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Corporate Presentation Legal disclaimer This document does not constitute or form part of any purchase, sales or Exchange offer, nor is it an invitation to draw up a purchase sales or exchange offer, or advice on any stock issued by Distribuidora


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SLIDE 1

Corporate Presentation

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SLIDE 2

Legal disclaimer

This document does not constitute or form part of any purchase, sales or Exchange offer, nor is it an invitation to draw up a purchase sales or exchange offer, or advice on any stock issued by Distribuidora Internacional de Alimentación, S.A. (“DIA” or the “Company”). Nor shall this document or any part of it form part of any offer for sale or solicitation of any offer to buy any securities the basis of or be relied on in connection with any contract or commitment to purchase shares. DIA cautions that this document contains forward-looking statements and information relating to DIA and include, without limitation, estimates, projections or forecast relating to possible future trends and performance of DIA that are based on the beliefs of its management as well as assumptions made and information currently available to the Company. Such statements reflect the current views of the Company with respect to future events and are subject to risks, uncertainties and assumptions about the Company and its subsidiaries, including, among other things. In light of these risks, uncertainties and assumptions, the events or circumstances referred to in the forward-looking statements may not occur. None of the future projections, expectations, estimates, guidance or prospects in this presentation should be taken as forecasts or promises nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates, guidance or prospects have been prepared are correct or exhaustive or, in the case of the assumptions, fully stated in the presentation. These forward looking statements speak only as of the date on which they are made and the information, knowledge and views available on the date on which they are made; such knowledge, information and views may change at any time. Forward-looking statements may be identified by words such as “expects”, “anticipates”, “forecasts”, “estimates” and similar expressions. Current and future analysts, brokers and investors must operate only on the basis of their own judgment taking into account this disclaimer, as to the merits or the suitability of the securities for its purpose and only on such information as is contained in such public information having taken all such professional or other advice as its considers necessary or appropriate in the circumstances and not reliance on the information contained in the presentation. In making this presentation available, DIA gives no advice and makes no recommendation to buy, shell or otherwise deal in shares in DIA or in any other securities or investments whatsoever. These analysts, brokers and investors must bear in mind that these estimates, projections and forecasts do not imply any guarantee of DIA´s future performance and results, price, margins, exchange rates, or other events, which are subject to risks, uncertainties and other factors beyond DIA´s control, such that the future results and the real performance could differ substantially from these forecasts, projections and estimates. The risks and uncertainties which could affect the information provided and very difficult to anticipate and predict. DIA does not assume the obligation of publicly reviewing or updating these statements in case unforeseen changes or events occur which could affect these statements. DIA provides information on these and other factors which could affect the business and the results in the documents it presents to the CNMV (Comisión Nacional de Mercado de Valores) in Spain. Accordingly, these estimates, projections and forecast must not be taken as a guarantee of future results, and the directors or managers are not responsible for any possible deviation which could arise in terms of the different factors which influence the future performance of the company. None of the Company nor any of its employees, officers, directors, advisers, representatives, agents or affiliates shall have any liability whatsoever (in negligence or otherwise, whether direct or indirect, in contract, tort or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document. Certain information contained in this presentation is based on management accounts and estimates of the Company and has not been audited or reviewed by the Company’s auditors. Recipients should not place undue reliance on this information. This presentation includes certain non-IFRS financial measures or expressions (gross sales under banner, comparable growth of gross sales under banner, adjusted EBITDA, adjusted EBIT, etc.) which have not been subject to a financial audit for any period. The information contained in this presentation does not constitute investment, legal, accounting, regulatory, taxation or other advice and the information does not take into account your investment objectives or legal, accounting, regulatory, taxation or financial situation or particular needs. You are solely responsible for forming your own opinions and conclusions on such matters and the market and for making your own independent assessment of the information. You are solely responsible for seeking independent professional advice in relation to the information contained herein and any action taken on the basis of the information contained herein. No responsibility or liability is accepted by any person for any of the information or for any action taken by you or any of your officers, employees, agents or associates on the basis of such information.

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SLIDE 3

Index

02 Key Investment Highlights 8 03 Financial review 25 01 Introduction 4 04 Appendix - additional information 28

slide-4
SLIDE 4

Introduction

01

slide-5
SLIDE 5

DIA at a glance

A story of profitable growth in food retail

Notes

  • 1. Excluding France, Turkey and China; 2. Ex-currency; 3. Top 100 global franchises (Franchise Direct);
  • 4. By # of publicly published franchised stores; 5) Weight in sales of FMCG in Spain

Continued growth profile1 (#, €m) Key facts Global and diversified footprint Discounter of reference in largest markets 1. 1. #1 #1 globa bal l liste sted d proxim ximit ity y discount

  • unter

2. Top 20 franchisor worldwide3/ #1 in food retail in Europe4 3. Loyal customer base (+75% sales through DIA card) 4. Innovation focus (+50% private label penetration5) SIZABLE AND UNIQUE BUSINESS MODEL… 5. 5. EUR UR10 10.3bn .3bn gross ss sale les s under r banne ner r / EUR UR8.7 8.7bn bn net sale les s 6. EUR628m adjusted EBITDA (7.2% margin) 7. 19.4% ROI and 1.4x net debt / adjusted EBITDA …FUELLED BY INDUSTRY-LEADING FINANCIAL RESULTS DISCOUNTERS MARKET POSITION

IBERIA EMERGING

FOOD RETAIL MARKET POSITION #1 #3 #3 #5 #1 #4 #1 #5

Source: Kantar Worldpanel, Nielsen

# STORES ADJUSTED EBITDA GROSS SALES UNDER BANNER

34% 66%

2016

EUR10.3bn 19% 81%

2016

EUR628m

26% 74%

2016

7,420

49% 51%

2016

7,420

Company-owned Franchise Iberia Emerging

7,420 4,355

2016

# STORES ADJUSTED EBITDA GROSS SALES UNDER BANNER

2011 2016 2011

10,314 7,810 628 471

2016 2011

slide-6
SLIDE 6

Review of DIA’s timeline

Building an Iberian leader

(80’s & 90’s)

International expansion

(2000’s)

Developing new 2P (price & proximity) format and refocusing on core markets

(2010’s) 1979

Creation of DIA by Promodès in Spain

1989

New model: the DIA franchise

1993

First store

  • pened in

Portugal

1997

First DIA store in Argentina

2000

Integration in Carrefour

2001

First DIA store

  • pened in Brazil

(Sao Paulo)

2003

Establishment in China

2011

IPO in the Spanish Stock Exchange Rio Grande do Sul

  • pening

2014

Exit from France El Árbol acquisition Bahia region opening

2013

Exit from Turkey Minas Gerais region

  • pening

Acquisition of Schlecker Iberia

2015

Acquisition of 144 Eroski stores Launch of La Plaza banner Closing of procurement agreements (Eroski, Intermarché and Casino)

2016

DIA on Amazon Prime Now First stores in Paraguay (MFs) Opening in Rio de Janeiro

2017

Private label agreement with Eroski

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SLIDE 7

DIA’s geographical reach

(December 2016)

Notes

  • 1. Paraguay master franchise operations started in late 2016

Key facts #Total Stores #Franchises Gross Sales(€m) Discounter market position 623 256 848 #3 Key facts # Total Stores # Franchises Gross Sales(€m) Discounter market position 872 576 1,643 #1 Key facts #Total Stores #Franchises Gross Sales(€m) Discounter market position 1,050 671 1,857 #1 Key facts #Total Stores #Franchises Gross Sales(€m) Discounter market position 4,875 2,147 5,967 #1

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SLIDE 8

Key Investment Highlights

02

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SLIDE 9

Key investment highlights

1

Leading listed discounter rightly focused on offering the most valuable attributes for today’s customers: Price & Proximity

2

Multi-banner, multi-local, customer-centric and innovative business model well-fitted to capture digital

  • pportunities

3

Flexible and cost-efficient

  • perations levered by a

sizeable entrepreneurial network, delivering higher stable margins and superior returns on investment

4

Systematic delivery of

  • rganic and inorganic

growth with strong

  • utlook

5

Experienced management team with a defined strategy and strong execution track-record

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SLIDE 10

Leading listed discounter…

[#1] listed discounter worldwide, having significantly gained market share in the last few years

1

Global discounters ranking (by # stores; ‘000)

Source Company fillings; Lidl and Aldi based on latest info available (2014)

#1 #3

10,006 9,937 7,420 6,146 3,107

DIA’s market share gain in its largest geographies #1 #1 #1 #1 #1 #1 7.1%

2011

8.6%

2016

4.8%

2011

7.0%

2016

6.0%

2011

12.4%

2016

#

DIA’s discounter position Top 5 players market share

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SLIDE 11

…rightly focused on core customer values: Price & Proximity

Proximity stores as the most resilient format and expected to drive global food retail growth in the mid-term

Current trends in the global food retail sector… …support DIA’s long-term strategic positioning Mature e market ets Emerging market ets

  • Agein

ing populatio ion

  • Higher shoppin

ing frequency

  • Less

s people le per r home / reduced stora rage capacit ity

  • Stagnatio

ion of pers rsonal l income / valu lue-fo for-money y approach

  • Unemploym

yment remains s high in certa rtain geographie ies

  • More

re women in the work rkfo forc rce

  • Incre

rease sed weight of modern distrib ibutio ion

  • Risin

ing of oil l and energy rgy costs

  • Incre

rease se of urban popula latio ion

  • Rise of middle

le class ss

  • Higher pers

rsonnel l costs sts

Source Euromonitor

SPAIN BRAZIL ARGENTINA

7%

5% 2% (8%) (2%)

(1%)

11-16 CAGR 16-21 CAGR

8%

6% 6% (9%) (6%)

(2%)

11-16 CAGR 16-21 CAGR

6%

(3%) (1%)

6%

11-16 CAGR 16-21 CAGR

6% 7%

Hard discounters Hypermarkets Supermarkets Department stores Convenience

Convenience & Discount Hypermarkets Supermarkets

1

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SLIDE 12

Leading price image across all geographies

Price as a differentiating feature vs. competitors

  • 100
  • 80
  • 60
  • 40
  • 20

20 40 60 80 may-13 nov-13 may-14 nov-14 may-15 dec-15 may-16 nov-16 DIA Competitor A Competitor B Competitor C Competitor D Competitor E Competitor F Competitor G

  • 40
  • 20

20 40 60 80 100 nov-13 may-14 nov-14 may-15 dec-15 may-16 nov-16 DIA Competitor A Competitor B Competitor C Competitor D Competitor E Competitor F Competitor G Competitor H

Source DIA and Kantar

  • 30
  • 20
  • 10

10 20 30 40 50 60 70 May-yy Nov-yy May-yy Nov-yy May-yy Dec-yy May-yy Nov-yy DIA Competitor A Competitor B Competitor C Competitor D Competitor E

1

May-13 Nov-13 May-14 Nov-14 May-15 Nov-15 May-16 Nov-16 May-13 Nov-13 May-14 Nov-14 May-15 Nov-15 May-16 Nov-16 Nov-13 May-14 Nov-14 May-15 Nov-15 May-16 Nov-16

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SLIDE 13

Multi-banner, multi-local approach

Multi-format/brand strategy to meet all customers’ expectations

2

Notes

  • 1. DIA operates the proximity discount format in other countries under different brands (i.e. Minipreço and Mais Perto banners in Portugal
  • 2. Includes DIA’s cash&carry stores, which represent 0.5% of the total

Multi-banner and… …multi-local approach BANNER TYPE

  • AVG. SIZE (Sqm)

Proxim ximit ity Attra ractio ion Proxim ximit ity y supermarket Proxim ximit ity HPC store re 400 400 - 1,000 700 700 - 800 800 200 200 OBJECTIVES

  • Best pric

ice

  • Fre

requency y

(market format) /

/ bask sket size (maxi

i format)

  • Complete

assor sortment

  • Best pric

ice

  • Bask

sket size ze

  • Fre

resh sh focus

  • Best pric

ice

  • Cross-se

selling lling with DIA 2016 STORE WEIGHT

79% 4% 17%

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SLIDE 14

2Pf business model focused on customer satisfaction

The 2Pf formula: price and proximity with best-in-class service provided by franchisees

2

Customers at the centre of DIA’s business model… … resulting in tangible results on customer satisfaction

Notes

  • 1. Net Promoter Score (NPS) as metric for assessing customer satisfaction. Franchisee satisfaction is measured as satisfied customers less non-satisfied

Variable remuneration at store level linked to Net Promoter Score

Net Promote romoter r Score1

(improve vement from Nov-2013 to Nov-2016) 2016) Continued digitalisation Multi-brand to meet customers’ expectations

Proximity ty Price Loya yalty ty program amme Fr Franch chise se Ef Effici cien ency cy & Innov

  • vati

ation

  • n

Multi- priva vate te label el +21.2pp +7.1pp +5.8pp

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SLIDE 15

DIA Club: much more than a loyalty programme

Loyalty programme based on targeted marketing actions driving increased sales, average basket and frequency

2

Notes

  • 1. In euro, indexed to no club members = 100
  • 2. Data refers to Sao Paulo

Targeted marketing actions bringing price advantage to card holders …widely used by our customer base… …providing tangible benefits for DIA

In In-dept epth h customer tomer know

  • wledge

edge to fine ne-tun tune targe rgeted ed and nd cost-eff effic icie ient mark rketing ting actions ions Signif gnific icant ant sav aving ings for r end-cus custom tomer r (+5% 5% per annu num) Incr crea eased ed barga gainin ining g power er against gainst suppli ppliers rs

Dual price On-site and On-line discount coupons Customer financing (FinanDIA)

Dia Club APP

Over 700k users in Spain 69% 68% 91% 86% 76%

2

FY 2016 data 8.1 1.7 4.3 4.1 18.3 Penetration (as % of sales) Active card holders (million) Average ticket (Dia brand)

100 240

No DIA Club member DIA Club customer

+140

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SLIDE 16

Outstanding private label proposition backed-by strong innovation

Successful implementation of DIA’s private label in all countries driving superior price and quality image

2

A continued and cost-efficient innovation funnel… … with proven track record

Sele lectio ion n of base products Testin ing Manufacture Finis ished hed products

  • Choic

ice and distr strib ibutio ion of product

  • Desc

scrip iptio ion of qualit ity y speci cifica ficatio ions

Notes

  • 1. Weight in Fast Moving Consumer Good sales
  • Over

r 3,000 panel tests s per r year r for r valida lidatio ion and control rol

  • Sourc

rcin ing (sele electio ction of suppli lier ers) s)

  • Logisti

istics

  • Displa

splay

  • Mult

lti-ling lingual packaging

  • Systematic

ic qualit ity y control l at DIA A ware rehouse se labs

  • Addit

itio ional control rols s in extern rnal l laboratorie ies Penetratio ion1 of DIA’S private label vs. overall market (as a % of sales)

+44% SALES IN 2016

Latest launches

39% 53% 32% 54% 7% 5% 37% 35%

DIA PL share (%) Market PL share (%)

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SLIDE 17

DIA poised for digital transformation

New measures have been implemented with a strong focus on improving operations for the 3 main pillars of the Company: customers, stores and local partners

2

Notes

  • 1. Source Nielsen (Measured as satisfied less non-satisfied)

Customers Store management Franchisees

Digital transformation

> EUR120m sales in Spain in 2020 (x6 vs 2016) Greater streamlining of tasks and improved quality of procedures + 9 pp improvement in franchise satisfaction1

  • Store

re management: pric ice, checks, s, offers

  • Inventory:

y: stock control, l, generatio ion of file les

  • Logisti

istic/Tr Transpo sport serv rvic ice: dail ily y monit itorin ing of servi rvice ce frequency y and fleet

  • Shoppin

ing list st

  • Access

ss to digit itali lise sed disc scount coupons

  • Monthly

ly expense se control

  • Digit

ital l loya yalt lty y card rd

  • +3,000 Clic

ick&Co &Coll llec ect points

  • Fra

ranchise isee App

  • Smart

rt tra rackin ing of deliv iverie ies

  • Dir

irect contact line with Regio ional l Centres

slide-18
SLIDE 18

Franchise model: a fundamental pillar of the business

Unique franchise proposition supporting a flexible and efficient operation

3

Top 20 franchisor worldwide1/ #1 in food retail in Europe2 Well balanced store mix …leading to a sustainable business model in the long run Continued increase of the franchising activity…

Notes

  • 1. Top 100 global franchises (Franchise Direct); 2. By # of publicly published franchised stores; 3. Excludes China)

% of owned and franchised stores by segment

56% 44% 5,498 35% 65% 1,922

% Owned % Franchised

  • Profit

fitable le capilla llarit ity

  • Day-to

to-day y management flexibili xibility

  • Effic

icie ient management of opera ratio ional expense ses

  • Reduced pers

rsonnel expense ses

  • Higher control

l of shri rinkage

  • Lower rotatio

ion of pers rsonnel vs. owned store res

  • Higher commit

itment / top serv rvic ice

  • Better knowle

ledge of customers

Top franchise ranking by geography and years of experience in the country

#1 #1

Over 37 years retail and 27 franchising track-record Over 23 years retail and 20 franchising track-record

#1 #1

Over 19 years retail and 15 franchising track-record Over 15 years retail and 14 franchising track-record

#1

Weight of franchises (# stores)3

34% 34% 40% 40% 44% 44% 42% 52% 42% 55% 47% 60% 49% 61%

2011 2012 2013 2014 2015 2016 2010

DIA banner stores Total stores

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SLIDE 19

Integrated and cost-efficient business model

Fully integrated and cost-effective supply chain based on our proprietary IT infrastructure resulting in recurrent industry-leading productivity and return on investment

3

Notes

  • 1. DIA based on 2016 figures; Peers’ data based on 2015 figures; employees on a FTE basis
  • 2. ROI as EBITDAR / Avg. invested capital; Avg. invested capital = Avg total assets exc cash + Avg D&A Avg account payables – Avg accrued liabilities + x5 Rent adjustment
  • 3. Carrefour, Casino, Jeronimo Martins,, Metro, Morrison, Sainsbury, Sonae and Tesco

EBITDA per employee (k€)1 Efficient and integrated supply chain Return on investment 2016 (%)1,2

Strong franchise platform Strict capital allocation process

14.7 10.2

Average peers3

+44%

19.4% 11.9%

Average peers3

+750bps

Stre reamlin lined, ed, fully ly integrated retail il capabilit litie ies Propri rietary y management ment system stem End-to to-end scope

Supplier Warehouse Transport Owned Store / Franchise

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SLIDE 20

Efficient store portfolio management

Active store portfolio management to adapt to evolving customer requirements

3

Active Store Portfolio Management

Cont ntin inued ued re rent negotiation gotiation Refur furbis bishment ment plan ans Active e store network k

  • ptimis

timisatio ion

Disciplined and smart capex allocation Rental flexibility Continued effort towards sustainability Active network right-sizing

+1,400

transfers from COCO O to COFO stores since 2011 11

+2,650 openings

nings and

+1,300 closures

ures cumulat lated d since 2011

  • 90% Lease

ase-hold

  • ld
  • Signif

gnific icant ant lessor

  • r

atomisa

  • misatio

ion

  • Cont

ntrac ract t flexib ibili ility ty < 1 ye year comm mmitme itment nt on ave average rage

  • 7.0%

0% re rental tal per squar uare meter er re reduct uctio ion n in 2011 11-16 16 period iod

Notes

  • 1. Includes rental costs related to property and equipment and revenue from lease agreements; Rents / AVG sqm Company owned company
  • perated + company owned franchise operated
slide-21
SLIDE 21

Superior, resilient and consistent financial profile

4

Notes

  • 1. Ex-currency
  • 2. Defined as Net debt / Adjusted EBITDA

Gross sales under banner evolution (EURm) Stores (#) Net debt & leverage2 evolution (EURm) Adjusted EBITDA (EURm)

2011 2012 2013 2014 2015 2016

4,355 4,617 6,102 6,938 7,337 7,420

2011 2012 2013 2014 2015 2016

7,810 8,587 9,096 9,199 10,306 10,314

2011 2012 2013 2014 2015 2016

466 529 581 589 614 628

2011 2012 2013 2014 2015 2016

576 629 651 533 1,132 878 1.2x 1.2x 1.1x 0.9x 1.9x 1.4x

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SLIDE 22

Solid track record of integrating value enhancing acquisitions

Recent acquisitions not only have helped to diversify the group but also improved core DIA business

4

Acquisition of the Iberian

  • perations of

Feb 2013

Acquisition of

Dec 2014

Acquisition of 144 stores in Iberia from

Apr 2015

Effective capital allocation at low multiples… …with tangible results and further uplift potential

  • EV of EUR69m
  • Proximity HPC

specialist

  • 1,129 COCO stores
  • Remodelling capex
  • f c.EUR30m
  • EV of EUR125m
  • Iberian supermarket

chain with large fresh offer (+50%)

  • 451 stores
  • Remodelling capex
  • f c.EUR50m
  • EUR500m tax shield
  • EV of EUR135m
  • 144 proximity

supermarkets (mainly in Madrid)

  • Remodelling capex
  • f c.EUR25m

Ke Key synergies es Curren ent t % of Integrati tion

  • Cross-sellin

ing

  • Privat

ate label development

  • Sourcing in HPC

categories es

Ke Key synergies es Curren ent t % of Integrati tion

  • Sourcing, logistics and
  • ther opex
  • Price positioning
  • Tax shield
  • New fresh categorie

ies

Ke Key synergies es Curren ent t % of Integrati tion

  • Sourcing and logistics
  • In

In-Store efficie iency cy

Transa sacti tion multi tiples es

EV/Sales EV/ EBITDA

0.19x 2.2x

EV/Sales EV/ EBITDA

0.19x Negative ebitda nm

EV/Sales EV/ EBITDA

0.27x nm

slide-23
SLIDE 23

Additional avenues of growth going forward

Review of selected profitability enhancement and top-line growth opportunities

4

Source Company information, Kantar

Product enhancement and cost optimisation Significant white-space in core markets and M&A opportunities

Dev evel elopmen ent of recentl tly-si signed ed suppl plier er allian ance ces

Sourcing agreements Private label agreement with

Conti tinued effici cien ency cy program ams

  • In-store inventory optimisation
  • Active management of store portfolio

(i.e. rents, etc)

  • Non-stop digitalisation
  • Energy saving programmes/plans

Significa cant t white te-sp spac ace e and maste ter franch chise se opportun tunities es Remar arkabl kable e conso solidat ation potenti tial al

  • Latam platform already in place
  • Macro conditions with positive prospects
  • Food retail market expected to register

healthy growth rates (+6.0% in Brazil and +6.4% in Argentina)

  • Modern distribution <50% share vs. c.80%

in Western Europe

  • Lower penetration of convenience and

discounters (c.20% vs. c.30% in Western Europe)

  • Further growth potential through master-

franchise agreements with local experienced entrepreneurs implying limited capex

  • Room for further capillarity

in Iberia supported by recovering LFLs

  • TOP 5 players in Spain

<50% market share

  • Significant market share

gain potential in Portugal

>1,100

stores by 2020

>1,500

stores by 2020

slide-24
SLIDE 24

Worked at P&G and Schweppes Founder and CEO of Openbank and Director at British American Tobacco Marketing manager at Cadbury Schweppes, Chairman & CEO

  • f RJR Nabisco and Parques Reunidos

Worked at P&G for 33 years Currently board member of Zinkia Entertainment CEO at Dufry AG Worked at TNT Leisure and Aldeasa Worked at P&G , Ahold, Digsa, CEO of Toys R Us Currently board member of Pascual General Manager of Santander , CEO of Sabadell and VP and CEO of Caixabank Current Board member of Société Générale Worked at Cadbury, Coca Cola Schweppes, Debenhams and The Original Factory Shop Currently board member of Brown Group Worked at Bain, CEO of Microsoft Iberia and VP for EMEA of Microsoft Business solutions

Experienced management team supported by an industry-leading Board

DIA’s governing bodies as an example of the highest corporate governance standards

5

Key management Independent/External Directors of the Board

NAME

Ricardo Currás

CEO

31 31 31 31

Diego Cavestany

Chief Executive New Business DIA Spain Officer

29 29 29 29

Antonio Coto

Executive Manager for Latin America and Partnerships

30 30 30 30

Juan Cubillo

Business & Merchandise Executive Manager

23 23 23 23

Javier Lacalle

Chief Resources Officer & China Executive

32 32 32 32

Amando Sánchez

Chief Services Officer & Portugal Executive

5 20 20

Faustino Dominguez

Chief Executive DIA Banner Spain Officer

26 26 26 26

YEARS AT DIA YEARS OF INDUSTRY EXP. NAME

Ana María Llopis

Non-Executive Chairwoman

Mariano Martín

Second Vice Chairman

Antonio Urcelay

Board member

Juan María Nin

Board member

Angela Spindler

Board member

Richard Golding

First Vice Chairman

Julián Díaz

Board member

SELECTED PROFESSIONAL EXPERIENCE

María Garaña

Board member

Former CFO at Inditex and El Corte Inglés Purchase Manager

Borja de la Cierva

Board member

slide-25
SLIDE 25

Financial review

03

slide-26
SLIDE 26

Flexible and efficient capital structure

Notes

  • 1. Annualised Total Shareholders Return from 5th July 2011 to 16th June 2017
  • 2. Bloomberg Europe 500 Food Retailers Index

Sustainable shareholder returns

Our efficient capital structure allows us to maintain a growing dividend policy, well above the industry average

Growing shareholder remuneration Annualised TSR1

40-50%

  • f underlying EPS

pay-out

c.EUR1bn

  • f total remuneration to

shareholders since 2011

12% 6% 1%

DIA IBEX 35 BEFOODR2

0.11

2011 2012 2013 2014 2015 2016

0.13 0.16 0.18 0.20 0.21

slide-27
SLIDE 27

Best-in-class financial metrics

DIA enjoys industry leading returns on investment and above average remuneration levels while maintaining a more conservative approach towards leverage than its peers

Notes

  • 1. Return on Investment defined as EBITDAR/Average Invested Capital. Average Invested Capital defined as Equity + Net debt + 5x Rent adjustment + Accumulated D&A
  • 2. Dividend yield based on current share price (as of April 24th 2017) and includes potential share buy backs already communicated to the market
  • 3. Market average defined as the average for Carrefour, Casino, Jeronimo Martins, Metro, Morrisons, Sainsbury, Sonae and Tesco

2016 Return on Investment (ROI) (%)1

19.4% 11.9%

INDUSTRY AVERAGE3 DIA

+750b 0bps

2016 Leverage (Net debt / Adjusted EBITDA)

1.9x 1.4x

INDUSTRY AVERAGE3 DIA

(0.5x 5x)

2016 Expected dividend yield2 (%)

4.1% 2.9%

INDUSTRY AVERAGE3 DIA

+1.2% 2%

slide-28
SLIDE 28

Appendix

Additional information

04

slide-29
SLIDE 29

Definition of Alternative Performance Measures (APM)

  • Gross sales under banner: total turnover value
  • btained in stores, including indirect taxes (sales

receipt value) in all the company’s stores, both

  • wned and franchised.
  • Net sales: sum of the net sales generated in our

integrated stores and sales to franchises.

  • LFL sales growth under banner: growth rate of

gross sales under banner at constant currency of the stores that have been operating for more than thirteen months under the same business conditions.

  • Adjusted EBITDA: operating profit after adding

back non-recurring costs, impairments, re- estimation of useful life and gains/losses arisen

  • n the disposal of assets and depreciation and

amortization of fixed assets.

  • Adjusted EBIT: operating profit after adding back non-

recurring costs, impairment and re-estimation of useful life and gains/losses arisen on the disposal of assets.

  • Underlying net profit: net income calculated on net profit

attributable to the parent company, excluding non- recurring items (restructuring costs, impairment and re- estimation of useful life, gain/losses on disposal of assets, tax litigations, exceptional financial expenses and equity derivatives), discontinued operations and the corresponding tax impact.

  • Underlying EPS: fraction of the company’s profit

calculated as underlying net profit divided by the weighted average number of shares.

  • Cash From Operations (CFO): adjusted EBITDA less

non-recurring cash items less capex on an organic basis.

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SLIDE 30

Corporate Presentation