CASINO: 2009 Fourth-Quarter sales up 2.2%

Good performance by the convenience formats and Cdiscount in France
Sustained growth in emerging markets, both in South America and Asia

Full-year sales stable on an organic basis excluding petrol

Regulatory News:

CASINO (Paris:CO):

⁽¹⁾ Super de Boer was sold in late 2009. In accordance with International Financial Reporting Standard IFRS 5 "Non-Current Assets Held for Sale and Discontinued Operations", the company''s sales have been recognised under "Discontinued operations" since 1 January 2009. Super de Boer 2008 sales were reclassified accordingly.

⁽²⁾ IFRS 8 "Operating Segments" and IFRIC Interpretation 13 "Customer Loyalty Programmes" have been applied by the Group from 1 January 2009. Comparative information for 2008 were adjusted accordingly (see appendix for details).

⁽³⁾ Based on constant scope of consolidation and exchange rates.

Consolidated net sales rose by 2.2% on a reported basis in the fourth quarter of 2009. Changes in the scope of consolidation had a 1.5% positive impact, as the consolidation of Ponto Frio by Grupo Pão de Açúcar from 1 July 2009 largely offset the impact of the deconsolidation of two Franprix-Leader Price franchisees. The sharp increase in the Brazilian real and appreciation of the Colombian peso offset declines in the Thai baht, Argentine peso and Venezuelan bolivar fuerte, resulting in a positive currency effect of 0.6%.

Petrol sales had a slightly positive impact of 0.3% during the period, while the calendar effect was neutral for the Group as a whole.

Organic sales excluding petrol were stable, an improvement over the 0.9% decrease reported in the third quarter of 2009.

In France, sales were down 2.7% on an organic basis excluding petrol, versus a 3.2% decline in the third quarter.

• The convenience formats continued to demonstrate good resilience, with Casino Supermarkets, Monoprix and Franprix reporting stable total sales over the period.
• Cdiscount maintained solid sales growth over the period. Sales grew double-digit over the full year, consolidating the company''s lead in online B to C sales in France. In all, Cdiscount reported over 1 billion euros in sales including VAT in 2009.
• Géant Casino''s performance tracked the trend observed in the first nine months. The banner pursued its controlled marketing strategy, as reflected in moderate promotional activity and further targeted price cuts.
• The trend in same-store sales at Leader Price was on a par with the previous quarter. The entire discount sector continued to suffer from scaled-back spending by its traditional customer base, which has been harder hit by the recession.

International operations reported a faster 4.8% increase in organic growth, up from 3.5% in the third quarter.

• In South America, organic growth came to a robust 4.9%, lifted by a continuing strong growth in same-store sales in Brazil (14.1%). The sales trend improved in Colombia, offsetting weaker business in Venezuela.
• In Asia, sales improved tangibly, up 6.7% on an organic basis after declining 0.9% in the third quarter, reflecting a recovery in same-store sales in Thailand and very strong growth in Vietnam.

International operations, which accounted for 37% of consolidated sales over the period, confirmed their role as a growth driver.

Consolidated sales for full-year 2009 were stable on an organic basis excluding petrol, a performance reflecting the good positioning of the business portfolio:

• A mix heavily weighted towards convenience and discount formats, which are both promising and profitable,
• An unrivalled presence in urban convenience stores,
• Leadership in online non-food sales,
• An international presence focused on high potential countries.

In a difficult economic environment, the Group stepped up deployment of action plans to enhance the shopper appeal of its banners and increase its operating efficiency.

The Group is in line with its objectives in terms of cost savings, inventory reductions and capital expenditure discipline.

Financial flexibility will be enhanced by the improvement in free cash flow⁽¹⁾ generation and the €1 billion asset disposal programme to be implemented by the end of 2010. With the sale of Super de Boer and real estate assets, more than half of the programme had been completed at the end of 2009.

The Group therefore confirms its objective of improving the net debt/EBITDA ratio at the end of 2009 and of reducing the ratio to less than 2.2x by the end of 2010.

The full-year results will be published on 4 March 2010.

⁽¹⁾Free cash flow = current operating cash flow before tax, less capital expenditure, changes in WCR, income tax paid and net interest paid

FRANCE

Sales in France declined by 3.3% during the quarter. Changes in the scope of consolidation (mainly the deconsolidation of two Franprix–Leader Price franchisees at end 2008) reduced growth by 1.1%, while petrol sales had a positive 0.4% impact.

On an organic basis and excluding petrol, sales were down 2.7% over the period. Part of the decline was due to the termination of affiliate contracts, mainly with Coop de Normandie, which had a 0.6% negative impact on sales growth.

⁽¹⁾ International Financial Reporting Standard IFRS 8 "Operating Segments" and IFRIC Interpretation 13 "Customer Loyalty Programmes" have been applied by the Group from 1 January 2009. 2008 data were adjusted accordingly (see details in appendix)

⁽²⁾ Negative impact of affiliate contract terminations: respectively 1.3% on hypermarket sales and 1.3% on Casino Supermarkets sales in Q4 2009, and 1.3% on hypermarket sales and 1.3% on Casino Supermarkets sales for the full year 2009.

Franprix-Leader Price

Same-store sales contracted by 1.2% at Franprix. Footfalls were stable during the period, reflecting the banner''s shopper appeal, which was further enhanced by the deployment of the new concept that has delivered very satisfactory results (double-digit growth in renovated stores). The banner accelerated expansion with 41 stores opened during the fourth quarter, for a total of 92 new outlets over the full year (of which 80 openings and 12 conversions).

Same-store sales at Leader Price tracked third-quarter trends, declining 11%. The entire discount retailing segment continues to be penalized as its traditional customers cut back on spending, leading to further declines in the average basket.

Leader Price opened 22 stores during the period, compared with 27 over the first nine months. The banner also continued to rationalize its store network by closing nine stores and transferring five urban outlets.

Led by the banner''s sustained expansion, Leader Price market share trend improved at the end of the year, to hold steady in the fourth quarter. The banner price competitiveness will be further enhanced as the banner will reinvest purchasing gains resulting from the pooling of the Group''s private labels.

In all, and excluding the impact of deconsolidating two franchisees, Franprix-Leader Price sales ended the period down 2.6%.

The two banners will step up their expansion, which will continue to be a significant growth driver.

Hypermarkets

Géant Casino same-store sales declined by 6% excluding petrol during the quarter. The average basket was stable (down 0.2%) and footfalls contracted by 5.8%.

Food sales were down 5.1%. In a more competitive environment, Géant Casino carefully calibrated its promotional strategy to give priority to permanent price cuts. In 2010, the banner will step-up this targeted price-cut policy thanks to the purchasing gains resulting from the pooling of the Group''s private labels and to the partial shift in promotional resources.

Non-food sales were down by 7.8%, a more limited decline versus the first nine months (down 10.4%), with apparel and multimedia leading the improvement.

Géant Casino will continue in 2010 to optimise capital employed by reducing selling space and repositioning its offer on the highest revenue and margin categories, such as apparel, home and leisure.

Convenience stores

Supermarkets

Casino Supermarkets'' same-store sales declined by 3.4% excluding petrol, versus a 4.4% decline in the third quarter. The average basket shrank by 1.7%, in line with the previous quarter. Footfalls were down just 1.8% compared with a decline of 2.6% in the third quarter, reflecting the effectiveness of the banner''s marketing initiatives.

Total sales excluding petrol decreased by 2.1% over the period.

Market share held firm during the quarter and over the year as a whole.

Monoprix

Monoprix''s same-store sales recorded a tangible improvement, easing back just 0.6% in the last three months of the year, compared with a 2.7% decline in the third quarter, driven by a good performance in apparel and satisfactory food sales. As these results show, the banner is reaping the rewards of its differentiated positioning.

Total sales increased by 0.4% over the quarter.

Superettes

Superette sales declined by 5%. The store base was further optimised during the period, with 186 openings and 114 closures.

Other businesses

Cdiscount enjoyed solid sales growth in the fourth quarter and reported a double-digit increase over the full year. This good performance reflected the company''s very attractive price positioning and fast market response. Cdiscount has also successfully developed new offerings – including apparel, footwear, wine and travel – as well as new services, such as video on demand. All of these factors have enhanced the banner''s leadership in online B to C sales in France.

Casino Restauration reported another quarter of growth, confirming the improved trend observed in the third quarter.

In all, sales by the other businesses rose by 5.7%.

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INTERNATIONAL

International sales rose by 13.4% in the fourth quarter. Changes in the scope of consolidation had a positive impact of 6.8%, primarily reflecting the consolidation of Ponto Frio by Grupo Pão de Açúcar from 1 July 2009. The currency effect was a positive 1.8%, due to the sharp increase in the Brazilian real and the appreciation of the Colombian peso against the euro, partially offset by the decline in the Venezuelan, Thai and Argentine currencies.

Organic growth stood at 4.8%, versus 3.5% in the third quarter, reflecting strong momentum in South America (up 4.9%) and a significantly improved trend in Asia (up 6.7% after falling 0.9% in the third quarter). Operations in the key countries (Brazil, Colombia, Thailand and Vietnam) all reported higher sales.

Operations in South America continued to deliver robust same-store sales, which gained 3.8% during the period.

Same-store sales for GPA in Brazil continued to grow at a strong pace (up 14.1%), both in food and non-food, reflecting the company''s effective marketing strategy. Total sales in Brazil increased by 44.6%*, lifted by the consolidation of Ponto Frio. The joint venture between Globex (Ponto Frio) and Casas Bahia''s retail activities has made GPA the unrivalled leader in the household and electronic appliances market, with a market share of 26%, and strengthened its position as Brazil''s top-ranked retailer.

In Colombia, Exito''s same-store sales trend improved noticeably, reflecting successful marketing campaigns during the period. Two hypermarkets were opened in the fourth quarter.

Sales in Venezuela slumped in the fourth quarter against a backdrop of economic recession and currency crisis.

In Asia, same-store sales rose 4.5% after declining 5.2% in the third quarter thanks to a sharp upturn in sales at Big C in Thailand and very strong growth in Vietnam. In all, sales in Asia grew by a sustained 6.7% at constant exchange rates.

Operations in the Indian Ocean performed satisfactorily, both on a same-store basis (down 0.6%) and on an organic basis (up 0.6%).

* data published by the company

Main changes in the scope of consolidation

• Deconsolidation of two franchisees in the Franprix-Leader Price sub-group as of end December 2008.
• Consolidation of Ponto Frio by GPA since 1 July 2009.
• A subsequent capital increase by GPA, which had the effect of reducing Group Casino''s stake from 35.0% at end June 2009 to 33.7% as of 21 September 2009.
• Following Exito''s share issue and renegotiation of the put option on Carulla Vivero, Casino''s interest in Exito declined from 61.2% to 54.8% at 31 December 2009.
• Super de Boer was sold in late 2009. In accordance with International Financial Reporting Standard IFRS 5 "Non-Current Assets Held for Sale and Discontinued Operations", the company''s sales have been recognised under "Discontinued operations" since 1 January 2009.

* Sales in Venezuela were translated with the official 2009 exchange rate. In light of the devaluation in January 2010, 2010 sales in the region will be translated at the 2010 exchange rate.

Store network

Appendix: Application of IFRS 8 and IFRIC 13

International Financial Reporting Standard 8 "Operating Segments" and IFRIC Interpretation 13 "Customer Loyalty Programmes" were applicable by the Group as from January 1^st 2009. This has resulted in two changes in accounting method, with 2008 data adjusted to reflect retrospective application for comparison purposes.

• IFRS 8 replaced IAS 14 "Reporting Financial Information by Segment." While the standard does not have any impact on the Group''s performance or financial situation, it has led to a change in the way the reported data are presented. In practice, the main change in the 2008 sales figures concerns the presentation of net sales to external customers, primarily by Easydis, which are now recognised in "Other businesses" instead of being allocated among the various French banners as previously.
• IFRIC Interpretation 13 requires entities to recognise the fair value of the consideration granted to customers under loyalty programmes (such as award credits or purchase coupons) as a separately identifiable component of the sales transaction in which they are granted. In practice, this leads to revenue being reduced at the time of the grant and increased when the award credits are redeemed. Until 2008, the cost of these loyalty programmes was deducted from trading profit.

*Adjusted to take into account the consolidation of Naturalia.

* Adjusted to take into account the consolidation of Naturalia.

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