Casino Group: first-half 2021 results and second-quarter 2021 net sales

FIRST-HALF 2021 RESULTS AND SECOND-QUARTER 2021 NET SALES

Further increase in profitability

Trading profit up +24% at constant exchange rates, of which +9% in France and +33% in Latin America

Net sales for first half stable (-0.5%) on an organic basis

In France, success in the transformation of banners with trading margin up +81 bps and 353 stores opened, laying the foundation for a strong return to growth in H2

In France

• Retail banners¹:

  • Strong increase in profitability across all banners with trading margin up +81 bps to 2.1%. Trading profit rose by +50%¹ (+€49m) thanks to the Group’s transformation plans and reduced Covid-related costs, in a context of lower net sales relative to the very high basis of comparison due to the first lock-down during H1 2020.

  • Net sales represented a same-store change of -8.4% in Q2 2021, due to the high basis of comparison in 2020 (+6.0% in Q2 2020), the temporary drop of tourism and public health restrictions in H1 2021 (closure of non-essential product sections, curfew). Looking beyond these temporary challenges, the Group continued to activate its growth drivers:

    • Faster delivery on the strategic priorities of: (i) expansion, with the opening of 353 convenience stores during H1 (initial target: 300 stores), and (ii) E-commerce, with same-store sales up +103% over two years, outperforming the market (+59%²), and continued roll-out of the Ocado and Amazon partnerships and quick-commerce solutions from 800 stores.

  • Outlook for H2 2021: growth in profitable formats, with (i) expansion of the store base (400 openings in local formats Franprix, Vival, Naturalia, etc.) and (ii) acceleration in E-commerce thanks to our exclusive partnerships (Ocado, Amazon) and the solutions deployed at our stores.

    • Inflection since early July with sales down -4.0%³ on a same-store basis vs. -8.4% in Q2, i.e. an improvement of +4.4 pts, and an increase in Cdiscount GMV of +13.5%.

• Cdiscount: H1 2021 EBITDA of €48m⁴. Further growth in the marketplace in H1 of +33% over two years (+10% year‑on‑year) and growth in digital marketing of +72% over two years (+44% y-o-y).

  • Outlook for H2 2021: further progress on priority strategic plans (marketplace, digital marketing, Octopia) resulting in strong EBITDA growth.

• GreenYellow: strong business momentum, with a photovoltaic pipeline of 809 MWp (+85% vs. H1 2020) and 3.5 GWp in additional opportunities.

  • Outlook for H2 2021: growth in EBITDA.

• RelevanC: growth in net sales of +32% in Q2 2021. Signing of a commercial partnership with Google Cloud and Accenture.

  • Outlook for H2 2021: accelerated expansion in France and internationally.

• Disposal plan: signing with BNPP of a partnership and an agreement for the disposal of Floa for a total amount of €179m⁵ and securing of a €99m⁶ earn-out, bringing total disposals to €3.1bn.

  • The Group is maintaining its target of €4.5bn in asset disposals in France.

• Improved financial terms, revised covenants and extension of €1.8bn of Casino’s main syndicated credit facility to July 2026. At 30 June 2021, the Group comfortably complied with the covenant⁷, with headroom of €359m on EBITDA after lease payments (2.1x vs. limit of 3.5x).

In Latin America

• Strong growth in profitability with H1 EBITDA and trading profit up +21% and +33% respectively at constant exchange rates. Organic growth in net sales of +5.5% in Q2, driven by Assaí (+22%).

• Two-fold increase in Latam asset value since the Assaí spin-off was announced⁸.

FIRST-HALF 2021 RESULTS

Consolidated net sales amounted to €14,480m in H1 2021, stable (-0.5%) on an organic basis¹² and down
-10.3% after taking into account the effects of exchange rates and hyperinflation for -7.2%, changes in scope for -2.2% and fuel for +0.5%.
On the France Retail scope, net sales were down -7.3% on a same-store basis. Including Cdiscount, same-store growth in France came to -6.3%.
E-commerce (Cdiscount) gross merchandise volume (GMV) came to nearly €2bn, a year-on-year increase of +2.3%¹³ (+14%² over two years), led by the expansion of the marketplace.
Sales in Latin America were up by +6.9% on an organic basis1, mainly supported by the very good performance in the cash & carry segment (Assaí), which grew by +22%2 on an organic basis.

Consolidated EBITDA came to €1,099m, an increase of +3% including currency effects and +11.1% at constant exchange rates.
France EBITDA (including Cdiscount) amounted to €622m, including €573m on the France Retail scope and €48m for Cdiscount. France Retail banners EBITDA (France Retail excluding GreenYellow, property development and Vindémia) was up +9% to €543m. GreenYellow generated EBITDA of €28m¹⁴ and property development operations delivered €3m.
France EBITDA margin (including Cdiscount) came to 8.0%, an increase of +105 bps.
In Latin America, EBITDA rose by +21.1% excluding currency effects and including tax credits¹⁵ for €6m. EBITDA excluding tax credits⁴ was up +19.8%.

Consolidated trading profit came to €444m (€438m excluding tax credits⁴), an increase of +11.4% including currency effects and +23.5% at constant exchange rates (+22% excluding tax credits).
In France (including Cdiscount), trading profit stood at €173m, including €166m on the France Retail scope and €7m for Cdiscount. France Retail banners trading profit (France Retail excluding GreenYellow, property development and Vindémia) grew by a strong +50% to €146m. Trading profit came to €19m for GreenYellow and to €2m for property development operations.
Trading margin in France (including Cdiscount) was up +39 bps at 2.2%, supported by an improvement from France Retail, which recorded a +45 bps increase in trading margin to 2.4%.
In Latin America, trading profit totalled €271m, an increase of +13.5% (+29.9% excluding tax credits and currency effects), driven by the continued strong sales momentum at Assaí, the transfer of sales to E-commerce and the repositioning of hypermarkets at Multivarejo, and the continued profitability and positive effect of real estate development at Éxito.

Underlying net financial expense and net profit, Group share¹⁶

Underlying net financial expense for the period came to -€398m (-€244m excluding interest expense on lease liabilities) vs. -€404m in H1 2020 (-€239m excluding interest expense on lease liabilities). In France Retail, net financial expense include, as for the refinancing of the Term Loan B of April 2021, (i) a non-recurring expense of €40m mainly non-cash, and (ii) a permanent reduction in financial expenses of €9m over the full year. E-commerce net financial expense was virtually stable compared with 2020. In Latin America, financial expense was down.

Underlying net profit, Group share was up +€23m versus H1 2020.
Diluted underlying earnings per share¹⁷ stood at -€1.00, vs. -€1.20 in H1 2020.

The Group recorded a sharp improvement in other operating income and expenses of +€257m (+€11m in H1 2021 vs. -€246m in H1 2020). In France, excluding the asset disposal plan and GreenYellow, non-recurring expenses declined by 29% (from -€107m in H1 2020 to -€76m in H1 2021). In Latin America, other operating income and expenses amounted to a net expense of -€34m in H1 2021 (vs. -€18m in H1 2020).

Consolidated net profit (loss), Group share

Net profit (loss) from continuing operations, Group share improved by a sharp +€306m to -€35m, from -€340m in H1 2020.
Net profit (loss) from discontinued operations, Group share came out at -€170m in H1 2021, compared with -€162m in H1 2020.
Consolidated net profit (loss), Group share amounted to -€205m vs. -€502m in H1 2020.

Financial position at 30 June 2021
-
Consolidated net debt excluding the effect of IFRS 5 was stable compared with 30 June 2020, at €6.3bn, reflecting stable net debt in both France and the Latam region. Including the impact of IFRS 5, consolidated net debt came to €5.5bn versus €4.8bn in H1 2020.

At 30 June 2021, the Group's liquidity in France (including Cdiscount) was €2.6bn, with €528m in cash and cash equivalents and €2bn confirmed undrawn lines of credit, available at any time. The Group also has €339m in a segregated account for gross debt redemptions.

FIRST-HALF 2021 HIGHLIGHTS
-

Retail banners: increased profitability and progress in priority areas of expansion and E-commerce

Profitability continued to improve for the retail banners¹⁸, with trading profit margin up +81 bps to 2.1% in H1 2021. Trading profit increased by +50% in H1 2021, to €146m (vs. €97m in H1 2020), supported by a reduction in the cost base of €30m per quarter thanks to the transformation plans initiated in Q3 2020, which drove productivity gains at the head office and in stores.

Expansion of the store base and digitalisation

• Expansion of the Group’s store base continued during the period, with 353 convenience stores opened in urban, semi-urban and rural areas, of which 26 Naturalia. In Q2 2021, the Group opened 238 stores, in line with the initial target of 200 openings.

• The Group had 613 stores equipped with autonomous solutions as of end-June 2021 (vs. 533 as of end-2020), facilitating evening and weekend openings. 63% of payments in Géant hypermarkets and 58% at Casino Supermarkets were made by smartphone or automatic check-out as of end-June 2021 (vs. 61% and 48% respectively as of end-2020). CasinoMax app users accounted for 24% of sales in hypermarkets and supermarkets in Q2 (vs. 22% as of end-2020).

Food E-commerce

• Food E-commerce¹⁹ posted same-store sales growth of +15% for the period and +103% over two years, outperforming the market (+59%²⁰). The expanded offering now covers the full spectrum of home delivery solutions, through partnerships with high-tech players that are leaders in their field:

  • Next-day delivery from the O’logistique warehouse (automated with Ocado technology) via Monoprix Plus (30,000 items) and Casino Plus (24,000 items) ;

  • Same-day delivery/in-store click & collect solutions picked up pace with the launch of an Amazon click & collect service within 2 hours from Géant Casino and Casino Supermarkets (target of 180 stores). In addition, new deployments of Amazon lockers are planned, in addition to the 600 already installed to date in the Group ;

  • Delivery within two hours: extension of the partnership with Amazon to Montpellier and Strasbourg, in addition to Paris, Nice, Lyon and Bordeaux ;

  • Delivery within 30 minutes: roll-out of a quick-commerce offering across 800 stores thanks to Franprix’s delivery services and the partnerships with Deliveroo and Uber Eats ;

  • Launch of a food marktetplace on the Casino.fr website

Sales initiatives

The Group’s banners are adapting their offering to new consumer trends by developing a series of initiatives designed to meet their customers’ expectations:

• Expansion of Monoprix’s range of services based on three key areas: (i) health, through Santé Au Quotidien spaces dedicated to health and well-being, with advice from a qualified pharmacist and a range of CBD products; (ii) local products, both food and non-food, from less than 100km away, and (iii) a sustainable mobility offering including bikes, kick scooters, a service station and a range of accessories (helmets, connected devices and fashion accessories)

• Development of Franprix in suburban areas with 150 store openings scheduled over two years and specific customer services (newspapers and magazines, parcel receipt, hot meals and cooked dishes for the evening, and electric bike rental in partnership with Véligo)

Evolution of concepts within Géant Casino and Casino Supermarkets: both banners have introduced artificial intelligence into the operational management of their stores, and partnerships have been signed with some fifteen brands and start-ups to introduce innovative concepts (artisanal products in short circuits: juices, honeys, dairy products). Géant has deployed expanded fruit and vegetable areas, cash & carry spaces, developed electric mobility corners and will soon launch toy corners with La Grande Récré. In addition, 9 small, loss-making Géant stores have been converted into Casino Supermarkets to provide an offering that better suits local needs.

Outlook for H2 2021: given the success of the banners' transformation plans and their profitability, strong return to growth in H2 in profitable formats with (i) the expansion of the store base (400 openings) and (ii) an acceleration in E-commerce

Cdiscount²¹: solid performance from the marketplace, digital marketing and Octopia in the first half of the year

Cdiscount generated €49m²² in EBITDA, stable year-on-year (+148% over two years).

The marketplace recorded a half-yearly increase in gross merchandise volume (GMV) of +33% over two years (+10% year-on-year):

• The marketplace contribution to GMV rose by +4 pts year-on-year to 46%

• Marketplace revenues grew by +17% (+39% over two years) to €199m over the last 12 months

• Fulfillment by Cdiscount services accounted for 35% of marketplace GMV (up +7 pts year-on-year)

Digital marketing saw its revenues grow by +44% in H1 2021. It continued to be supported by the development of the Cdiscount Ads Retail Solution (CARS) digital marketing platform, where the number of sponsored products rose by +91% in H1 2021.

Turnkey marketplace solution Octopia recorded rapid growth in H1 2021, with a +60% increase in GMV (x3 over two years) in Products-as-a-Service and Fulfillment-as-a-Service solutions. Merchants-as-a-Service and Marketplace-as-a-Service solutions recorded a good start.

Outlook for H2 2021: further progress on priority strategic plans (marketplace, digital marketing, Octopia) resulting in strong EBITDA growth.

GreenYellow: increase in photovoltaic pipeline of +85% year-on-year and expansion into Europe

For the six months to 30 June 2021, GreenYellow generated EBITDA of €37m²³. Excluding gains on asset disposals, EBITDA increased by +40% in H1 2021 compared with H1 2020.

At 30 June 2021, GreenYellow had an advanced pipeline of 809 MWp in solar power projects, up a sharp +85% from 30 June 2020, and an additional prospective pipeline of 3.5 GWp. The advanced pipeline for the energy efficiency business came to 350 GWh, up +78% from 30 June 2020, with an additional prospective pipeline of nearly 900 GWh.

Expansion continued with the launch of an initial 4 MWp solar project in Bulgaria through a strategic partnership with Solarpro, a key player in the European photovoltaics market. GreenYellow has indicated that it intends to expand rapidly in Eastern Europe (Poland, Hungary, Bulgaria).

During the first half of the year, GreenYellow also strengthened its positions in its traditional geographies by supporting customers with their projects in both solar power and energy efficiency:

• • In Africa, via the largest self-consumption solar power plant in Senegal (1.6 MWp) for a key player in the country’s agrifood industry

  • In Madagascar, through the extension of the country’s largest solar power plant by 20 MWp to reach 40 MWp

  • In France, with the start-up of the 4.7 MWp solar canopies in Magny-Cours and the partnership with Franprix, aimed at reducing the energy use of its refrigeration facilities (by 30%), as well as their carbon footprint

  • In Asia, with the installation of photovoltaic systems at two sites for Thai particle board manufacturer Panel Plus Co., located in the suburbs of Bangkok and in the southern province of Songkhla

  • In Colombia, with a “cold PPA” program in a building under construction for an international hotel group

Outlook for H2 2021: growth in EBITDA.

RelevanC

RelevanC continued to accelerate, with growth in net sales of +32% in the second quarter.

During the quarter, RelevanC strengthened its positioning with:

• • A partnership with Google Cloud and Accenture to step up the development and commercialization of RelevanC solutions

  • The allocation of Premier Partner status to RelevanC, and the integration of RelevanC solutions into the Google Cloud’s B2B marketplace

Outlook for H2 2021: (i) further implementation of the partnership strategy and (ii) accelerated growth in France and internationally thanks to partners, notably Google Cloud and Accenture

Successful spin-off of Assaí's activities in Latin America

The spin-off of Assaí’s businesses was completed on 31 December 2020 and Assaí shares were admitted to trading on 1 March 2021. Assaí shares were distributed to GPA shareholders at a ratio of one Assaí share for each GPA share.

Each entity now operates autonomously and has direct access to the capital markets and different financing sources.

Casino's stake valuation in Latin America has doubled since the spin-off of Assaí was announced²⁴, rising from €1.1bn to €2.3bn.

Reinforcement of the Group's CSR commitments

As well as being the top retailer in terms of CSR performance according to Vigeo Eiris²⁵, a subsidiary of Moody’s, Casino Group maintained its AA rating from MSCI in June 2021.

Pursuing its climate action, the Group has committed to a 38% reduction in its greenhouse gas emissions by 2030²⁶, stepping up the commitment made in 2018 of an 18% reduction between 2015 and 2025³, which was validated by the Science Based Targets initiative. The Group is taking action to reduce carbon emissions in all its geographies (Franprix/GreenYellow partnership to reduce the carbon footprint of refrigeration units, carbon-neutral refrigerant gases in Carulla FreshMarket stores in Colombia).
Cdiscount has now reached carbon-neutral status for its deliveries, by reducing emissions through 3D packaging and bulk loading and by capturing residual emissions.

With its strategy designed to promote responsible consumption, the Group recorded an increase in the share of organic products of +0.9 pt²⁷ in H1 and deployed new bulk concepts in partnership with national brands. Other initiatives carried out by the Group include the transition to virtual discount coupons for Casino banners since 2020, thanks to the Casino Max application, and to virtual receipts and vouchers in March 2021. At Cdiscount, the aim is to promote reusable packaging, which will be offered to all customers by end-2021. In addition, the Group has extended Monoprix’s syndicated credit facility with an annual margin adjustment clause based on the achievement of CSR objectives (greenhouse gases, responsible label, vegetable protein products).

In addition, the Group continued to carry out solidarity actions during the first half of the year, making commitments to numerous charities including Secours Populaire with Franprix and Fondation des Femmes with Monoprix. Various food drives for students in financial difficulty were also organised at Casino banners during the period, in partnership with food banks. Lastly, the Group has decided to help revitalise rural areas by creating culture corners in Casino convenience stores, in partnership with Fondation Marc Ladreit de Lacharrière.

Asset disposal plan

On 27 July 2021, the Group has signed with BNPP a partnership and an agreement for the sale of Floa for €179m²⁸. This partnership plans the development of the fractional payment activity "FLOA PAY". In this context, Casino Group will remain associated with the successful development of FLOA's payment activity for 30% of the future created value²⁹.

In addition, the Group has secured and recorded in advance a €99m earn-out in relation to the Apollo and Fortress JVs³⁰.

The total amount from signed or secured disposals comes to €3.1bn.

Refinancing plan

As announced, Casino Group has improved the financial conditions and extended the maturity of its main syndicated credit facility from October 2023 to July 2026³¹ for an amount of €1.8bn.

To take into account the Group’s improved financial position and GreenYellow’s growth plan, the financial covenants have been eased. Consequently, as from 30 June 2021, the Group undertakes to comply on a quarterly basis with the following covenants, which replace the previous covenants, for the France Retail and E-commerce scope, excluding GreenYellow:

• • a ratio of secured gross debt to EBITDA after lease payments of less than 3.5x;

    • this covenant was comfortably complied with at 30 June 2021, with a ratio of 2.1x, with headroom of €359m on EBITDA after lease payments

  • a ratio of EBITDA after lease payments to net finance costs of more than 2.5x;

    • this covenant was comfortably complied with at 30 June 2021, with a ratio of 3.2x, with headroom of €199m on EBITDA after lease payments

In addition, Monoprix obtained an extension to January 2026 for its €130m syndicated credit facility which includes a yearly margin adjustment clause based on the satisfaction of CSR objectives:

- Reduction in Scopes 1 & 2 greenhouse gas emissions

- Proportion of net sales derived from products labelled "responsible"

- Net sales derived from vegetable protein products.

Second-quarter 2021 net sales

-

In the second quarter of 2021, the Group recorded net sales of €7,334m, down -6.5% in total due to exchange rates and consolidation scope impacts accounting respectively for -3.0% and -2.2%. The calendar effect was -0.5%. The Group’s quarterly same-store³² growth came to +6.0% over two years (-4.1% in Q2 2021, after +10.4% in Q2 2020). France (including Cdiscount) recorded a -1.2%¹ variation in its same-store sales over two years (-8.4% year-on-year).

For France Retail, same-store sales growth came to -8.4% for the quarter, impacted by an unfavourable basis of comparison (+6.0% in Q2 2020). The formats hardest hit were those that benefited the most from the surge in sales associated with the first lockdown last year, including the convenience format (-11.2%) and Franprix (-12.5%).
The second quarter of 2021 was shaped by a tightening of health restrictions with a curfew that led to an early closure of autonomous stores, France’s third lockdown which temporarily reduced the number of people in Paris, a temporary drop in tourism and the closure of sections selling “non-essential” goods, which affected Géant hypermarkets (-9.9%) and Monoprix stores (-4.9%).

Cdiscount³³ reported growth in gross merchandise volume (GMV) of +16% over two years (-6% year-on-year). Marketplace GMV grew by +30% over a two-year period (-7% year-on-year).

In Latin America, sales rose by +5.5% on an organic basis for the quarter. On a same-store basis, sales were up +12.3% over a two-year period (stable year-on-year). Second quarter sales growth in Latin America was again driven by the excellent performance of Assaí (up +9.2%² on a same-store basis and +22%² on an organic basis), reflecting the commercial format's continued attractiveness and the success of expansion strategy.

Outlook for H2 2021 in France

-

• With very satisfactory levels of profitability in all formats, priority focus on growth via the expansion of the store base and acceleration in E-commerce:

  • Opening of 400 convenience stores in H2 2021 (Franprix, Vival, Naturalia, etc.), bringing the total to 750 openings over the year

  • Acceleration of E-commerce based on structurally profitable models thanks to our exclusive partnerships (Ocado, Amazon) and the solutions deployed in stores

• Ongoing development of Cdiscount and GreenYellow

  • Casino Group continues its preparatory work to finance the accelerated growth of GreenYellow and Cdiscount

• Growth in cash flow from continuing operations³⁴

  • Continued EBITDA growth

  • Sharp reduction in non-recurring expenses

  • Expansion on convenience and food E-commerce formats, which require low Capex

The Board of Directors met on 28 July 2021 to approve the consolidated financial statements for first-half 2021. These financial statements have been reviewed by the Statutory Auditors.

The presentation of the 2021 half-year results is available on Casino Group’s corporate website (www.groupe-casino.fr/en)

APPENDICES – ADDITIONAL H1 2021 FINANCIAL INFORMATION RELATING TO THE AUTUMN 2019 REFINANCING DOCUMENTATION

See press release dated 21 November 2019

Financial information for the first half ended 30 June 2021:

In €m	France Retail + E-commerce	Latam	Total
Net sales35	7,810	6,670	14,480
EBITDA1	622	477	1,099
(-) impact of leases36	(326)	(145)	(471)
Adjusted consolidated EBITDA including leases1	296	331	628

Financial information for the 12-month period ended 30 June 2021:

In €m	France Retail + E-commerce	Latam	Total
Net sales1	16,319	13,933	30,253
EBITDA1	1,599	1,178	2,777
(-) impact of leases2	(640)	(273)	(912)
(i) Adjusted consolidated EBITDA including leases1 37	959	905	1 865
(ii) Gross debt1 38	5,279	3,198	8,477
(iii) Gross cash & cash equivalents1 39	538	1,595	2,133

As at 30^th June 2021, the Group’s liquidity within the “France + E-commerce” perimeter was €2,6bn,
with €528m of cash and cash equivalent and €2,032m confirmed undrawn lines of credit, available at any time

Additional information regarding covenants and segregated accounts:

Covenants tested as from 30 June 2021 pursuant to the Revolving Credit Facility dated 18 November 2019, as amended in July 2021
Type of covenant (France and E-commerce excluding GreenYellow)	As at 30 June 2021
Secured gross debt/ EBITDA after lease payments <3.50x	2.12x
EBITDA after lease payments/Net finance costs >2.50x	3.20x

The balance of the segregated account was €339m at June 30, 2021, after taking into account the redemption at maturity of the bond maturing in May 2021 (€118m).

No cash has been credited or debited from the bond segregated account and its balance remained at €0.

APPENDICES – FULL-YEAR RESULTS

• Consolidated net sales by segment

Net sales In €m	H1 2020 (restated)	H1 2021	Change	Change at CER
France Retail	7,791	6,863	-11.9%	-8,1%1
Latam Retail	7,401	6,670	-9.9%	+6.9%40
E-commerce (Cdiscount)	948	947	0.0%	-0,8%1
Group total	16,140	14,480	-10.3%	-0.5%1

• Consolidated EBITDA by segment

EBITDA In €m	H1 2020 (restated)			H1 2021		Change		Change at CER
France Retail		561	573		+2.2%		+2.6%
Latam Retail		459	477		+3.9%		+21.4%
E-commerce (Cdiscount)		43	48		+12.6%		+12.6%
Group total		1,063	1,099		+3.3%		+11.1%

• Consolidated trading profit by segment

Trading profit In €m		H1 2020 (restated)		H1 2021		Change		Change at CER
France Retail	154		166		+8.1%		+9.3%
Latam Retail	239		271		+13.5%		+32.9%
E-commerce (Cdiscount)	6		7		+11.9%		+11.9%
Group total	399		444		+11.4%		+23.5%

• Underlying net profit

In €m	H1 2020 (restated)	Restated items	H1 2020 (underlying)	H1 2021	Restated items	H1 2021 (underlying)
Trading profit	399	0	399	444	0	444
Other operating income and expenses	(246)	246	0	11	(11)	0
Operating profit (loss)	153	246	399	455	(11)	444
Net finance costs	(188)	0	(188)	(224)	0	(224)
Other financial income and expenses41	(291)	74	(217)	(175)	0	(174)
Income taxes42	15	(65)	(50)	(46)	(9)	(55)
Share of profit of equity-accounted investees	15	0	15	29	0	29
Net profit (loss) from continuing operations	(295)	255	(40)	41	(20)	21		xx	xx	xx	xx
o/w attributable to non-controlling interests43	45	9	55	76	18	93
o/w Group share	(340)	245	(95)	(35)	(38)	(72)

Underlying net profit corresponds to net profit from continuing operations, adjusted for (i) the impact of other operating income and expenses, as defined in the "Significant accounting policies" section in the notes to the consolidated financial statements, (ii) the impact of non-recurring financial items, as well as (iii) income tax expense/benefits related to these adjustments and (iv) the application of IFRIC 23.

Non-recurring financial items include fair value adjustments to equity derivative instruments (such as total return swaps instruments related to GPA shares) and the effects of discounting Brazilian tax liabilities.

• Change in net debt by entity

Net debt before IFRS 5 In €m	H1 2020	Change over the period	H1 2021
France	(4,620)	43	(4,577)
o/w France Retail excl. GreenYellow	(4,415)	210	(4,205)
o/w E-commerce (Cdiscount)	(376)	-52	(428)
o/w GreenYellow	171	-115	57
Latam Retail	(1,726)	-41	(1,767)
o/w Multivarejo	(636)	-144	(780)
o/w Assaí	(866)	16	(851)
o/w Éxito	(21)	46	26
o/w Segisor	(178)	15	(162)
Total	(6,347)	3	(6,344)

• France net debt at 30 June before IFRS 5

In €m – France + Cdiscount (excluding GreenYellow)	H1 2020	H1 2021
France net debt before IFRS 5 at 1 January	(4,222)	(3,873)
Free cash flow44 before asset disposals, disposal plan	(297)	(346)
Financial expenses45	(228)	(164)
Dividends paid to owners of the parent and holders of TSSDI deeply-subordinated bonds	(37)	(28)
Share buybacks and transactions with non-controlling interests	(1)	(1)
Other net financial investments	(255)46	14547
Other non-cash items	32	(458)48
o/w non-cash financial expenses	79	(30)
Change in net debt before IFRS 5 before asset disposals	-786	-853
Disposal plan and other asset disposals	216	9349
Net debt before IFRS 5 at 30 June	(4,792)	(4,633)

APPENDICES – NET SALES

Quarterly consolidated net sales by segment

NET SALES (in €m)	Q2 2021 net sales	Total growth		Organic growth50	Same-store growth1	Same-store growth1 over two years
France Retail	3,475	-11.0%		-8.9%	-8.4%	-2.9%
Cdiscount	464	-7.0%		-8.3%	-8.3%	+10.9%
Total France	3,939	-10.6%		-8.9%	-8.4%	-1.2%
Latam Retail	3,394	-1.4%		+5.5%	-0.2%	+12.3%
GROUP TOTAL	7,334	-6.5%		-2.4%	-4.1%	+6.0%
Cdiscount GMV	984	-6.1%		-5.3%	n.a.	n.a.

Quarterly consolidated net sales in France by banner

Net sales by banner (in €m)	Q2 2021 net sales	Total growth	Organic growth1	Same-store growth1	Same-store growth1 over two years
Monoprix	1,093	-3.9%	-3.3%	-4.9%	-2.1%
Supermarkets	711	-8.8%	-12.7%	-10.4%	-1.5%
o/w Casino Supermarkets51	670	-9.5%	-13.4%	-12.2%	-1.8%
Franprix	379	-15.2%	-14.4%	-12.5%	+0.4%
Convenience & Other52	449	-28.8%	-4.2%	-10.7%	+0.7%
o/w Convenience53	342	-5.5%	-6.7%	-11.2%	+4.8%
Hypermarkets	844	-7.5%	-12.7%	-9.9%	-10.6%
o/w Géant2	796	-8.2%	-13.9%	-11.4%	-11.5%
FRANCE RETAIL	3,475	-11.0%	-8.9%	-8.4%	-2.9%

Main half-yearly data – Cdiscount⁵⁴

Key figures	H1 2020	H1 2021	Reported growth	Reported growth over two years
Total GMV including tax	1,946	1,991	+2.3%	+13.5%
o/w direct sales	906	865	-4.5%
o/w marketplace sales	676	747	+10.5%
Marketplace contribution (%)	42.7%	46.3%	+3.6 pts
Net sales (in €m)	1,049	1,009	-3.8%	+1.4%
Traffic (millions of visits)	554	550	-0,7%

APPENDICES – OTHER INFORMATION

Gross sales under banner in France

TOTAL ESTIMATED GROSS FOOD SALES UNDER BANNER (in €m, excluding fuel)		Q2 2021	Same-store change (excl. calendar effects)	Same-store change (excl. calendar effects) over 2 years
Monoprix		987	-4.9%	-2.1%
Franprix		445	-13.6%	-0.9%
Supermarkets		667	-10.1%	-1.2%
Hypermarkets		691	-6.2%	-7.4%
Convenience & Other		581	n.a.	n.a.
o/w Convenience		424	-11.3%	+4.7%
TOTAL FOOD		3,370	-8.3%	-2.4%

TOTAL ESTIMATED GROSS NON-FOOD SALES UNDER BANNER (in €m, excluding fuel)		Q2 2021	Same-store change (excl. calendar effects)	Same-store change (excl. calendar effects) over 2 years
Hypermarkets		95	-26.3%	-27.3%
Cdiscount		791	-5.3%	+14.5%
TOTAL NON-FOOD		887	-5.5%	+11.3%

TOTAL GROSS SALES UNDER BANNER (in €m, excluding fuel)		Q2 2021	Same-store change (excl. calendar effects)	Same-store change (excl. calendar effects) over 2 years
TOTAL FRANCE AND CDISCOUNT		4,257	-7.9%		-0.3%

Store network at period-end

FRANCE	30 June 2020	30 Sept. 2020	31 Dec. 2020	31 March 2021	30 June 2021
Géant Casino hypermarkets	104	105	105	104	95
o/w French franchised affiliates	4	4	4	3	3
International affiliates	6	7	7	7	7
Casino Supermarkets	415	414	419	417	422
o/w French franchised affiliates	69	68	71	68	64
International affiliates	22	23	24	25	22
Monoprix	789	791	799	806	830
o/w franchised affiliates	190	191	192	195	201
Naturalia integrated stores	181	181	184	189	203
Naturalia franchises	26	28	32	34	39
Franprix	869	869	872	877	890
o/w franchises	481	463	479	493	533
Convenience	5,134	5,166	5,206	5,311	5,502
Other businesses	219	219	233	334	320
Total France	7,530	7,564	7,634	7,849	8,059

INTERNATIONAL	30 June 2020	30 Sept. 2020	31 Dec. 2020	31 March 2021	30 June 2021
ARGENTINA	25	25	25	25	25
Libertad hypermarkets	15	15	15	15	15
Mini Libertad and Petit Libertad mini-supermarkets	10	10	10	10	10
URUGUAY	93	92	93	93	92
Géant hypermarkets	2	2	2	2	2
Disco supermarkets	29	29	30	30	30
Devoto supermarkets	24	24	24	24	24
Devoto Express mini-supermarkets	36	35	35	35	34
Möte	2	2	2	2	2
BRAZIL	1 070	1,054	1,057	1,058	1,058
Extra hypermarkets	107	104	103	103	103
Pão de Açúcar supermarkets	182	182	182	182	181
Extra supermarkets	151	147	147	147	147
Compre Bem	28	28	28	28	28
Assaí (cash & carry)	169	176	184	184	187
Mini Mercado Extra & Minuto Pão de Açúcar mini-supermarkets	238	239	236	237	236
Drugstores	122	104	103	103	102
+ Service stations	73	74	74	74	74
COLOMBIA	1 981	1,980	1,983	1,974	2,006
Éxito hypermarkets	92	92	92	92	92
Éxito and Carulla supermarkets	157	154	153	153	155
Super Inter supermarkets	69	69	69	61	61
Surtimax (discount)	1 536	1,539	1,544	1,548	1,577
o/w “Aliados”	1 459	1,465	1,470	1,476	1,505
B2B	32	34	34	34	34
Éxito Express and Carulla Express mini-supermarkets	95	92	91	86	87
CAMEROON	1	2	2	2	3
Cash & Carry	1	2	2	2	3
Total International	3,170	3,153	3,160	3,152	3,184

Consolidated income statement

In € millions		First-half 2021	First-half 2020 (restated)55
CONTINUING OPERATIONS
Net sales		14,480	16,140
Other revenue		224	245
Total revenue		14,704	16,385
Cost of goods sold		(11,071)	(12,402)
Gross margin		3,633	3,983
Selling expenses		(2,531)	(2,928)
General and administrative expenses		(657)	(656)
Trading profit		444	399
As a % of net sales		3.1%	2.5%
Other operating income		247	225
Other operating expenses		(236)	(471)
Operating profit		455	153
As a % of net sales		3.1%	1.0%
Income from cash and cash equivalents		8	9
Finance costs		(231)	(197)
Net finance costs		(224)	(188)
Other financial income		69	87
Other financial expenses		(243)	(377)
Profit (loss) before tax		57	(325)
As a % of net sales		0.4%	-2.0%
Income tax benefit (expense)		(46)	15
Share of profit of equity-accounted investees		29	15
Net profit /(loss) from continuing operations		41	(295)
As a % of net sales		0.3%	-1.8%
Attributable to owners of the parent		(35)	(340)
Attributable to non-controlling interests		76	45
DISCONTINUED OPERATIONS
Net profit (loss) from discontinued operations		(169)	(158)
Attributable to owners of the parent		(170)	(162)
Attributable to non-controlling interests		2	4
CONTINUING AND DISCONTINUED OPERATIONS
Consolidated net profit (loss)		(128)	(452)
Attributable to owners of the parent		(205)	(502)
Attributable to non-controlling interests		77	50

Earnings per share

In €		First-half 2021	First-half 2020 (restated)1
From continuing operations, attributable to owners of the parent
Basic		(0.66)	(3.48)
Diluted		(0.66)	(3.48)
From continuing and discontinued operations, attr. to owners of the parent
Basic		(2.24)	(4.98)
Diluted		(2.24)	(4.98)

Consolidated statement of comprehensive income

In € millions	For the six months ended 30 June 2021	For the six months ended 30 June 2020 (restated)56
Consolidated net profit (loss)	(128)	(452)
Items that may be subsequently reclassified to profit or loss	137	(1,184)
Cash flow hedges and cash flow hedge reserve(i)	20	(14)
Foreign currency translation adjustments(ii)	120	(1,148)
Debt instruments at fair value through other comprehensive income (OCI)	(1)	-
Share of items of equity-accounted investees that may be subsequently reclassified to profit or loss	3	(26)
Income tax effects	(5)	4
Items that will never be reclassified to profit or loss	(3)	2
Equity instruments at fair value through other comprehensive income	-	-
Actuarial gains and losses	(4)	3
Share of items of equity-accounted investees that will never be subsequently reclassified to profit or loss	-	-
Income tax effects	1	(1)
Other comprehensive income (loss) for the year, net of tax	134	(1,182)
Total comprehensive income (loss) for the year, net of tax	6	(1,634)
o/w Group share	(127)	(979)
Attributable to non-controlling interests	133	(655)

1. The change in the cash flow hedge reserve in first-half 2021 and first-half 2020 was not material.

2. The €120 million positive net translation adjustment in first-half 2021 arose mainly from the appreciation of the Brazilian real for €218 million, partially offset by the depreciation of the Uruguayan peso for -€81 million. The €1,148 million negative net translation adjustment in first-half 2020 arose primarily from the depreciation of the Brazilian and Colombian currencies (-€839 million and
   -€259 million, respectively).

Consolidated statement of financial position

ASSETS			30 June 2021	31 December 2020
In € millions
Goodwill			6,764	6,656
Intangible assets			2,126	2,061
Property and equipment			4,457	4,279
Investment property			423	428
Right-of-use assets			4,862	4,888
Investments in equity-accounted investees			214	191
Other non-current assets			1,217	1,217
Deferred tax assets			1,111	1,035
Non-current assets			21,174	20,754
Inventories			3,349	3,209
Trade receivables			860	941
Other current assets			1,967	1,770
Current tax assets			202	167
Cash and cash equivalents			2,133	2,744
Assets held for sale			1,064	932
Current assets			9,574	9,763
TOTAL ASSETS			30,748	30,517
EQUITY AND LIABILITIES			30 June 2021	31 December 2020
In € millions
Share capital			166	166
Additional paid-in capital, treasury shares, retained earnings and consolidated net profit (loss)			2,937	3,097
Equity attributable to owners of the parent			3,103	3,263
Non-controlling interests			2,998	2,856
Total equity			6,101	6,118
Non-current provisions for employee benefits			348	351
Other non-current provisions			380	374
Non-current borrowings and debt, gross			7,244	6,701
Non-current lease liabilities			4,260	4,281
Non-current put options granted to owners of non-controlling interests			53	45
Other non-current liabilities			173	201
Deferred tax liabilities			540	508
Total non-current liabilities			12,998	12,461
Current provisions for employee benefits			12	12
Other current provisions			163	189
Trade payables			5,392	6,190
Current borrowings and debt, gross			1,823	1,355
Current lease liabilities			706	705
Current put options granted to owners of non-controlling interests			119	119
Current tax liabilities			64	98
Other current liabilities			3,170	3,059
Liabilities associated with assets held for sale			201	210
Current liabilities			11,650	11,937
TOTAL EQUITY AND LIABILITIES			30,748	30,517

Consolidated statement of cash flows

In € millions		First-half 2021	First-half 2020 (restated)57
Profit (loss) before tax from continuing operations		57	(325)
Profit (loss) before tax from discontinued operations		(209)	(104)
Consolidated profit (loss) before tax		(151)	(429)
Depreciation and amortisation expense		654	664
Provision and impairment expense		(81)	94
Losses (gains) arising from changes in fair value		(4)	73
Expenses (income) on share-based payment plans		9	6
Other non-cash items		(13)	(31)
(Gains) losses on disposals of non-current assets		(97)	(49)
(Gains) losses due to changes in percentage ownership of subsidiaries resulting in acquisition/loss of control		11	20
Dividends received from equity-accounted investees		10	15
Net finance costs		224	188
Interest paid on leases, net		154	165
Non-recourse factoring and associated transaction costs		23	32
Disposal gains and losses and adjustments related to discontinued operations		90	15
Net cash from operating activities before change in working capital, net finance costs and income tax		829	764
Income tax paid		(87)	(45)
Change in operating working capital		(906)	(766)
Income tax paid and change in operating working capital: discontinued operations		(97)	105
Net cash from operating activities		(262)	58
of which continuing operations		(45)	42
Cash outflows related to acquisitions of:
§ Property, plant and equipment, intangible assets and investment property		(499)	(447)
§ Non-current financial assets		(3)	(472)
Cash inflows related to disposals of:
§ Property, plant and equipment, intangible assets and investment property		19	169
§ Non-current financial assets		158	254
Effect of changes in scope of consolidation resulting in acquisition or loss of control		(9)	165
Effect of changes in scope of consolidation related to equity-accounted investees		(6)	(10)
Change in loans and advances granted		(16)	(21)
Net cash from/(used in) investing activities of discontinued operations		(49)	(14)
Net cash from (used in) investing activities		(404)	(375)
of which continuing operations		(355)	(361)
Dividends paid:
§ to owners of the parent		-	-
§ to non-controlling interests		(77)	(33)
§ to holders of deeply-subordinated perpetual bonds		(32)	(33)
Increase (decrease) in the parent's share capital		-	-
Transactions between the Group and owners of non-controlling interests		3	(21)
(Purchases) sales of treasury shares		-	(1)
Additions to loans and borrowings		2,636	1,064
Repayments of loans and borrowings		(1,998)	(837)
Repayments of lease liabilities		(321)	(311)
Interest paid, net		(335)	(455)
Other repayments		(13)	(9)
Net cash used in financing activities of discontinued operations		(6)	(27)
Net cash used in financing activities		(143)	(664)
of which continuing operations		(138)	(637)
Effect of changes in exchange rates on cash and cash equivalents of continuing operations		74	(398)
Effect of changes in exchange rates on cash and cash equivalents of discontinued operations		-	-
Change in cash and cash equivalents		(735)	(1,379)
Net cash and cash equivalents at beginning of period		2,675	3,530
of which net cash and cash equivalents of continuing operations		2,675	3,471
of which net cash and cash equivalents of discontinued operations		(1)	59
Net cash and cash equivalents at end of period		1,940	2,151
of which net cash and cash equivalents of continuing operations		1,941	2,086
of which net cash and cash equivalents of discontinued operations		(1)	65

Analyst and investor contacts
-

Lionel Benchimol
+ 33 (0)1 53 65 64 17 - lbenchimol@groupe-casino.fr

or
+ 33 (0)1 53 65 24 17 - IR_Casino@groupe-casino.fr

Press contacts
-

Casino Group - Communications Department

Stéphanie Abadie
+ 33 (0)6 26 27 37 05 - sabadie@groupe-casino.fr

or
+ 33(0)1 53 65 24 78 - directiondelacommunication@groupe-casino.fr

-

Agence IMAGE 7

Karine Allouis
+33 (0)1 53 70 74 84 - kallouis@image7.fr

Franck Pasquier
+ 33(0)6 73 62 57 99 - fpasquier@image7.fr

Disclaimer

This press release was prepared solely for information purposes, and should not be construed as a solicitation or an offer to buy or sell securities or related financial instruments. Likewise, it does not provide and should not be treated as providing investment advice. It has no connection with the specific investment objectives, financial situation or needs of any receiver. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein. Recipients should not consider it as a substitute for the exercise of their own judgement. All the opinions expressed herein are subject to change without notice.

---

¹ France Retail excluding GreenYellow, real estate development and Vindémia (sold on 30 June 2020)

² Source: Nielsen, YTD P06 2021, over two years

³ Same-store change in sales for the four weeks to 25 July 2021

⁴ Contribution to consolidated EBITDA. Data published by the subsidiary: EBITDA of €49m (stable vs. H1 2020)

⁵ Including €129m relating to the sale of shares and an additional €50m notably linked to the renewal of commercial agreements between Cdiscount, Casino banners and FLOA

⁶ As part of the real estate disposals made in 2019

⁷ Secured gross debt to EBITDA after lease payments on France Retail + E-commerce perimeter excluding GreenYellow (see press release dated 19 July 2021)

⁸ Announcement of the Assaí spin-off on 9 September 2020

⁹ Organic growth excluding fuel and calendar effects

¹⁰ Of which €6m in tax credits

¹¹ The difference compared to the change in net debt excluding IFRS 5 (-€158m) is mainly due to the decrease in IFRS 5 related to the sale of Leader Price, which was classified under IFRS 5 at June 30, 2020

¹² Excluding fuel and calendar effects

¹³ Data published by the subsidiary

¹⁴ Contribution to consolidated EBITDA. Data published by the subsidiary: EBITDA of €37m in H1 2021

¹⁵ Tax credits restated by subsidiaries in the calculation of adjusted EBITDA

¹⁶ See definition on page 13

¹⁷ Underlying diluted EPS includes the dilutive effect of TSSDI deeply-subordinated bond distributions

¹⁸ France Retail operations excluding Vindémia, real estate development and GreenYellow

¹⁹ Food E-commerce = E-commerce France excluding Cdiscount

²⁰ Source: Nielsen, YTD P06 2021, over two years

²¹ Data published by the subsidiary

²² Data published by the subsidiary. Contribution to consolidated EBITDA: €48m (€43m in H1 2020)

²³ Data published by the subsidiary. Contribution to consolidated EBITDA: €28m (€34m in H1 2020)

²⁴Announcement of the spin-off on 9 September 2020

²⁵ A subsidiary of rating agency Moody’s (Vigeo Eiris rating, December 2020)

²⁶ Scopes 1 and 2

²⁷ In France

²⁸ Including €129m relating to the sale of shares and an additional €50m notably linked to the renewal of commercial agreements between Cdiscount, Casino banners and FLOA

²⁹ By 2025

³⁰ As part of the real estate disposals made in 2019

³¹ May 2025 if Term Loan B, maturing in August 2025, is not repaid or refinanced at that date

³² Same-store change excluding fuel and calendar effects

³³ Data published by the subsidiary

³⁴ France scope excluding GreenYellow for which development and transition to a company-owned asset model is ensured by its own resources

³⁵ Unaudited data, scope as defined in refinancing documentation of November 2019 with mainly Segisor accounted for within the France Retail + E-commerce scope

³⁶ Interest paid on lease liabilities and repayment of lease liabilities as defined in the documentation

³⁷ EBITDA after lease payments (i.e., repayments of principal and interest on lease liabilities)

³⁸ Loans and other borrowings

³⁹ At 30 June 2021

⁴⁰ Organic change excluding fuel and calendar effects

⁴¹ Other financial income and expenses have been restated, primarily for the impact of discounting tax liabilities, as well as for changes in the fair value of the total return swaps on GPA shares

⁴² Income taxes have been restated for the tax effects of other operating income and expenses and of the restatements of financial income and expenses described above, as well as for the effects of IFRIC 23 "Uncertainty about tax treatments"

⁴³ Non-controlling interests have been restated for the amounts relating to the restated items listed above

⁴⁴ Before dividends to the owners of the parent and holders of TSSDI deeply-subordinated bonds, excluding financial expenses, including lease payments (repayments of lease liabilities and interest on leases)

⁴⁵ Excluding interest on lease liabilities

⁴⁶ Including -€248m related to the unwinding of the GPA TRS

⁴⁷ Including €149m in disbursements from the segregated account dedicated to debt repayment

⁴⁸ Including -€149m in disbursements from the segregated account, and -€288m from discontinued operations (effect of seasonality and operating losses of Leader Price before conversion of stores to the Aldi brand, scheduled to end in September 2021)

⁴⁹ Including a €99m earn-out in relation with the Apollo and Fortress JVs

⁵⁰ Excluding fuel and calendar effects

⁵¹ Excluding Codim stores in Corsica: 8 supermarkets and 4 hypermarkets

⁵² Other: mainly Vindémia and restaurants

⁵³ Net sales on a same-store basis include the same-store performance of franchised stores

⁵⁴ Data published by the subsidiary

⁵⁵ The financial statements for first-half 2020 have been restated to reflect the retrospective application of the IFRIC IC decision with regard to the enforceable period of a lease and the amortisation period of fixtures in accordance with IFRS 16 – Leases

⁵⁶The financial statements for first-half 2020 have been restated to reflect the retrospective application of the IFRIC IC decision with regard to the enforceable period of a lease and the amortisation period of fixtures in accordance with IFRS 16 – Leases

⁵⁷ The financial statements for first-half 2020 have been restated to reflect the retrospective application of the IFRIC IC decision with regard to the enforceable period of a lease and the amortisation period of fixtures in accordance with IFRS 16 – Leases

Attachment

• 20210729 - PR - H1 2021 Results