PRESENTATION OF Q1 2020 & 2019 ANNUAL RESULTS 1 2019 - PowerPoint PPT Presentation

PRESENTATION OF Q1 2020 & 2019 ANNUAL RESULTS

1 2019 HIGHLIGHTS ➢ Store Openings ➢ Bond debt SUMMARY ➢ ESG Commitments ➢ Opening of the Agadir F&V platform 2 FINANCIAL RESULTS ➢ Consolidated accounts Q1 2020 ➢ Consolidated accounts 2019 ➢ Balance sheet indicators 2019 2020 PERSPECTIVES 3 ➢ Business prospects

1 REVIEW OF SIGNIFICANT EVENTS 2019 ➢ Openings ➢ Bond debt ➢ SGE Commitments ➢ Opening of the Agadir’s F&V platform.

OPENINGS

OPENINGS FOR FISCAL YEAR 2019 SUMMARY TABLE Summary Supermarkets Hypermarkets Hyper Cash Total Group 73 8 11 92 Number of stores on Dec. 2018 83,034 44,800 59,564 187,398 Sales in sqm. 44% 24% 32% 100% In % of Group total 12 1 13 Openings 7,666 6,200 13,866 Sales area opened in sqm. 1 1 Closings 500 500 Sales area closed in sqm. 84 9 11 104 Number of stores on Dec. 2019 90,200 51,000 59,564 200,764 Sales area in sqm. 45% 25% 30% 100% In % of Group total Comments ▪ Opening of 12 Carrefour Market and 1 Hypermarket "Dar Bouazza" in Casablanca. ▪ 13,866 sqm. opened in 2019 (including 1,700 sqm. of additional sales area for the "Targa" Marrakesh hypermarket) ▪ Closing of the Carrefour Market Casablanca Bethune store

A NETWORK COVERING 26 CITIES

BOND ISSUANCE

BOND ISSUANCE CHARACTERISTICS AND OBJECTIVES OF THE OPERATION Operation Amount Terms and conditions of reimbursement 750 MMAD 50% in-fine over 5 years 50% amortized over 7 years Operation’s Objectives Going rate Average Interest Rate of 3.4% • Financing the development plan • Taking advantage of financial leverage • Debt restructuring ▪ The loan was subscribed by 49 subscribers of different categories (credit institutions, insurance companies, pension funds, financial companies and CDG) with a subscription rate of 7.4x . ▪ Only Type I investors (former holders of 2014 bonds) were served.

ESG COMMITMENTS

ESG AT THE CENTER OF OUR ACTIVITY ➢ Our Group aims to become the leading SGE player in the retail industry in Morocco. Our policy on social responsibility is based on five pillars: ➢ Client Focus ➢ Development of Human Capital, ➢ Social Development, ➢ Environment protection, ➢ Governance and Business Ethics,

OUR ENVIRONMENTAL FOOTPRINT OUR ENVIRONMENTAL INITIATIVES Waste management and recycling Solar Panels World Clean Up Day ➢ Extensive beach cleaning operation conducted ➢ Label'Vie Group is planning the widespread ➢ As part of the diversification of energy supply in 2019 in partnership with the Mohammed VI installation of waste management devices sources, the Group has undertaken an initiative to Foundation for the Preservation of the such as compactors . cover stores with a solar panel roof that allows Environment. near self-sufficient energy. ➢ In 2019, 6,700 tons of waste were collected ➢ The operation took place in 4 beaches in ➢ The experiment, carried out at the Atacadao and reused. Morocco (Salé, Casablanca, Nador and Tangier) Meknes site and which required more than 6 and more than 8 tons of waste were collected. months of work, has been operational since October 2019. It has reduced energy costs by 23%. ➢ An ambitious project for a covered parking in the Skhirat distribution center is being studied and will be tested by the beginning of 2021.

OUR HUMAN RESOURCES POLICY TRAINING, AT THE HEART OF OUR BUSINESS ➢ O n e o f t h e b i g g e s t recruiting companies in Morocco ( 1,300 people recruited in 2019) ➢ An internal training school: 1,500 beneficiaries each year, 22 training cycles and approximately 180 Professional License in Trade and Distribution in alternance with the Certificate of Operator of Meats in alternance with the FSJES of Settat IRTSE of Kenitra internal trainers ; ➢ Studied and adapted trainings delivered each year for more than 2,000 employees ; ➢ Partnerships with Schools & Universities in order to set up professional and alternance programs: 103 students trained in 2019 . Management of Trade & Distribution in Food Processing with the Degree in Agri-food Sciences and Business Techniques with FST of Settat the FST of Al Hoceima

FIRST ESG ACHIEVEMENT ATTESTATION LEVEL OF MATURITY ISO 26000

OPENING OF THE AGADIR F&V PLATFORM

OPENING OF AN F&V PLATFORM IN AGADIR OPERATIONAL EXPANSION ➢ Opening in September 2019 of the Fruits & Veggie regional distribution center of 1,200 sqm on 1 ha land reserve. ➢ Optimal location close to the country’s largest farms ➢ Regional dimension : 80% of the assortment supplied and distributed regionally ➢ Domestic dimension : purchasing from the farms for the entire network

2 FINANCIAL RESULTS ➢ Q1 2020 Consolidated accounts ➢ 2019 Consolidated accounts ➢ 2019 Balance sheet indicators

Q1 2020 CONSOLIDATED ACCOUNTS

Q1 2020 MAIN FINANCIAL INDICATORS 
 KEY EVOLUTIONS Consolidated Capex Revenue +26% -13% 2,890.0 2,288.0 82.0 72.0 Q1 2019 Q2 2020 Q1 2019 Q1 2020 In MMAD Consolidated Debt +5% 2,774.0 2,573.0 Q1 2019 Q1 2020

Q1 2020 MAIN FINANCIAL INDICATORS

2019 CONSOLIDATED ACCOUNTS

MAIN FINANCIAL INDICATORS 
 KEY EVOLUTIONS Gross Operating Profit Sales +15% +12% 788.8 9,442.7 8,217.3 704.8 2018 Réalisé 2019 2018 Réalisé 2019 In MMAD Net income Operating Income +10% +9% 318.0 440.1 288.4 402.1 2018 Réalisé 2019 2018 Réalisé 2019

MAIN FINANCIAL INDICATORS 
 KEY EVOLUTIONS Traffic In thousands of +14% bills 54,044.8 47,461.4 2018 Réalisé 2019 Investment (excl. securization) Fixed assets and Financing in MMAD in MMAD +23% Fexed 640.5 Assets Fxed 519.4 Assets Net Investment Net Investment Fiancning Debt Financing Debt 2018 Réalisé 2019 2018 2019 Financements Permanents Inves;ssement Permanent Financing Net Investment

2019 CONSOLIDATED FINANCIAL STATEMENT INCOME STATEMENT VS. HISTORICAL DATA Historic 2018 Achheived 2019 Evolution Change Sales of Goods 8 217 333 9 442 658 1 225 325 15% Sales of Goods and Services 815 623 953 144 137 521 17% Taux 9,9% 10,1% 0,17 Revenues 9 032 957 10 395 803 1 362 846 15% Direct Margin 970 637 1 037 118 66 482 7% ➢ A year of volume: Rate 11,8% 11,0% -0,83 Gross Margin 1 786 260 1 990 262 204 002 11% ▪ + 1,225 MMAD in additional sales, Rate 21,7% 21,1% -0,66 Operating Expanses 1 081 418 1 201 452 120 034 11% ▪ +15% compared to historical figures: Rate 13,2% 12,7% -0,44 EBITDA 704 842 788 811 83 968 12% ➢ Increase in gross margin of 204 MMAD; Rate 8,6% 8,4% -0,22 ➢ Decrease of operating expense ratio by 44 Amortization 278 154 323 078 44 924 16% bp. thanks to economies of scale; Rate 3,4% 3,4% 0,04 EBIT 426 689 465 733 39 044 9% Rate 5,2% 4,9% -0,26 ➢ Stable financial result despite an investment Financial Result -24 627 -25 674 -1 047 4% of 640 MMAD . Rate -0,3% -0,3% 0,03 Operating Income 402 062 440 059 37 996 9% Rate 4,9% 4,7% -0,23 Other Income -4 151 -6 969 -2 818 68% Rate -0,1% -0,1% -0,02 Income Before Taxes 397 912 433 090 35 178 9% Rate 4,8% 4,6% -0,26 Taxes 109 511 115 083 5 573 5% Rate 1,33% 1,22% -0,11 Net Income 288 401 318 006 29 605 10% 3,51% 3,37% -0,14

KEY PERFORMANCE INDICATORS SALES Sales By Perimeter Gap Historic Achieved EVOLUTION OF SALES Historic2018 2019 Value % + 15% CONSTANT PERIMETER 8 024 465 8 783 102 758 637 9% Openings 2018 192 868 450 151 257 283 133% 104 stores Openings 2019 0 209 406 209 406 NA TOTAL GROUP 8 217 333 9 442 658 1 225 325 15% + 22% ▪ Progression of 22% of sales for the hypercash segment thanks to the increase in sales at constant perimeter 11 stores 36% of Group sales ▪ Progression by 12% of sales of supermarkets thanks to: ❑ The 2% increase in sales at constant perimeter +12% ❑ The contribution of store openings in 2018 and 2019 by respectively, 170 MMAD 84 stores and 151 MMAD 37% of Group sales ▪ Increase in sales of hypermarkets by 8%: +8% ❑ The increase in sales at constant perimeter by 2% ❑ The contribution of store openings in 2018 and 2019 by respectively, 69 MMAD 9 stores and 59 MMAD 23% of Group sales

CONSOLIDATED ACCOUNTS 
 GROSS OPERATING PROFIT & OPERATING INCOME Change in EBITDA and operating profit (MMAD) Evolution of margins (% of sales) -20 bp. +12% -30 bp. +9% ➢ In terms of value, EBITDA reached 789 MMAD and recorded a progress of +12% compared to 2018: ▪ The increase in EBITDA covers all business segments, ▪ This increase was mainly due to the increase in operating margins of 204 MMAD. ➢ The increase in business volumes has also led to economies of scale and improved the Group’s operating expense ratio by 44 bp. compared to sales. The improvement in the expense ratio concerns both head offices and stores. ➢ The EBITDA ratio to sales fell -20 bp compared to which is mainly explained by a more aggressive commercial strategy to gain in volume and traffic.