LABEL'VIE GROUP PRESS CONFERENCE PRESENTATION OF 2019 ANNUAL - - PowerPoint PPT Presentation

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LABEL'VIE GROUP PRESS CONFERENCE PRESENTATION OF 2019 ANNUAL - - PowerPoint PPT Presentation

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LABEL'VIE GROUP PRESS CONFERENCE PRESENTATION OF 2019 ANNUAL RESULTS Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020 1 2019 HIGHLIGHTS Store Openings Bond debt SGE Commitments SUMMARY Opening of the Agadir

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Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020

LABEL'VIE GROUP PRESS CONFERENCE

PRESENTATION OF 2019 ANNUAL RESULTS

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Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020

2019 HIGHLIGHTS ฀ Store Openings ฀ Bond debt ฀ SGE Commitments ฀ Opening of the Agadir F&V platform

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2020 PERSPECTIVES ฀ Business prospects ฀ New Carrefour Market concept ฀ New corporate identity

SUMMARY

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FINANCIAL RESULTS ฀ Consolidated accounts ฀ Balance sheet indicators

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Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020

1 REVIEW OF SIGNIFICANT EVENTS 2019

฀ Openings ฀ Bond debt ฀ SGE Commitments ฀ Opening of the Agadir’s F&V platform.

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OPENINGS

Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020

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Summary

OPENINGS FOR FISCAL YEAR 2019

SUMMARY TABLE

Comments

▪ Opening of 12 Carrefour Market and 1 Hypermarket "Dar Bouazza" in Casablanca. ▪ 13,866 sqm. opened in 2019 (including 1,700 sqm. of additional sales area for the "Targa" Marrakesh hypermarket) ▪ Closing of the Carrefour Market Casablanca Bethune store Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020 Supermarkets Hypermarkets Hyper Cash Total Group Number of stores on Dec. 2018 73 8 11 92 Sales in sqm. 83,034 44,800 59,564 187,398 In % of Group total 44% 24% 32% 100% Openings 12 1 13 Sales area opened in sqm. 7,666 6,200 13,866 Closings 1 1 Sales area closed in sqm. 500 500 Number of stores on Dec. 2019 84 9 11 104 Sales area in sqm. 90,200 51,000 59,564 200,764 In % of Group total 45% 25% 30% 100%

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12 CARREFOUR MARKET OPENINGS IN 2019

CARREFOUR MARKET

RABAT DESCARTES Opening: January 24th, 2019 Sales area: 500 sqm.

Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020

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12 CARREFOUR MARKET OPENINGS IN 2019

CARREFOUR MARKET

KENITRA MAAMORA Opening: February 21st, 2019 Sales area: 650 sqm.

Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020

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CARREFOUR MARKET

AGADIR EL HOUDA Opening: March 21st, 2019 Sales area: 480 sqm.

Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020

12 CARREFOUR MARKET OPENINGS IN 2019

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CARREFOUR MARKET

MOHAMMEDIA, MANSOURIA Opening: May 30th, 2019 Sales area: 725 sqm.

CARREFOUR MARKET

CASA OASIS Opening: May 30th, 2019 Sales area: 700 sqm.

CARREFOUR MARKET

MARRAKECH, SEMLALIA Opening: May 30th, 2019 Sales area: 613 sqm.

Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020

12 CARREFOUR MARKET OPENINGS IN 2019

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CARREFOUR MARKET DAR

BOUAZZA Opening: June 27th, 2019 Sales area: 800 sqm.

Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020

12 CARREFOUR MARKET OPENINGS IN 2019

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CARREFOUR MARKET

MOHAMMED KAMAL PARK Opening: July 25th, 2019 Sales area: 815 sqm.

Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020

12 CARREFOUR MARKET OPENINGS IN 2019

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CARREFOUR MARKET

CASABLANCA MOHAMMED V Opening: October 24th, 2019 Sales area: 500 sqm.

CARREFOUR MARKET

OUARZAZATE Opening: October 24th, 2019 Sales area: 800 sqm.

Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020

12 CARREFOUR MARKET OPENINGS IN 2019

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CARREFOUR MARKET

BOUSKOURA JASMINE Opening: December 26th, 2019 Sales area: 600 sqm.

CARREFOUR MARKET

ABAT, OQBA Opening: December 26th, 2019 Sales area: 483 sqm.

Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020

12 CARREFOUR MARKET OPENINGS IN 2019

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CARREFOUR

DAR BOUAZZA Opening: September 18th , 2019 Sales area: 4 500 sqm.

Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020

12 CARREFOUR OPENINGS IN 2019

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1 CARREFOUR EXTENSION IN 2019

CARREFOUR

MARRAKECH, TARGA Opening: December 16th, 2019 Extension of 1,700 sqm.

Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020

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Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020

A NETWORK COVERING 26 CITIES

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BOND DEBT

Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020

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Operation Amount Terms and conditions of reimbursement Operation’s Objectives Going rate 750 MMAD

  • Financing the development plan
  • Taking advantage of financial leverage
  • Debt restructuring

Average Interest Rate of 3.4%

50% in-fine over 5 years 50% amortized over 7 years

▪ The loan was subscribed by 49 subscribers of different categories (credit institutions, insurance companies, pension funds, financial companies and CDG) with a subscription rate of 7.4x. ▪ Only Type I investors (former holders of 2014 bonds) were served.

BOND ISSUANCE CHARACTERISTICS AND OBJECTIVES OF THE OPERATION

Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020

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SGE COMMITMENTS

Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020

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Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020

SGE AT THE CENTER OF OUR ACTIVITY

฀ Our Group aims to become the leading SGE player in the retail industry in Morocco. Our policy on social responsibility is based on five pillars: ฀ Client Focus ฀ Development of Human Capital, ฀ Social Development, ฀ Environment protection, ฀ Governance and Business Ethics,

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Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020

OUR ENVIRONMENTAL FOOTPRINT

OUR ENVIRONMENTAL INITIATIVES

World Clean Up Day ฀ Extensive beach cleaning operation conducted in 2019 in partnership with the Mohammed VI Foundation for the Preservation

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the Environment. ฀ The operation took place in 4 beaches in Morocco (Salé, Casablanca, Nador and Tangier) and more than 8 tons of waste were collected.

Solar Panels

฀ As part of the diversification of energy supply sources, the Group has undertaken an initiative to cover stores with a solar panel roof that allows near self-sufficient energy. ฀ The experiment, carried out at the Atacadao Meknes site and which required more than 6 months of work, has been operational since October

  • 2019. It has reduced energy costs by 23%.

฀ An ambitious project for a covered parking in the Skhirat distribution center is being studied and will be tested by the beginning of 2021.

Waste management and recycling

฀ Label'Vie Group is planning the widespread installation of waste management devices such as compactors. ฀ In 2019, 6,700 tons of waste were collected and reused.

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Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020

OUR HUMAN RESOURCES POLICY

TRAINING, AT THE HEART OF OUR BUSINESS

฀ One

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the biggest recruiting companies in Morocco (1 300 people recruited in 2019) ฀ An internal training school: 1,500 beneficiaries each year, 22 training cycles and approximately 180 internal trainers; ฀ Studied and adapted trainings delivered each year for more than 2,000 employees; ฀ Partnerships with Schools & Universities in order to set up professional and alternance programs: 103 students trained in 2019.

Certificate of Operator of Meats in alternance with the IRTSE

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Professional License in Trade and Distribution in alternance with the FSJES

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Degree in Agri-food Sciences and Business Techniques with the FST of Al Hoceima Management of Trade & Distribution in Food Processing with the FST of Settat

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Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020

OUR GOVERNANCE

ELECTION OF TWO NEW INDEPENDENT DIRECTORS

Jean Marie Grosbois ฀ French Foreign Trade Advisor ฀ President of the French Chamber of Commerce and Industry of Morocco. ฀ Managing Director of the Brasseries du Maroc Group. ฀ Lieutenant Commander Cousteau's team (Calypso) Marie Claude Azzouzi ฀ Highly experienced consultant in governance of complex projects. ฀ Managing Director of Idéal Loisirs - Majorette. ฀ Founder and Manager of the Rabat School of Governance and Economics

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Label’Vie – Présentation des résultats annuels 2019 - Conseil d’administration

FIRST SGE ACHEIVEMENT

ATTESTATION LEVEL OF MATURITY ISO 26000

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OPENING OF THE AGADIR F&V PLATFORM

Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020

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OPENING OF AN F&V PLATFORM IN AGADIR OPERATIONAL EXPANSION

฀ Opening in September 2019 of the Fruits & Veggie regional distribution center of 1,200 sqm on 1 ha land reserve. ฀ Optimal location close to the country’s largest farms ฀ Regional dimension: 80% of the assortment supplied and distributed regionally ฀ Domestic dimension: purchasing from the farms for the entire network

Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020

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Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020

FINANCIAL RESULTS ฀ Consolidated accounts ฀ Balance sheet indicators

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CONSOLIDATED ACCOUNTS

Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020

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MAIN FINANCIAL INDICATORS KEY EVOLUTIONS

Gross Operating Profit Net income Operating Income Sales

In MMAD

Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020 +12% +15% +9% +10%

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Fixed assets and Financing Traffic

+14% In thousands of bills

Investment (excl. securization)

in MMAD +23% Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020

MAIN FINANCIAL INDICATORS

KEY EVOLUTIONS

in MMAD

Fxed Assets Fexed Assets

Permanent Financing Net Investment

Net Investment Net Investment

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Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020

2019 CONSOLIDATED FINANCIAL STATEMENT

INCOME STATEMENT VS. HISTORICAL DATA

฀ A year of volume: ▪ + 1,225 MMAD in additional sales, ▪ +15% compared to historical figures: ฀ Increase in gross margin of 204 MMAD; ฀ Decrease of operating expense ratio by 44 bp. thanks to economies of scale; ฀ Stable financial result despite an investment of 640 MMAD.

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▪ Progression of 22% of sales for the hypercash segment thanks to the increase in sales at constant perimeter ▪ Progression by 12% of sales of supermarkets thanks to: ❑ The 2% increase in sales at constant perimeter ❑ The contribution of store openings in 2018 and 2019 by respectively, 170 MMAD and 151 MMAD ▪ Increase in sales of hypermarkets by 8%: ❑ The increase in sales at constant perimeter by 2% ❑ The contribution of store openings in 2018 and 2019 by respectively, 69 MMAD and 59 MMAD

KEY PERFORMANCE INDICATORS

SALES

Sales By Perimeter

Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020

+8% + 22%

23% of Group sales

9 stores

36% of Group sales

11 stores

+12%

37% of Group sales

84 stores

+ 15%

104 stores

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CONSOLIDATED ACCOUNTS

GROSS OPERATING PROFIT & OPERATING INCOME

Change in EBITDA and operating profit (MMAD) Evolution of margins (% of sales)

+9% +12%

  • 20 bp.
  • 30 bp.

Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020

฀ In terms of value, EBITDA reached 789 MMAD and recorded a progress of +12% compared to 2018: ▪ The increase in EBITDA covers all business segments, ▪ This increase was mainly due to the increase in operating margins of 204 MMAD. ฀ The increase in business volumes has also led to economies of scale and improved the Group’s operating expense ratio by 44

  • bp. compared to sales. The improvement in the expense ratio concerns both head offices and stores.

฀ The EBITDA ratio to sales fell -20 bp compared to which is mainly explained by a more aggressive commercial strategy to gain in volume and traffic.

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Change in financial income and expenses (MMAD) Details of financial products (MMAD)

+9%

  • 1%

CONSOLIDATED ACCOUNTS

FINANCIAL RESULT

Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020 +5% +5%

▪ The Financial Result went from -24.6 MMAD in 2018 to -25.6 MMAD in 2019, i.e. an improvement of 3 bp. in terms of sales ratio. ▪ The financial result remained stable in 2019 in a year of strong growth despite an investment of 640 MMAD. This performance can be explained in particular by: ▪ The significant improvement in debt costs and the optimization of financial investments; ▪ The monitoring of the net working capital.

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Change in Operating income and Net income (MMAD)

CONSOLIDATED ACCOUNTS

RECURRING AND NET INCOME

Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020 +10% +9%

▪ Operating income rose from 402 MMAD in 2018 to 440 MMAD in 2019, representing a 9% increase. ▪ Net income reached 318 MMAD, an increase of 10% compared to 2018.

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KEY BALANCE SHEET INDICATORS

Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020

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BALANCE SHEET ITEMS VS HISTORY

Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020

The decrease in cash of -139 MDH in comparison to its 2018 level is mainly related to: ฀ Repayment of 280 MMAD of bonds; ฀ The improvement of Working Capital by +116 MMAD; ฀ Repurchase of assets initially securitized in December 2014.

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Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020

3 2020 OUTLOOK

฀ Business prospects ฀ New corporate identity system ฀ New Carrefour Market Concept

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BUSINESS PROSPECTS

Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020

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฀ In order to strengthen its position as a strategic multi-format player, the Group intends to pursue its development program with the opening of 18 new stores in 2020 totalizing approximately 28 000 sqm of additional sales space covering 3 business segments. ฀ The Group also agrees to maintain the upward trend of economic and financial indicators in 2020 in line with the objectives set, as well as to maintain its dividend distribution policy. ฀ At its meeting on February 28, the Board of Directors decided to propose to the Shareholders' Meeting the distribution of a dividend of 160 MMAD for fiscal year 2019 i.e 56,4 MAD per share.

Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020

2020 PERSPECTIVES DIVIDENDS DISTRIBUTION AND OPENINGS

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NEW CARREFOUR MARKET CONCEPT

Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020

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LAUNCH OF THE PREMIUM CARREFOUR MARKET CONCEPT CARREFOUR MARKET DAR BOUAZZA CASABLANCA

This Gourmet-inspired concept was inaugurated in Dar Bouazza, Casablanca in July 2019: ฀ Gourmet-inspired layout, signage and customer experience; ฀ 40% of the sales area is dedicated to fresh products; ฀ 1 corner offering hot bread and pastries all day long; ฀ 2 new concepts: fresh juice and roasted chicken; ฀ 11 store conversions planned for 2020

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NEW CORPORATE IDENTITY

Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020

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Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020

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For more details, please contact: Amine Bennis : a.bennis@labelvie.ma Hamza Bennani : h.bennani@labelvie.ma

Label'Vie - 2019 Annual Results Presentation - Tuesday, March 3, 2020