledge of the vineyard, its appellations and its best years of vintage. The wine’s colour (or robe), aroma and bouquet (nose) and flavours and texture (mouthfeel) are analysed. Its balance, structure and lingering aftertaste are carefully assessed. The selected wines reflect a clear set of values and all offer excellent quality and drinking pleasure for the money.gb

Following the launch of new Cdiscount websites in Thailand, Vietnam, Colombia, Ecuador and Ivory Coast, Cnova N.V. (part of Groupe Casino) continues its internationalization with the opening of its Cdiscount.com website to internet users in Belgium.

Cdiscount.com is answering the increasing demand from Belgian internet users by providing them with the same product offerings and services as are available in France, allowing them to benefit from the “best products at the best prices”.

All the orders will be shipped from France and customers will be able to choose between home delivery and pick-up points according to their preference:

• For small product orders (less than 30 kg);
• 545 pick-up points will be available throughout Belgium;
• Or they can be delivered within 2 days via TNT;
• For heavy products (30 kg or more), home delivery will be operated by carriers selected by Cdiscount.com;
• The main international credit cards and payment systems will be accepted (Visa, MasterCard and PayPal).

Casino successfully issued a new 12-year bond of €900 million. It is the first 12-year Eurobond completed by an issuer rated BBB-.

This new bond has been significantly oversubscribed by a diversified investor base and will pay a coupon of 2.798%, the lowest coupon ever for the Group.

This operation strengthens the Group’s liquidity and extends the average maturity of Casino’s bond debt from 5.5 to 6.3 years. Proceeds will be used for General Corporate Purposes including repayments of maturing debt.

Casino is rated BBB- stable by Standard & Poor’s and Fitch Ratings.

Crédit Agricole CIB, Goldman Sachs, J.P. Morgan, Mizuho, Royal Bank of Scotland, Santander and UBS acted as joint bookrunners.

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

 “H1 2014 confirms the recovery underway at Géant in France. The robust operating performance of our convenience and supermarkets banners in France together with the excellent performance from international businesses, particularly in Brazil, enabled the Group to record a +5.8% increase in underlying net profit, Group share, at constant exchange rates in H1 2014, against a background of substantial price cuts at Leader Price.”

+13.3% ORGANIC GROWTH IN TRADING PROFIT TO €880 MILLION, AND UNDERLYING NET PROFIT, GROUP SHARE OF €176 MILLION, UP +5.8% AT CONSTANT EXCHANGE RATES 

As exchange rates have negatively impacted the translation into euros of international subsidiaries’ results, analyses of activities and operating results are presented below on an organic basis (i.e. at constant scope and exchange rates).

 Strong organic growth in activity in Q2 in line with the previous quarter

In the second quarter of 2014, the Group’s consolidated sales totalled €11.9 billion, with organic growth(1) of +6.5%. In France, organic growth in sales (excluding petrol and calendar) of -0.2% in the second quarter marked an improvement on the first quarter thanks to the business recovery at Géant. Internationally, the Group continued to post very robust organic growth (+10.9% in organic in Q2, +11% in Q1 2014). Lastly, non-food e-commerce business in France and Brazil posted growth in business volumes of +23.9% at Cdiscount and +44.1% at Nova Pontocom in Q2 2014.

 Increase in EBITDA and trading profit on an organic basis in H1 2014

In H1 2014, Group EBITDA stood at €1,353 million, up +9.1% on an organic basis, and trading profit grew by +13.3% to €880 million. The EBITDA margin increased by +17bp and the trading margin rose by +26bp.

In France, after taking into account the deconsolidation of Mercialys, EBITDA and trading profit were down moderately. At Casino, the operational efficiency plans have offset the investments in pricing. Margins remained solid at Monoprix and Franprix. Profitability at Leader Price declined under the impact of the price cuts implemented since Q4 2013.

Internationally, all operations recorded an organic increase in profitability in the first half. Trading profit for the food activities in Latin America increased by +18.4%. Latam electronics business and furniture (Viavarejo) and Asia food retail increased respectively by +34.2% and by +6%.

E-commerce generated EBITDA of €7 million in H1 2014 versus €2 million in H1 2013.

(1) Excluding petrol and calendar effect

 Net underlying profit, Group share, and net financial debt

Net finance costs for the period amounted to €311 million (vs. €309 million in H1 2013) and the income tax expense was €179 million (vs. €192 million). The share of profits of associates was €30 million (vs a loss of €2 million) and now includes Casino’s share of Mercialys results.

Net underlying profit, Group share, came to €176 million, down -8.9%, due mainly to the impact of translation into euro of the results of foreign subsidiaries. Adjusted for exchange rate fluctuations, net underlying profit, Group share, increased by +5.8%.

Net financial debt stood at €7,836 million at 30 June 2014, down by €1,020 million compared with the end of H1 2013. Given the seasonality in cash flows, debt will continue to decrease in the second half.

 Perspectives for the second half of 2014

In the second half of 2014, the Group will pursue its strategy aimed at:

– Rolling out the discount banners

– Strengthening the positioning on premium formats

– Accelerating expansion in convenience

– Becoming a leading player in non-food e-commerce.

Moreover, the Group confirms its targets for 2014:

– A return to positive organic sales growth in France

– Continued strong organic sales growth internationally

– Further trading profit growth in organic terms

– Continued improvement in the financial structure.

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 and non-recurring income tax expense/benefits.

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.

APPOINTMENTS

Jean-Jacques CHARHON – Chief Financial Officer

David MOSSÉ – General Counsel

Cnova, a company which combines the e-Commerce businesses of Cdiscount (in France, Latin America, Asia and Africa) and Nova Pontocom (in Brazil), announces the appointments, as of today, of Jean-Jacques CHARHON, as Chief Financial Officer and David MOSSÉ, as General Counsel. As part of his duties, Jean-Jacques Charhon will also be responsible for the relations with investors.

• Jean-Jacques Charhon (49 years-old), a graduate of the Université Libre of Bruxelles (Belgium), previously served as chief financial officer in various international Groups in Europe and in the United States. He began his career in 1989 at Solvay Group as Financial Controller. He then joined Quaker Oats where he had roles of increasing responsibility including Head of Finance of Spillers Petfood France (1993-1997). He then joined General Electric in the United States as Chief Financial Officer of GE Global Exchange Services (1997-2002), then Novartis in Switzerland as Chief Financial Officer of the Consumer Health division (2002-2007). He came back to General Electric in the United States as Chief Financial Officer of GE Healthcare Clinical Systems (2007-2010) and lastly Hewlett-Packard in the United States as Chief Financial Officer and then Chief Operating Officer of HP Enterprise Services (2010-2014).

• David Mossé (41 years-old), a graduate of Duke University and the New York University School of Law, has pursued his professional path entirely in the United States. He began his career in 1997 as a Corporate Associate for Cravath, Swaine & Moore LLP (USA). In 2003, he then joined Triarc Companies, Inc. (USA), a holding company of consumer businesses, as Vice President and Assistant General Counsel and in 2005, the investment management firm Trian Partners (USA) as Senior Counsel, Chief Compliance Officer and Investment Team Member. Since 2010, he held the position of General Counsel and Chief Strategy Officer of Dick’s Sporting Goods, Inc. (USA).

About Cnova 
Cnova is one of the largest global e-Commerce companies and includes the businesses of Cdiscount in France, Colombia, Thailand and Vietnam and Nova Pontocom in Brazil. Cnova offers its over 12.1 million active customers access to a wide assortment of more than 10.4 million product offerings through a combination of attractive pricing and highly differentiated delivery and payment solutions. www.cnovagroup.com

CASINO GROUP

ANALYSTS AND INVESTORS 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 
Aziza BOUSTER – Tel: +33 (0)1 53 65 24 78
Mob: +33 (0)6 08 54 28 75
abouster@groupe-casino.fr