INVESTORS PRESENTATION SUMMARY 1 LABELVIE GROUP P. 3 2 - - PowerPoint PPT Presentation

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INVESTORS PRESENTATION SUMMARY 1 LABELVIE GROUP P. 3 2 - - PowerPoint PPT Presentation

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October 2019 INVESTORS PRESENTATION SUMMARY 1 LABELVIE GROUP P. 3 2 DEVELOPMENT STRATEGY AND H1-2019 RESULTS P. 10 3 BEST FINANCIERE P. 18 4 P. 21 APPENDICES LABELVIE Capital Increase by cash Investors Presentation

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SLIDE 1

October 2019

INVESTOR’S PRESENTATION

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LABEL’VIE Capital Increase by cash – Investor’s Presentation Strictly Confidential

1 2 3

SUMMARY

LABEL’VIE GROUP DEVELOPMENT STRATEGY AND H1-2019 RESULTS

  • P. 3
  • P. 10

BEST FINANCIERE 4

  • P. 18
  • P. 21

APPENDICES

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LABEL’VIE Capital Increase by cash – Investor’s Presentation Strictly Confidential

MODERN RETAIL IN MOROCCO & LABEL’VIE GROUP KEY FACTORS OF THE INVESTMENT

INVEST in LABEL’ VIE

1

  • The retail sector, has a promising growth prospects in Morocco especially with the emergence of a middle class and

the change in consumer habits.

  • Low penetration rate: only 15% of food purchases in Morocco are made in modern retail stores,
  • Sales area per inhabitant significantly below neighboring countries

2

  • 2nd largest retailer in Morocco with 31.6% market share in terms of sales area. The group recorded 47,5 million visitors

at the end of 2018 in its 92 stores in 24 cities.

3

  • The expertise of Label 'Vie and its partner Carrefour in the retail industry, which allows the company to position itself

as a key player in Morocco, operating in 3 different formats: Supermarket, Hypermarket and Hyper-cash.

4

  • A reference shareholder, a subsidiary of Best Financière which operates in several sectors, including distribution,

commercial real estate and medical equipments.

5

  • A steady dividend distribution rate throughout the duration of the business plan.
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LABEL’VIE Capital Increase by cash – Investor’s Presentation Strictly Confidential

History of the Label’Vie Group

PREVIEW OF LABEL’VIE

Evolution of sales revenue since 2004

(MMAD)

Main players of the modern distribution in Morocco

» Label ‘Vie is the 2nd largest player in Morocco with a market share of 31% in terms of commercial surface area.

Source : Label’Vie

2016 & 2017: Excluding VLV

» Absorption of « Supermarché Souissi » ; » Signature of a franchise agreement with Carrefour. » Change of the legal name from Hyper S.A to Label’Vie S.A ; » Initial Public Offering of Label’Vie S.A. » Creation of Label’Vie. » Opening of the first store in Rabat. » Birth of the first chain of s u p e r m a r k e t s w i t h a M o r o c c a n c a p i t a l « Carrefour Market ». » Acquisition of Superdiplo Maroc ; » Supply agreement with the international group (Ahold). » S a n a m H o l d i n g G r o u p acquires a stake in Retail holding. » A c q u i s i t i o n i n Novembre 2010 of Metro Cash & Carry Morocco ; » 1st bonds issue of 500 MMAD. » 2nd bond issue of 400 MMAD. 1985 1986 2001 2002 2006 2008 2009 2012 2014 2016 2010

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» Securitization of 20 properties b e l o n g i n g t o LBV for 456,8 MMAD ; » 3rd bond issue of 1 500 MMAD. » Capital increase of VLV ; » Acquisition of a 27% stake by BERD ; » Merger absorption of Petra by VLV.

Bond issue Important event

2017 » Capital Raise of 396 MMAD to f i n a n c e t h e d e v e l o p m e n t plan of Label’Vie Group 412 563 704 870 1.179 1.836 4.888 5.401 5.672 5.777 6.325 6.728 7.557 8.275 9.033 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 IPO

Acquisition

  • f Métro

X 22 x 8

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LABEL’VIE Capital Increase by cash – Investor’s Presentation Strictly Confidential

A VAST NETWORK COVERING MOROCCO’S MAJOR CITIES GEOGRAPHICAL DISTRIBUTION OF LABEL'VIE STORES AS OF 31/12/2018

5 Source : Label’Vie

10
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SLIDE 6

LABEL’VIE Capital Increase by cash – Investor’s Presentation Strictly Confidential

1 2 3

SUMMARY

LABEL’VIE GROUP DEVELOPMENT STRATEGY AND H1-2019 RESULTS

  • P. 3
  • P. 10

BEST FINANCIERE

  • P. 18

4 APPENDICES

  • P. 21
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LABEL’VIE Capital Increase by cash – Investor’s Presentation Strictly Confidential

Sustained growth in turnover A strategy to strengthen the prominence and positioning of the Group’s brands as well as its operational optimization 1,9 Billion MAD of investments 30 000m²/year of additional surface area

For the next 3 years

Capitalize on the brand awareness of « Carrefour Market » by implementing a convergence branding strategy Pursue the cost-rationalization program and benefit from more economies of scale Strengthen the brand awareness of « atacadao » as the cheapest chain stores brand in morocco Maintain the development of « Carrefour » hypermarkets at the national level and capitalize on the experience of the international Carrefour Group

DEVELOPMENT STRATEGY AND BUSINESS PLAN

GLOBAL OVERVIEW

Source : Label’Vie An average investment of 600

MMAD/year:

  • Development plan (Excluding

Land & Construction)

  • Renovation and maintenance

CAPEX Over 10 Billion MAD turnover in 2019 thanks to:

  • Like for like sales growth of 2,7%

for the supermarket and hypermarket segments and 8% for Atacadao sales

  • Sales from new openings

An average of 30 000 m²/year:

  • For the 3 segments
  • Support of the property company

for the development of Atacadao and Carrefour Hypermarket

For the next 3 years

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LABEL’VIE Capital Increase by cash – Investor’s Presentation Strictly Confidential

MAJOR H1-2019 EVENTS

H1-2019 OPENINGS

Ø 7 new stores opened in H1-2019 Ø 99 stores at June 30th, 2019 Points de vente en déc. 2018 73 8 11 92 m² de ventes 83 034 44 800 59 564 187 398 en % du total Groupe 44% 24% 32% 100% Ouvertures 7 7 m² ouverts 4 468 4 468 Points de vente S1-2019 80 8 11 99 m² de ventes 87 502 44 800 59 564 191 866 en % du total Groupe 46% 23% 31% 100% Number of stores dec 2018 Number of stores by June 30th 2019 Sales area in sqm Sales are in sqm Openings Sales Area opened % Total Group % Total Group

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LABEL’VIE Capital Increase by cash – Investor’s Presentation Strictly Confidential

GROUP ORGANIZATION STRUCTURE

Multi-Formats Retailer

Label’Vie SA HLV SLV

100% 95% 95%

MLV

5% owned by Carrefour (CPI) 5% owned by Carrefour (CPI)

Manages Hypermarkets Manages Atacadao Stores Manages supermarkets & the Group’s Central Office Manages Gas-Stations

Ø Every format is managed by a dedicated entity Ø A Business Unit structure to ensure client’s proximity and to benefit from the Group’s synergies

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LABEL’VIE Capital Increase by cash – Investor’s Presentation Strictly Confidential

q Growth in Total Revenues by 12%, and of the Gross Margin by 10 % compared to H1-2018 q Decrease of the Gross Margin Ratio by 38 bps (-48bps in direct margin: -56bps Atac; -58bps CRF Mkt). q Decrease of Operating Expenses by -15 bps compared to H1-2018 from 13.8% to 13.7% q +5% in EBIT (drop of 32 bps in ration; -22 bps in EBITDA; -9 bps in depreciation) q Strong leap of Income before Taxes by 23% and +44 bps in ratio terms. q Jump of Net income by 20% and +27 bps in ratio terms (4.0% of sales vs. 3.7% previously) H1-2019 RESULTS INCOME STATEMENT H1-2019 VS H1-2018

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LABEL’VIE Capital Increase by cash – Investor’s Presentation Strictly Confidential

SALES GROWTH H1-2019 BY FORMAT +9.0% +12.0% +13.1%

8 retail outlets 80 retail outlets 11 retail outlets

§ Increase in hypermarket sales by 9% thanks to: q Like-for like sales growth of 4% q Sales from Carrefour Tetouan opened in May 2018. § Increase in supermarket sales by +12% thanks to: q Like-for like sales growth of 3% q Store openings done in 2018 and 2019 § Increase in hyper-cash sales by 13.1% in H1-2019

H1-2019 Results

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LABEL’VIE Capital Increase by cash – Investor’s Presentation Strictly Confidential

BALANCE SHEET CASH FLOW & WORKING CAPITAL

Résultats Annuels 2016

q Decrease in cash and cash equivalents by 192 MADm compared to its level in December 2018 due to: q Decrease of Working Capital by -32 MADm due to a delay of contracting commercial loans; q Decrease of Operating Working Capital by 301 MADm due to the suppliers account (Ramadan and Chaaban seasonal imports); q Gain in other current assets by 140 MADm (Dividends of 150 MADm to be distributed in September) q Retention of the net debt ratio 42% of the permanent financing

H1-2019 Results

Value Day of sales Value Day of sales

Value Day of sales VALUE Working Capital 213 077 9 181 549 8

  • 31 528
  • 2

Equity 1 853 543 82 1 873 801 81 20 258

  • 1

Net income 288 401 168 710 Dividends

  • 150 000
  • 150 000

Rights Issue

  • Minority Interest

4 162 1 548 Financing Debt 2 307 390 102 2 324 210 100 16 820

  • 2

New loans 324 488 80 000 Bonds

  • Reinmbursements
  • 120 837
  • 63 179

Permanet Financing 4 160 933 185 4 198 011 181 37 079

  • 3

Net Debt Ratio 42,8% 47,4%

Fixed Assets

  • 3 947 855
  • 175
  • 4 016 462
  • 174
  • 68 607

2 Investments 519 418 223 481 Sale

  • 55 300
  • 394

Depreciation

  • 275 085
  • 154 481

Normative Operating Working Capital 732 927 33 431 860 19

  • 301 067
  • 14

Inventory

  • 1 478 326
  • 66
  • 1 471 811
  • 64

Receivable/Debt 2 211 253 98 1 903 671 82 Other Currents Assets

  • 420 897
  • 19
  • 280 498
  • 12

140 399 7

TREASURY AND PLACEMENTS

525 106 23 332 910 14

  • 192 196
  • 9

FINANCIAL INDICATORS 2018 2019

Change

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LABEL’VIE Capital Increase by cash – Investor’s Presentation Strictly Confidential

1 2 3

SUMMARY

LABEL’VIE GROUP DEVELOPMENT STRATEGY AND H1 2019 RESULTS

  • P. 3
  • P. 10

BEST FINANCIERE

  • P. 18

APPENDICES

  • P. 21

4 2 3

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LABEL’VIE Capital Increase by cash – Investor’s Presentation Strictly Confidential

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LABEL’VIE Capital Increase by cash – Investor’s Presentation Strictly Confidential

1 2 3

SUMMARY

LABEL’VIE GROUP DEVELOPMENT STRATEGY AND H1-2019 RESULTS

  • P. 3
  • P. 10

BEST FINANCIERE

  • P. 18

APPENDICES 4

  • P. 21

2

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LABEL’VIE Capital Increase by cash – Investor’s Presentation Strictly Confidential

APPENDICES OPENING 2019

16 16

Magasins Superficie en m² Ville Date Ouverture prévue Etat d'avancement Haut Agdal 500 Rabat 01/01/2019 Ouvert - Janvier 2019 Maamoura 650 Kenitra 01/02/2019 Ouvert - Février 2019 El Houda 480 Agadir 01/06/2019 Ouvert - Mars 2019 Mansouria 725 Mohammadia 01/06/2019 Ouvert - Mai 2019 Oasis 700 Casablanca Non prévue Ouvert - Mai 2019 Semlalia 613 Marrakech 01/11/2019 Ouvert - Mai 2019 Dar Bouazza 800 Casablanca 31/12/2019 Ouvert - Juin 2019 Kamal Parc 815 Mohammadia 01/06/2019 Ouvert - Juillet 2019 Mohammed V 500 Casablanca 01/06/2019 Ouarzazat 800 Ouarzazat 01/06/2019 Champs de Course/La Villa 900 Fès 01/11/2019 Gauthier 850 Casablanca 01/11/2019 Ville verte 500 Casablanca 31/12/2019 Magasins Superficie en m² Ville Date Ouverture prévue Etat d'avancement M a r k e t Témara Sadet 4500 Rabat 01/12/2019 Dar Bouazza 4500 Casablanca 01/09/2019 Extension Targa 1700 Marrakech 01/08/2019 Magasins Superficie en m² Ville Date Ouverture prévue Etat d'avancement H y p e r Agadir Tikiouine 4300 Agadir 01/07/2019 Magasin Non identifié A définir En cours de prospection A t a c a d a