Casino: redemption of Quatrim 2024 bond for cancellation – 11/11/2022 at 2:40 pm

(AOF) – Casino bought back on the market a nominal amount of 67.05 million euros of covered bonds of Quatrim 2024. The bonds bought back will be canceled in the coming days. The total nominal value of the Quatrim 2024 covered bonds will be reduced to €652.775 million after the cancellation. Redemptions of the Quatrim 2024 covered bonds are funded through a senior secured escrow account. As of November 10, 2022, the secured senior escrow account balance is gone.

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Main points

– Food distribution group created in 1898 present in France, Brazil, Colombia and Uruguay;

– Distributor weighing €30.5 billion organized in 3 branches: France Retail under the Casino, Monoprix, Franprix and Naturalia brands, Latin Retail in Latin America under Assaï, GPA and Extra brands in Brazil, Exito and Libertad in Colombia, Disco and Deveto in Uruguay and, finally, the new activities – Green Yellow for solar energy and CDiscount for e-commerce;

– Business model based on 5 pillars: a portfolio of buoyant formats in France, the leading food and non-food e-commerce offer, the development of new growth levers, a significant stake in the main distribution players from Latin America, and strengthening the group structure;

– Capital is locked in 52.3% of the company holding Rallye (62% of voting rights), itself a subsidiary of Euris, held by Jean-Charles Naouri, Chairman and CEO of the 13-member Board of Directors ;

– The financial situation is still tense with €5.6 billion in shareholders’ equity and, at the end of June, €2.3 billion in cash against net debt of €7.5 billion.

Challenges

– Strategic plan to reduce the share of hypermarkets to 15%, 50% growth in organic products offering to €1.5 billion, development in e-commerce and, for new activities, expansion of network photovoltaics installed and growing data center revenues;

– Dynamic innovation strategy: data management and monetization within RelevanC, cloud offer with ScaleMax, partnerships with Google Cloud and Accenture in distribution, Gorillas in quick-commerce in France and Rappi in Colombia – deployment of C Discount offer – digitalization logistics and delivery platforms with Amazon and Ocado;

– Environmental strategy: use of “Green Yellow” photovoltaic expertise with a pipeline of 4.5 GWp, boosted by a fundraising in February, and its partnerships (Schneider Electric and Amazon web services) – aims to reduce CO2 emissions of 18% in 2025 and 38% in 2030 (vs 2015);

– Simplification of Latin American assets by directly holding 41% in GPA and Assai;

– Continuation of the disposal plan, for a value of more than €4 billion, including the upcoming sale of Green Yellow;

– Development in vibrant formats in France, premium and close to Monoprix, Naturalia and Franprix brands, etc. (8% of the French market), in shopping centers and in the transformation of hypermarkets, formerly Géant Casino, in Super Fresh Casino supermarkets.

Challenges

– Repeated speculation on a merger with Alibaba, Amazon and the intentions of the Czech Kretinski, who already holds 4% of the capital;

– Effects of the openings of “small” stores in France, of the openings of Assai distributors in Latin America; and, from 2

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half of 2022, of the C Discount savings plan;

– After a 15% increase in sales and a net loss in 1

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semester, 2022 goal: in 2

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semester: 800 openings in convenience formats (Monop’, Franprix, Naturalia, Spar, Vival, etc.), mainly franchises (376 at the end of June) – development of the most buoyant retail and e-commerce activity (Casino Hyper Expenses, Gorillas, Amazon and Ocado partnerships) – throughout the financial year: high levels of profitability and improvement in free cash flow.

Urban transformation to enhance real estate heritage

Some initiatives are intended to increase the land around the hypermarkets and/or to play with the mix of uses (commerce, offices, housing and even urban logistics). Nhood, the company launched by the Mulliez family, has the mission of transforming mixed neighborhood sites owned by property companies Auchan, Ceetrus and Nodi, and the real estate assets of other companies in group. This will speed up this business of urban regeneration. The Mulliez family plans to invest 1.8 billion euros between 2022 and 2026 in its real estate projects. This goal should be revised upwards. Carrefour, for its part, joined forces with promoter Altarea in early 2021 to turn commercial areas into mixed neighborhoods.

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