Casino: Strong Growth in Fourth-Quarter 2011 Sales: 14.5%

Regulatory News:

Casino (Paris:CO):

Sustained organic growth¹ of 5%

0.9% sales organic growth in France

Continued double-digit organic growth in International markets, up 10.6%

For the year 2011, reported sales up 18.2%

International markets now account for 48% of Group’s sales, contributing to

an acceleration of the organic growth²: 5.7% in 2011 vs. 3.9% in 2010

Fourth Quarter 2011 Net Sales

Consolidated net sales		Q4 2010		Q4 2011		% change QoQ
		€m		€m		Reported		Organic
Continuing operations		8,304.7		9,512.2		+14.5%		+5%
France		4,819.9		4,908.6		+1.8%		+0.9%
International		3,484.8		4,603.6		+32.1%		+10.6%

Consolidated sales rose by a reported 14.5% in the fourth quarter of 2011.

Changes in the scope of consolidation had a positive impact of 11.6%, mainly reflecting the external growth in Thailand, Casino’s increased stake in GPA and the consolidation of Casas Bahia by GPA.

The currency effect was a negative 2.0% due to the depreciation of the Brazilian, Colombian and Thai currencies against the Euro.

Petrol had a 0.3% impact on the quarter. The calendar effect was slightly positive (0.6%).

Organic Sales Growth Excluding Petrol

		2010		H1 2011		Q3 2011		Q4 2011		2011
Continuing operations		+3.9%		+6.3%		+5.7%		+4.7%		+5.7%
France		+0.6%		+2.2%		+1.2%		+0.2%		+1.4%
International		+10.5%		+12.9%		+13%		+10.5%		+12.2%

The 4.7% organic sales growth excluding petrol for the fourth quarter was in the same trend as third quarter’s performance (5.7%).

Q4 2011 Sales

Organic growth excluding petrol of 0.2% in France

In the fourth quarter of 2011, organic growth excluding petrol in France came to +0.2%.

• The convenience formats enjoyed solid total sales growth, with sales up 2.3% at Monoprix, 0.5% at Franprix (on an organic basis) and 1.2% excluding petrol at Casino Supermarkets. The Superettes’ sales were down 1.1%.
• Leader Price’s same-store sales³ were almost stable (-0.1%), representing a satisfactory performance given the high basis of comparison (+5.6% in the fourth quarter of 2010).
• Géant’s same-store sales were down 2.4% excluding petrol, of which -1.8% in food and -5.8% in non-food.
• Cdiscount continued to maintain a high growth level (+13.8%). The French e-commerce leader hence confirms its growth relay role in non-food sales at the Group’s level, with an increase in cumulative sales of 2.8% (Cdiscount and Géant combined).

Double-digit organic growth in International markets (up 10.5% excluding petrol)

International operations continued to enjoy strong organic growth excluding petrol (+10.5%), despite the exceptional situation in Thailand.

• Latin America continues to post very solid growth (11.7% on an organic basis, excluding petrol), driven by a sustained progression on a same-store basis (+9.8%).
• In Asia, the floods in Thailand led to a decline in Big C’s same-store sales that was partly offset by a sharp rise in Vietnam same store sales. Overall, sales in Asia were down 0.3% on a same-store basis but were up by a strong 8.3% on an organic basis, reflecting the significant contribution of expansion.

Reported international sales were 32.1% higher, partly as a result of changes in the scope of consolidation, and accounted for 48% of the consolidated total in the fourth quarter (versus 42% in Q4 2010).

2011 Sales

2011 Sales Growth breakdown

2011		Reported		Organic		Organic excluding petrol
Group		+18.2%		+6.3%		+5.7%
France		+4.4%		+2.6%		+1.4%
International		+40.4%		+12.2%		+12.2%

With consolidated sales up 18.2% in 2011, the Group reaches its objective of higher than 10% annual growth. Organic growth excluding petrol came to 5.7%, a sharp acceleration over 3.9% in 2010.

In France, the Group’s market share in food is stable over the year, confirming the good complementarity between the various Group’s banners⁴.

Thanks to Cdiscount performances, growth in Group’s non-food sales online remained very strong.

International operations which accounted for 45% of consolidated sales in 2011 versus 38% in 2010, continued to expand at a rapid pace.

FRANCE: Q4 2011 SALES

Sales in France rose by 1.8% in the fourth quarter. Changes in scope of consolidation had a positive impact of 0.9%, corresponding accounted for 0.9% of growth, corresponding to the integration as a whole of two Franprix-Leader Price⁵ franchisees over the period. Petrol effects added 0.7%.

Organic growth excluding petrol increased by 0.2% for the period.

Sales Growth Evolution

€m		Q4 2010		Q4 2011		Organic growth excluding petrol
Net sales, France		4,819.9		4,908.6		+0.2%
Casino France		3,213.7		3,261.1		+0.6%
Géant Casino hypermarkets		1,526.1		1,522.3		-2.2%
Casino supermarkets		886.3		905.3		+1.2%
Superettes		347.1		343.1		-1.1%
Cdiscount & Other businesses		454.1		490.4		+8.8%
Franprix-Leader Price		1,077.8		1,106.7		-1.8%
Monoprix		528.5		540.7		+2.3%

Growth in Same-store Sales Excluding Petrol

		Q4 2011 same-store growth, excluding petrol
Géant Casino hypermarkets		-2.4%
Casino Supermarkets		-1.3%
Franprix		-4.6%
Leader Price		-0.1%
Monoprix		+1.5%

• Franprix-Leader Price

Franprix-Leader Price reported sales were up 2.7% in the fourth quarter, after the integration of two franchisees⁵.

Leader Price’s same-store sales were almost stable at -0.1% in the fourth quarter, a satisfactory performance considering the high basis of comparison, which reflects the effects of the marketing initiatives implemented, continuing competitive pricing, targeted promotional offers, adjustments to assortments with a focus on core SKUs and enhanced communication. The expansion, as well as the renovation program, continued with 6 stores opened during the quarter and six renovated. In all, 27 stores were opened and 67 were renovated over the year.

Leader Price’s market share was stable throughout the year in a hard discount market down by 0.3pts.

At Franprix, total sales were up 0.5% on an organic basis. The banner continued its expansion program: 33 stores were opened, raising to 67 the total number of stores opened since the beginning of the year. Same-store sales were down 4.6%, in line with prior quarters and due to Sunday afternoon closing and increased competition.

• Monoprix

Same-store sales at Monoprix rose by 1.5% excluding petrol, led by a good performance in food. The banner benefited from two promotional campaigns during the period, the "9 Days” from 5 to 16 October and the "Essential Days” from 16 to 27 November.

In the non-food segment, apparel sales were affected by a less favourable weather with higher temperatures than in the fourth quarter of 2010.

In all, Monoprix sales rose 2.3% in the fourth quarter.

The banner opened during the period 8 Monop’, 5 Naturalia and 1 Citymarché, as well as 3 Monop’station located in railway stations. Naturalia has also acquired 3 organic products stores called Serpent Vert.

The banner’s market share was stable over the year.

• Casino France

Géant

In the fourth quarter, Géant's same-store sales excluding petrol contracted by 2.4%, mainly due to non-food sales.

Food sales, which account for 70% of Géant’s sales, were down 1.8%. Stores and market areas were progressively renovated in a satisfactory way.

Géant’s market share of the food market was stable over the year.

Non-food sales were down 5.8%. Géant continued to deploy its strategy focused notably on selecting the most attractive product categories, and on the continued deployment of multi-channel distribution (pick up of Cdiscount packages weighing more than 30 kg in stores and Géant coupons distributed by Cdiscount). Furthermore, reduction in non-food selling space continued.

Cdiscount & Other businesses

In the fourth quarter, Cdiscount delivered another strong performance (+13.8%), led by good performance in electrical appliances, homeware and toys. The levers deployed from H2 (advertising space broker and marketplace) progressively contributed to the growth dynamics of the site; a ramp-up is expected for 2012.

Cdiscount confirms its role as a growth relay in non-food at the Group level with Cdiscount and Géant combined sales, up 2.8% and 2.6% over 2011.

Moreover, according to the objectives, deployment of the multi-channel distribution was stepped up from the third quarter. At year-end there were more than 1,770 pick-up desks in Petit Casino and Franprix stores for packages weighing less than 30 kg, and 215 pick-up desks for packages over 30 kg.

Total sales from the other businesses (Cdiscount, Mercialys, Casino Caféteria, Banque Casino) were up 8.8% on an organic basis in the fourth quarter.

Casino Supermarkets

Casino Supermarkets’ total sales rose by 1.2% (excluding petrol) in the fourth quarter. The contribution from expansion was significant (2.5%). Five supermarkets were opened during the quarter, bringing to 11 the total number of openings since the beginning of the year. Same-store sales for the quarter were down 1.3% (excluding petrol).

The banner’s market share was stable over the year.

Superettes

Superettes sales were down 1.1% in the fourth quarter. 86 stores were opened during the period and the Casino Shopping concept continued to be deployed and enjoyed good sales momentum. After Marseille, St. Etienne and Lyon, three more Casino Shopping stores were opened, along with 16 Casino Shop.

One of the highlights of the fourth quarter was the signature of a partnership agreement between La Poste and the Group for the opening of convenience stores alongside local post offices. The five-year agreement will enable the Group to strengthen its presence in towns with less than 12,000 inhabitants.

INTERNATIONAL MARKETS: Q4 2011 SALES

International sales increased by 32.1%.

Changes in the scope of consolidation⁶ added 26.2%, while the currency effect was a negative 4.7%.

Organic growth came to 10.6%.

International Sales Evolution by Region – Q4 2011 vs. Q4 2010

		Reported		Organic growth		Same-store
Latin America		+33.6%		+11.8%		+9.8%
Asia		+38%		+8.3%		-0.3%

In Latin America, sales were up 11.8% in the fourth quarter on an organic basis, thanks to a very strong same-store growth in Brazil as well as in Colombia.

- In Brazil, GPA’s same-store sales grew by 8.5%⁷, a performance in line with the trend established in prior quarters. Expansion continued, with twenty new stores opened in the fourth quarter.

In the food segment, GPA Food sales rose 8.7%⁶, lifted by the very strong performance of the cash & carry banner, Assaï, which repositioning of its product mix was a success, and of the supermarkets recently converted to the Extra banner. The Brazilian version of "Black Friday", the day in the United States when retailers offer promotional sales to kick off the Holiday shopping season, was an outstanding success for the Extra stores. A program to convert Extra Facil superettes into Mini Mercado Extra stores was launched, with 19 stores converted and 5 new stores opened during the quarter.

In the non-food segment, same-store sales by Globex⁸ (including Casas Bahia since 1 November 2010) were up by 8.4%⁶. The e-commerce business (Nova Pontocom) continued their strong dynamism, with sales up 31.5%⁶ thanks to the boost provided by the Black Friday campaign too.

- In Colombia, Exito continued to enjoy robust growth⁹, thanks mainly to strong performances by the Surtimax cash & carry stores. The "Special Prices Days” campaign was a success. According to the objectives, expansion focused on the convenience and discount formats, with 13 Surtimax and 9 Exito Express stores opened during the quarter, in line with objectives. 2 hypermarkets and 3 supermarkets were also opened during the period. Exito integrated for the first time its operations in Uruguay (Disco and Devoto).

In Asia, organic growth came to 8.3% in the fourth quarter, representing a very good performance in light of the exceptional situation in Thailand, which weighted on same-store growth in the region (-0.3%).

- In Thailand, Big C’s same-store sales¹⁰ were impacted by the floods that hit the country from October. As of today, all the hypermarkets have been re-opened. Only 2 Mini Big C were still in a re-opening process, which should be finalized in February. Acceleration of the Big C expansion pace, with 17 stores opened in the fourth quarter including 2 hypermarkets and shopping centres, made a significant contribution to the company’s organic sales growth.

Total sales in Thailand were sharply higher due to the integration of the Carrefour stores acquired at the beginning of the year.

- In Vietnam, the fourth quarter was characterized by a remarkable gear in expansion, opening 4 hypermarkets and shopping centres and 1 convenience store. As of end December, Vietnam had 18 hypermarkets and the same number of shopping centres. Sales growth’s pace remained very high, with the stores opened last year gradually reaching their full potential.

Same-store sales in the Indian Ocean were up 1.4% and up 2.4% on an organic basis.

*

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Next Casino Group’s communication:

2011 Results, on 28 February, before the stock market opens

Disclaimer

This press release has been prepared for informational purposes only and should not be construed as a solicitation or an offer to buy or sell securities or related financial instruments. Similarly, it does not and should not be treated as giving investment advice. It has no connection with the 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 judgments. All opinions expressed herein are subject to change without notice.

APPENDICES

Main changes in the scope of consolidation

• Consolidation of Casas Bahia by GPA, from 1 November 2010.
• Consolidation of Carrefour Thailand’s operations by Big C, from 7 January 2011.
• Full consolidation of 3 franchisees by Franprix-Leader Price from 1 February 2011.
• Deconsolidation of 1 franchisee by Franprix-Leader Price effective 1 September 2011.
• Increase in the percentage held in GPA at 43.1% as of 30 September 2011 (vs. 33.7% as of 30 September 2010).

		Fourth quarter				% change				12 months				% change
		2010 €m		2011 €m		As reported		At constant exchange rates		2010 €m		2011 €m		As reported		At constant exchange rates
FRANCE		4,819.9		4,908.6		+1.8%		+1.8%		17,956.1		18,747.7		+4.4%		+4.4%
Of which:
Franprix – Leader Price		1,077.8		1,106.7		+2.7%		+2.7%		4,025.8		4,410.0		+9.5%		+9.5%
Monoprix		528.5		540.7		+2.3%		+2.3%		1,914.3		1,973.0		+3.1%		+3.1%
Casino France		3,213.7		3,261.1		+1.5%		+1.5%		12,016.0		12,364.8		+2.9%		+2.9%
Géant Casino HM		1,526.1		1,522.3		-0.3%		-0.3%		5,515.6		5,622.8		+1.9%		+1.9%
Casino SM		886.3		905.3		+2.1%		+2.1%		3,490.1		3,618.8		+3.7%		+3.7%
Superettes		347.1		343.1		-1.1%		-1.1%		1,494.4		1,485.2		-0.6%		-0.6%
Other businesses		454.1		490.4		+8%		+8%		1,515.9		1,638.0		+8.1%		+8.1%
INTERNATIONAL		3,484.8		4,603.6		+32.1%		+36.8%		11,122.2		15,613.1		+40.4%		+41.7%
Of which:
Latin America		2,692.2		3,596.7		+33.6%		+38.9%		8,245.3		11,826.3		+43.4%		+44.5%
Asia		547.6		755.8		+38%		+41.8%		2,009.3		2,895.2		+44.1%		+47.4%
Other businesses		245.0		251.1		+2.5%		+2.4%		867.6		891.6		+2.8%		+2.7%
Sales from continuing operations		8,304.7		9,512.2		+14.5%		+16.5%		29,078.3		34,360.8		+18.2%		+18.7%

Average exchange rates		9 months 2010		9 months 2011		% chge		12 months 2010		12 months 2011		% chge
Argentina (ARS/EUR)		0.195		0.174		-10.9%		0.193		0.174		-9.7%
Uruguay (UYP/EUR)		0.038		0.037		-1.6%		0.038		0.037		-0.8%
Thailand (THB/EUR)		0.024		0.023		-0.3%		0.024		0.024		-0.8%
Vietnam (VND/EUR) (x 1000)		0.041		0.035		-15.1%		0.041		0.035		-13.4%
Colombia (COP/EUR) (x 1000)		0.397		0.390		-1.8%		0.397		0.389		-1.9%
Brazil (BRL/EUR)		0.427		0.436		+2.2%		0.428		0.430		+0.4%

Store Network

France		31 Dec 10		30 Sept 11		31 Dec 11
Géant Casino hypermarkets		125		127		127
Of which French Affiliates		6		8		8
International Affiliates		5		5		5
French Franchises		2
+ service stations		99		101		101
Casino Supermarkets		405		414		422
Of which French Franchise/Affiliates		54		49		51
International Affiliates/Franchises		27		32		32
+ service stations		160		166		170
Franprix Supermarkets		870		882		897
Of which Franchise outlets		515		373		379
Monoprix supermarkets		494		497		514
Of which Naturalia		49		50		55
Of which Franchise outlets/Affiliates		131		127		130
DIS Leader Price Of which Franchise outlets		585 294		602 247		608 271
Total Supermarkets & discount stores Of which Franchise outlets/Store		2,354 1,021		2,395 828		2,441 863
Petit Casino superettes		1,791		1,774		1,758
Of which Franchises		29		29		29
Casino Shopping superettes				3		6
Casino Shop superettes						16
Eco Services superettes		2		1		1
Of which Franchises		1
SUP Spar		928		956		956
Of which Franchises		761		770		755
SUP Vival		1,767		1,810		1,752
Of which Franchises		1,766		1,809		1,750
SUP Casitalia et C* Asia		1		1		1
MAG Franchisees		1,260		1,209		1,134
Corners, Relay, Shell, Elf, Carmag		1,260		1,209		1,134
MAG Wholesale		926		920		937
TOTAL Convenience Stores		6,675		6,674		6,561
Of which Franchises outlets/Stores		4,744		4,738		4,606
Other Affiliate stores		20		25		26
Of which French Affiliates		17		18		18
International Affiliates		3		7		8
Other businesses		287		285		295
Cafeteria		287		285		293
Cdiscount						2
TOTAL France		9,461		9,506		9,450
Hypermarkets (HM)		125		127		127
Supermarkets (SM)		1,769		1,793		1,833
Discount (DIS)		585		602		608
Superettes and other stores		6,695		6,699		6,587
Other		287		285		295

HM : hypermarkets SM: supermarkets DIS: discount SUP: Superettes MAG: stores DIV: others

LGF: franchise business lease

International		31 Dec 10		30 Sept 11		31 Dec 11
ARGENTINA		23		24		24
Libertad hypermarkets		15		15		15
Other businesses		8		9		9
URUGUAY		53		53		52
Geant hypermarkets		1		1		1
Disco supermarkets		28		28		27
Devoto supermarkets		24		24		24
BRAZIL		1,647		1,607		1,571
Extra hypermarkets		110		130		132
Päo de Açucar supermarkets		149		157		159
Sendas supermarkets		17		0		0
Extra Perto supermarkets		101		203		204
CompreBem supermarkets		113		0		0
Assai discount stores		57		59		59
Extra Facil / Mini Mercado Extra SM		68		67		72
Eletro, Ponto Frio		1,032		991		945
Of which Ponto Frio		506		454		401
Of which Casas Bahia		526		537		544
THAILAND		116		204		221
Big C hypermarkets		70		106		108
Big C supermarkets		2		11		12
Mini Big C supermarkets		15		42		51
Pure		29		45		50
VIETNAM		14		18		23
Big C hypermarkets		14		14		18
New Cho superettes				4		5
INDIAN OCEAN		50		53		53
Jumbo hypermarkets		11		11		11
Score/Jumbo supermarkets		21		22		22
Cash and Carry supermarkets		5		5		5
Spar supermarkets		7		8		8
Other		6		7		7
COLOMBIA		299		326		351
Éxito hypermarkets		73		76		80
Pomona, Carulla, Éxito supermarkets		112		128		130
Surtimax discount stores		54		65		78
Éxito Express et Carulla Express SM		22		46		54
Ley and others		38		11		9
TOTAL INTERNATIONAL		2,202		2,285		2,295
Hypermarkets (HM)		294		353		365
Supermarkets (SM)		579		586		591
Discount (DIS)		111		124		137
Superettes (SUP)		105		159		182
Other businesses		1,113		1,063		1,020

¹ Organic growth corresponds to growth based on a comparable scope of consolidation and at constant exchange rates.

² Excluding petrol.

³ Same-store sales growth corresponds to underlying growth excluding the effect of store openings and closures during the period.

⁴ Source Kantar: cumulative at end-P13, hypermarkets/supermarkets, FMCG and processed dairy products.

⁵ Refer to the appendix for details of changes in consolidation scope.

⁶ Refer to the appendix for details of changes in consolidation scope.

⁷ Data published by GPA – GPA will announce its 2011 results on 16 February 2012.

⁸ Globex includes the Ponto Frio, Casas Bahia and Nova Pontocom (e-commerce) businesses.

⁹ Exito will announce its fourth quarter sales on 24 February 2012.

¹⁰ Big C will announce its fourth quarter sales on 17 February 2012.

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