Regulatory News:

Casino (Paris:CO):

  • In the fourth quarter, strong growth in sales at ?12.9 billion (+35.2%), driven by International subsidiaries and by sustained organic growth* at 3.2%
    • Internationally, very good performance (+8.5%), in line with previous quarters
    • In France (-2.2%), the quarter was marked by a proactive policy of price reductions and the ongoing decline in hypermarkets' multimedia sales, offset by Cdiscount's excellent performance (+16.1%), and Leader Price and Monoprix's solid results.

EVOLUTION OF THE GROUP'S CONSOLIDATED NET SALES IN THE 4TH QUARTER OF 2012

     

Consolidated net sales

   Q4 2011   Q4 2012   Change Q4 2012/Q4 2011
    in ?m   in ?m   Total growth  

Organic growth*

Total continuing

operations

   9,512   12,856   +35.2%   +3.2%
France   4,909   4,757   -3.1%   -2.2%
International 4,604 8,098 +75.9%   +8.5%
 

In the fourth quarter of 2012, the Group's consolidated sales were up +35.2%. Organic growth* was steady at +3.2% (+2.2% including petrol and calendar effect). The effect of changes in scope was +36.3%, primarily due to the full consolidation of GPA as of 2 July 2012. Foreign-exchange rates had an impact of -3.3%. The petrol effect was -0.3% for the quarter. Average calendar effect was -0.6% in France and -0.7% internationally.

2012 ANNUAL SALES

     
Consolidated net sales   2011   2012   Change 2012/2011
    in ?m   in ?m   Total growth   Organic growth*
Total continuing

operations

   34,361   41,971   +22.1%   +4%
France   18,748   18,447   -1.6%   -0.8%
International 15,613 23,524 +50.7%   +9%
 

_________________________

* Excluding petrol and calendar effect; organic growth is growth at constant scope of consolidation and exchange rates

Q4 2012 SALES

In France, trading was marked by price drops, Cdiscount's excellent performance (+16.1%) and robustness of convenience formats

In France, total household consumption was soft in the fourth quarter of 2012, except for online sales of non-food products.

In order to better meet client expectations, several Group banners (Casino hypermarkets and supermarkets and Franprix) dropped prices significantly for private label and entry price products, which account for more than 40% of sales volume. This proactive policy, funded by lower promotional activity, had a negative impact on same-store sales in the year's final quarter.

During the fourth quarter, organic growth in France totalled -2.2% excluding petrol and calendar effect. Overall growth was -3.1% at ?4,757 million.

  • Convenience formats posted generally satisfactory growth in sales on an organic basis (excluding petrol and calendar effect): +1% for Monoprix, +0.3% for Franprix - Leader Price, due to a more efficient management of the store network that led to the closure of unprofitable stores; superettes (-0.5%) and Casino supermarkets (-1.2%) declined slightly.
  • Géant's same-store sales fell by -9.9% excluding calendar effect due to the combined impact of price drops, lower promotional activity and reductions to retail space.
  • In contrast, Cdiscount's growth was particularly steady (+16.1%), benefiting from its leading position in online sales of technical products and the rapid development of its marketplace. This performance enables to post a slight progression (+0.3%) in the annual cumulative non-food sales of Géant and Cdiscount.

International: continued strong organic growth: +8.5% excluding petrol and calendar effect

In keeping with previous quarters, international subsidiaries posted another quarter of strong organic growth at +8.5% excluding petrol and calendar effect. Total sales for International subsidiaries, which rose +75.9% to ?8,098 million, also benefited from the full consolidation of GPA as of 2 July 2012. The foreign-exchange effect had a negative impact of -6.8% on international sales in the fourth quarter 2012.

  • Latin America posted strong organic growth of +7.8% excluding petrol and calendar effect, driven by high same-store growth in Brazil and dynamic expansion in Brazil and Colombia.
  • Organic growth excluding petrol and calendar effect for Asia was still very significant at +15.9%, up from the third quarter, due to the sustained pace of expansion and same-store growth that improved markedly compared to the third quarter.

Total International sales accounted for 63% of Group sales over the period, compared with 48% in the fourth quarter 2011.

************************************

FRANCE: SALES ANALYSIS - Q4 2012

Sales in France came to ?4,757 million in the fourth quarter of 2012, a decline of -2.2% in organic growth, excluding petrol and calendar effect.

Evolution in sales

       
In ?m Total growth  

Organic

growth*

    Q4 2011   Q4 2012   Q4 2012   Q4 2012   Q3 2012
Net sales before tax - France   4,908.6   4,757.4   -3.1%  

-2.2%

  +0.2%
Casino France   3,261.1   3,095.2   -5.1%   -3.8%   +0.1%
Géant Casino hypermarkets   1,522.3   1,340.1   -12%   -11.7%   -7%
Casino supermarkets   905.3   885.8   -2.2%   -1.2%   +3.5%
Superettes   343.1   339.2   -1.1%   -0.5%   +0.6%
Cdiscount & Other businesses   490.4   530.1   +8.1%   +10.8%   +14.2%
Franprix - Leader Price   1,106.7   1,117.4   +1%   +0.3%   +0%
Monoprix   540.7   544.7   +0.7%   +1%   +1.4%
 

Evolution in same-store sales, excluding petrol

   
    excluding calendar effect
    Q4 2012   Q4 2012   Q3 2012
Géant Casino hypermarkets   -10.5%   -9.9%   -5.4%
Casino supermarkets   -7%   -6.1%   -1.7%
Franprix   -3.3%   -2.8%   -2.6%
Leader Price   -1.5%   -0.2%   +0.1%
Monoprix   -1.3%   -0.9%   +0.2%
 

____________________

* Excluding petrol and calendar effect.

  • Casino France

Géant Casino's same-store sales fell by -9.9%1 excluding petrol.

In a context of soft consumption for Q4 2012, same-store food sales were down -7.6%*. This change was due primarily to a proactive policy of prices' reductions initiated by the banner on its private-label and entry- price products. Price cuts were funded by reducing promotional activities.

According to the latest price data collected by consumer panels, Géant Casino has become the least expensive food banner in France for the private-label and entry-price products for convenience goods, fresh products and industrial products ("PGCFI"). Géant Casino is thus positioning itself below all French hypermarkets and supermarkets competitors.

Week 1, 2013 independent panel price indices1

    Private-label brands   Entry price
Géant Casino   95.1   96.6
 

1 Panel methodology: convenience goods, fresh products and industrial products, unweighted indices including promotions, using checkout data from 5,830 stores

The banner has been continuing this price-cutting initiative for the national brands since the end of the fourth quarter.

Same-store non-food sales declined in a backdrop of a firm reduction of multimedia categories: surfaces, as well as assortment, number of references and promotions were significantly reduced in 2012.

In 2013, Géant will continue to refocus on the most buoyant categories (luggage, household linen, DIY, etc.), and to roll out Cdiscount pick-up points in drive-through. The banner will adapt its surfaces to the evolution of its assortment.

Excluding petrol and calendar effect, Casino Supermarket organic sales declined -1.2% vs. Q4 2011. Like Géant, the banner readjusted the prices of its private-label and entry-price products - funded by a sustained reduction in promotional activities - with a negative impact on same-store sales in Q4. The banner has kept up its strategy of excellence in fresh goods and rollout of local products. Expansion was robust, with 3 openings during the fourth quarter, bringing the number of stores opened in 2012 to 7.

Sales in superettes posted a -0.5% decline (excluding calendar effect). The banner completed reworking its assortment, with emphasis on its private label. 181 stores joined the network over the quarter, bringing their total number to 422 for the year. The stores under the new Casino Shop and Shopping concepts (11 Casino Shopping and 77 Casino Shop stores open at the end of 2012) posted good results.

Cdiscount sales rose +16.1% because of an excellent December in which Toys and High-Tech products performed well.

Business volume rose by 22.9% in the fourth quarter, thanks notably to the strong growth of the marketplace, which accounted for nearly 10% of the site's business volume at the end of December. The total number of offers posted by the site surpassed 1 million references.

Finally, c. 10% of the site's sales are now made via smartphones and tablets.

Cdiscount remains a key tool in the Group's multi-channel strategy, which continued to roll out physical pick-up points within stores. At the end of 2012, there were nearly 3,000 pick-up points.

1 Excluding calendar (-0.6% over Q4) and restated for the transfer of 4 hypermarkets to Casino Supermarkets.

  • Franprix - Leader Price

Total Franprix-Leader Price sales were up +1% despite the impact of reorganising the store network, which entailed the closure of unprofitable locations.

Leader Price same-store sales excluding calendar effect declined slightly by -0.2% with footfall improving since Q3 2012. Sales initiatives begun early in the year (assortment and pricing policy) continued to bear fruits in the fourth quarter, with a value proposition that fits the current climate of consumption. The selection of fresh products (renovated for fruits and vegetables) and year-end festive products proved very successful. Renovation of stores continued with more than half of the network switched to the new concept. In addition, six stores were opened in the fourth quarter, bringing the total number of openings over the whole year to 18.

Franprix sales declined by -2.6% on an organic basis excluding calendar effect over the quarter, due to the impact of accelerated reorganisation of the store network. The banner continued repositioning its private label pricing and working on its assortment during the quarter. The banner opened 17 stores over the period, bringing the number of stores opened in 2012 to 39.

Negotiations are well advanced between the Group and the German group Norma, specialist in German hard discount stores, to take over 38 convenience stores with high growth potential in southeast France. This acquisition will enable Leader Price and Franprix to speed up their development in a particularly dynamic region and place the Casino Group on a stronger footing for the most buoyant formats in the strategic region around Lyon and the Mediterranean coast. It will be submitted to the French Antitrust Authority and is expected to come into force by the end of the first half of 2013.

  • Monoprix

Sales at Monoprix rose +1% on an organic basis excluding petrol and calendar. Thanks to successful promotions and limited-edition and designer collections, apparel sales continued to outperform the market. With regard to food, fresh products posted satisfactory performance and same-store growth excluding calendar effect was -0.9%. There was very active expansion over the fourth quarter with 16 store openings, bringing the number of openings to 36 in 2012.

INTERNATIONAL: SALES ANALYSIS - Q4 2012

Consolidated sales at International subsidiaries rose substantially by +75.9%.

Scope effects had a positive impact of +74.8%, related to the full consolidation of GPA.

Exchange rates had an unfavourable impact of -6.8%, resulting primarily from the Brazilian real's sharp depreciation against the euro.

Once again, organic growth was very high at +8.5%*, in keeping with previous quarters, driven by solid performance in both Latin America and Asia.

Evolution of International sales growth in the 4th quarter of 2012

    Total growth  

Organic growth*

   Same-store

growth*

Latin America   +93.1%   +7.8%   +5.5%
Asia   +21.2%   +15.9%   +9.2%
 

In Latin America, same-store sales grew by +5.5%, excluding petrol and calendar effect, notably reflecting GPA's solid performance in Brazil. Organic growth was +7.8%*, boosted by continued rapid expansion, particularly in Colombia. Total sales rose +93.1%, primarily under the impact of the full consolidation of GPA.

  • GPA in Brazil

In Brazil, GPA posted same-store sales up +6.6% excluding petrol.

With respect to food, same-store sales for GPA Food were up +6.4% (+5.6%** gross same-store sales published by GPA) driven by strong promotional activities, including this year's expansion of the Black Friday campaign to supermarkets and convenience stores. They also benefited from the excellent performance of Assaí cash & carry stores and Minimercado stores. The Minimercado banner sped up its expansion with 30 stores opening during the quarter. Five other stores were also opened: 1 hypermarket, 2 supermarkets and 2 Assaí stores, bringing the total number of GPA Food openings to 55 for 2012.

As for non-food, Viavarejo same-store sales continued to grow quickly at +6.9% (+6%** gross same-store sales published by GPA), driven by significant sales initiatives and the extension of tax incentives on purchases of household appliances and furnishings. They also benefited from Ponto Frio stores repositioning and improved product assortment. Expansion continued in the fourth quarter with the opening of 12 Casas Bahia and 4 Ponto Frio stores.

* Excluding petrol and calendar effect.
** Data published by GPA on 11 January 2013.

  • Exito in Colombia

Total sales for Exito grew strongly in the fourth quarter, under the combined influence of positive organic growth and a favourable foreign-exchange effect. Exito benefited from the rapid expansion of its store network, the strengthening of private labels in its assortment, and continued development of activities complementary to retail (notably credit and insurance).

The expansion of Exito was focused on the development of convenience and discount stores, with 35 store openings, including 4 hypermarkets, including one with a shopping mall, as well as 2 Carulla Express, 1 Carulla Super, 3 Exito Express and 25 Surtimax.

Exito's Q4 earnings will be released end - January 2013.

In Asia, same-store sales growth excluding calendar effect totalled +9.2%. Organic growth in sales excluding calendar effect maintained a high level of +15.9%. Total sales grew +21.2%.

  • Big C Thailand

Big C posted organic sales growth excluding calendar effect of +17.5%. Big C's same-store performance was robust at +12.4% excluding calendar effect (with a favourable comparison basis). Significant investments in marketing and promotions were made, with a new coupon policy being rolled out and the extremely successful launch of the first Golden Week, modelled after Black Friday.

The highly dynamic expansion also contributed to organic growth, with the opening of 1 hypermarket, 1 supermarket, 36 Mini Big C and 7 Pure. 129 stores were opened in 2012.

  • Big C Vietnam

Big C Vietnam continued its dynamic expansion policy, allowing the banner to post positive sales growth on an organic basis. There was active expansion with the opening of 2 hypermarkets and shopping malls and 1 C Express over the quarter.

************************************

Schedule of Financial Disclosures

Thursday 21 February (before the opening of the markets): 2012 Annual Results

Disclaimer

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

APPENDICES

Main changes in the scope of consolidation

  • Change in GPA stake, fully consolidated since 2 July 2012. GPA was consolidated at 40.1% as of 31 December 2011
  • Full consolidation of companies owning 21 stores within the Franprix - Leader Price Group as of July 2012
  • Full consolidation of BARAT into Franprix - Leader Price from 8 March 2012
    Fourth quarter   Change   12 months   Change
    2011

?m

   2012

?m

   Reported  

At constant

exchange rates

   2011

?m

   2012

?m

   Reported  

At constant

exchange rates

FRANCE   4,908.6   4,757.4   -3.1%   -3.1%   18,747.7   18,446.7   -1.6%   -1.6%
Of which:                                
Casino France   3,261.1   3,095.2   -5.1%   -5.1%   12,364.8   12,158.3   -1.7%   -1.7%
Géant Casino hypermarkets   1,522.3   1,340.1   -12%   -12%   5,622.8   5,246.4   -6.7%   -6.7%
Casino supermarkets   905.3   885.8   -2.2%   -2.2%   3,618.8   3,686.7   +1.9%   +1.9%
Superettes   343.1   339.2   -1.1%   -1.1%   1,485.2   1,479.7   -0.4%   -0.4%
Other businesses   490.4   530.1   +8.1%   +8.1%   1,638   1,745.6   +6.6%   +6.6%
Franprix - Leader Price   1,106.7   1,117.4   +1%   +1%   4,410   4,278.6   -3%   -3%
Monoprix   540.7   544.7   +0.7%   +0.7%   1,973   2,009.8   +1.9%   +1.9%
INTERNATIONAL   4,603.6   8,098.3   +75.9%   +82.7%   15,613.1   23,523.9   +50.7%   +54.2%
Of which:                                
Latin America   3,596.7   6,944.3   +93.1%   +103%   11,826.3   19,250.6   +62.8%   +69.1%
Asia   755.8   916.4   +21.2%   +15.6%   2,895.2   3,407.3   +17.7%   +10.8%
Other sectors   251.1   237.6   -5.4%   -5.2%   891.6   866   -2.9%   -3%
NET SALES FROM CONTINUING OPERATIONS   9,512.2   12,855.7   +35.2%   +38.4%   34,360.8   41,970.7   +22.1%   +23.7%
               

If Casino group had become sole controlling shareholder of GPA on 1 January 2012 (full consolidation at 100% of GPA from this date), Latin American total sales under the period ended on 31 December 2012 would have been ?24,994 million, bringing total Group sales to ?47,712 million.

Exchange rates

Average exchange rates   9-month 2011   9-month 2012   Change   12-month 2011   12-month 2012   Change
Argentina (ARS / EUR)   0.174   0.175   +0.5%   0.174   0.171   -1.8%
Uruguay (UYP / EUR)   0.037   0.038   +2.5%   0.037   0.038   +3.1%
Thailand (THB / EUR)   0.023   0.025   +6.6%   0.024   0.025   +6.2%
Vietnam (VND / EUR) (x1,000)   0.035   0.038   +7.5%   0.035   0.037   +6.5%
Colombia (COP / EUR) (x1,000)   0.390   0.435   +11.4%   0.389   0.433   +11.1%
Brazil (BRL / EUR)   0.436   0.407   -6.6%   0.430   0.399   -7.3%
           

Organic growth: the organic growth is at constant scope of consolidation and exchange rates.

PERIOD-END STORE NETWORK: FRANCE

FRANCE

   31 Dec. 2011   30 Sept. 2012   31 Dec. 2012
Géant Casino hypermarkets   127   125   125
Of which French Affiliates 8 9 9
International Affiliates 5 6 6
+ service stations   101   97   97
Casino supermarkets 422 439 445
Of which French Affiliates 51 55 58
International Franchise Affiliates 32 39 41
+ service stations   170   172   173
Franprix supermarkets 897 894 891
Of which Franchise outlets   379   387   390
Monoprix supermarkets 514 527 542
Of which Naturalia 55 61 71

Of which Franchise outlets/Affiliates

   130   133   137
Leader Price discount stores 608 601 604
Of which Franchise outlets   271   238   231
Total supermarkets and discount stores 2,441 2,461 2,482
Of which Franchise outlets/Stores operated under business leases   863   852   857
Petit Casino superettes 1,758 1,657 1,575
Of which Franchise outlets   29   26   26
Casino Shopping superettes   6   10   11
Casino Shop superettes   16   29   77
Eco Services superettes   1   1   1
Coop Alsace superettes 48 144
Of which Franchise outlets       48   144
Spar superettes 956 969 963
Of which Franchise outlets   755   747   739
Vival superettes 1,752 1,699 1,705
Of which Franchise outlets   1,750   1,698   1,704
Casitalia and C'Asia superettes   1   1   1
Other Franchise stores 1,134 1,104 1,105
Corner, Relay, Shell, Elf, Carmag   1,134   1,104   1,105
Wholesale activity   937   935   935
TOTAL CONVENIENCE STORES 6,561 6,453 6,517
Of which Franchise outlets/Stores operated under business leases/Wholesale   4,606   4,559   4,654
Other Affiliate stores 26 29 29
Of which French Affiliates 18 19 20
International Affiliates   8   10   9
Other businesses 295 308 304
Cafeterias 293 306 302
Cdiscount   2   2   2
TOTAL France   9,450   9,376   9,457
Hypermarkets (HM)   127   125   125
Supermarkets (SM)   1,833   1,860   1,878
Discount (DIS)   608   601   604
Superettes (SUP) and other stores (MAG)   6,587   6,482   6,546
Other (DIV)   295   308   304
 

PERIOD-END STORE NETWORK: INTERNATIONAL

     
International   31 Dec. 2011   30 Sept. 2012   31 Dec. 2012
ARGENTINA 24 23 24
Libertad hypermarkets 15 15 15
Other businesses   9   8   9
URUGUAY 52 52 52
Géant hypermarkets 1 1 1
Disco supermarkets 27 27 27
Devoto supermarkets   24   24   24
BRAZIL 1,571 1,589 1,640
Extra hypermarkets 132 137 138
Pao de Açucar supermarkets 159 160 162
Extra Perto supermarkets 204 207 207
Assai discount stores 59 59 61
Extra Facil and Minimercado Extra superettes 72 77 107
Casas Bahia discount stores 544 556 568
Ponto Frio   401   393   397
THAILAND 221 304 348
Big C hypermarkets 108 112 113
Big C supermarkets 12 18 18
Mini Big C superettes 51 90 126
Pure   50   84   91
VIETNAM 23 30 33
Big C hypermarkets 18 19 21
New Cho superettes 5 7 7
C Express superettes   0   4   5
INDIAN OCEAN 53 53 57
Jumbo hypermarkets 11 11 11
Score/Jumbo supermarkets 22 22 25
Cash and Carry supermarkets 5 5 5
Spar supermarkets 8 7 6
Other businesses   7   8   10
COLOMBIA 351 395 427
Exito hypermarkets 80 85 87
Pomona, Carulla, Exito supermarkets 130 134 136
Surtimax discount stores 78 94 119
Exito Express and Carulla Express superettes 54 74 77
Ley and others 9 8 8
             
TOTAL INTERNATIONAL   2,295   2,446   2,581
Hypermarkets (HM)   365   380   386
Supermarkets (SM)   591   604   610
Discount (DIS)   137   153   180
Superettes (SUP)   182   252   323
Other (DIV)   1,020   1,057   1,082
 

ANALYST AND INVESTOR 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
or
GROUP EXTERNAL COMMUNICATION DEPARTMENT
PRESS CONTACT
Aziza BOUSTER
Tel: +33 (0)1 53 65 24 78
Mob: +33 (0)6 08 54 28 75
abouster@groupe-casino.fr