RALLYE Investor Presentation May 2017 GROUP PRESENTATION AS AT - - PowerPoint PPT Presentation

RALLYE

Investor Presentation

May 2017

2 Rallye – Investor Presentation – May 2017

Strategic asset Among the global leaders in the food retail industry

Listed company

Specialist in the sporting goods retail industry Diversified investment portfolio made up of both financial investments and real estate programmes

100% 51,1% of shares (1) 63.7% of voting rights

RALLYE GROUP PRESENTATION AS AT DECEMBER 31, 2016

INVESTMENT PORTFOLIO

3 Rallye – Investor Presentation – May 2017

 RALLYE - Financing & Liquidity  Casino  Appendices

AGENDA

4 Rallye – Investor Presentation – May 2017

Rallye’s net financial debt stood at €2,899m as at December 31, 2016, versus €2,968m at year end 2015

268

• 73

338 Bond debt 2,968 Bank loans and private placements 1,864 Commercial paper Drawn credit lines 570 Cash and cash equivalents Other (1)

• 16
• 30

353 323 560 2,899 1,709

• Dec. 31, 2015

NET FINANCIAL DEBT AS AT DECEMBER 31, 2016

Other (1) Bond debt Bank loans and private placements

• Dec. 31, 2016

Drawn credit lines Cash and cash equivalents Commercial paper

As at May 12, 2017 the

• utstanding

amount

• f

commercial paper stood at €511m

• €69m

5 Rallye – Investor Presentation – May 2017

A CONTROLLED BOND DEBT SCHEDULE: NO REDEMPTION BEFORE OCTOBER 2018

Bond redemption schedule Total: €1,709m(1)

In € millions

Bond exchangeable into Casino shares: investor put on October 2, 2018

375 200 465 300 300 70 2017 2019 2018 2023 2022 2021 2020 445

Non-dilutive bond exchangeable into Casino shares Bond denominated in Swiss francs(2)

As at December 31, 2016, the average maturity of Rallye’s bond debt is 3.4 years. Rallye reinforced its liquidity through new sources of financing:

• Issuance in October 2016 of an non-dilutive exchangeable bond for €200m. The dilution is hedged by the acquisition of call
• ptions on Casino shares. The bond has a coupon of 5.25% and matures in February 2022
• Issuance in November 2016 of a first CHF 75m bond maturing in November 2020 at a cost in euro well below the coupon of

Rallye’s Euro Bond redeemed in November 2016

6 Rallye – Investor Presentation – May 2017

A CONTROLLED NON-BOND DEBT SCHEDULE: NO REDEMPTION BEFORE 2018

Bank loans and private placements redemption schedule

In € millions

Private placement

110 150 200 50 50 2022 2017 2020 2021 2018 2019

Total: €560m(1)

As at December 31, 2016, the average maturity of Rallye’s non-bond debt is 3.6 years.

7 Rallye – Investor Presentation – May 2017

Confirmed credit lines maturity schedule

In € millions

Total: €1,820m(1)

The average maturity of the €1,820m confirmed credit lines is 4 years:

• In 2016, Rallye has extended the maturity of more than €850m of credit lines
• Confirmed credit lines are contracted with about twenty different banks

A STRONG LIQUIDITY POSITION, WITH €1.8bn OF CONFIRMED CREDIT LINES, OF WHICH €1.5bn UNDRAWN

300 783 390 257 90 2023 2022 2021 2020 2019 2018 2017

8 Rallye – Investor Presentation – May 2017

as at December 31, 2016

Net debt coverage by assets

196 Other assets Casino NFD 2,899 Revalued assets as at 12/31/2016 2,781 2,586 In € millions x 0.96 Number of shares Price in € Revalued assets in €m(1) Casino 2,586 56,714,263(2) 45.59€

Of which Investment Portfolio 71

Revalued assets 2,781 Net financial debt 2,899 Other assets

23

Net asset value computation as at 12/31/2016

CLOSE TO €2.8bn OF ASSETS AS AT DECEMBER 31, 2016, OF WHICH €2.6bn OF LISTED ASSETS

Of which Go Sport Group (3) 102

196

Of which other

As at May 12, 2017, the ratio of net debt coverage by assets stood at 1.15 x(4)

9 Rallye – Investor Presentation – May 2017

• Rallye’s net financial debt improved by €69m in 2016, at €2,899m, compared to €2,968m at the end of 2015
• Rallye’s recurring cash-flow equation(1) was positive in 2016, at +€29m vs -€74m in 2015, thanks to:
• Continuing optimization of Rallye’s net financial cost compared to 2015
• Lower holding costs through the optimization of all operating expenses
• A new dividend policy for Casino including an interim dividend payment(2)

A POSITIVE CASH-FLOW EQUATION IN 2016

Rallye will continue to improve its recurring cash-flow equation through constant

• ptimization of its financial and holding cost, and through an adjusted dividend policy

In €m 2015 2016 Net financial debt at 01/01 (2 798) (2 968) Net financial cost (A) (134) (130) Of which Rallye cost of net financial debt (112) (105) Of which cost of bank lines and issue costs (21) (19) Holding costs (B) (21) (17) Dividends paid by Rallye (C) (89) (89) Dividends received from Casino (D) 171 265 Recurring cash-flow equation (A + B + C + D) (74) 29 Net cash-in on investment portfolio divestments 46 25 Purchase of Casino shares (126) Other (16) 16 Net financial debt at 12/31 (2 968) (2 899)

10 Rallye – Investor Presentation – May 2017

AN ADJUSTED DIVIDEND POLICY

• In order for Rallye to maintain a positive recurring cash-flow equation, the General Annual Meeting held
• n May 10, 2017 voted an adjusted dividend policy for the company :
• Rallye will pay a 2016 dividend of €1.40 per share (vs €1.83 for 2015), to be paid on June 9, 2017
• Shareholders will be able to opt for payment of the dividend in shares
• Rallye’s reference shareholder Foncière Euris already announced it will opt for payment of the dividend in

shares.

This adjusted dividend, and the option to pay it in shares, will allow Rallye to continue the decrease in its net financial debt initiated in 2016, through a positive recurring cash-flow equation

11 Rallye – Investor Presentation – May 2017

 There are no covenants on Rallye’s bond documentation nor on Rallye’s commercial paper program  Rallye’s bank documentation does not include any covenant or step-up clause linked to Rallye’s NAV, Rallye’s net debt coverage by assets ratio nor Casino’s share price or rating  The only covenants on Rallye’s bank debt (drawn or undrawn) are the following:

COVENANTS INDEPENDENT FROM CASINO’S SHARE PRICE AND MET WITH AMPLE HEADROOM AT YEAR END 2016

Standalone equity of Rallye SA (statutory accounts) > €1.2bn

2016 1,732 Covenant 1,200

Standalone equity of Rallye SA as at December 31 (m€)

Consolidated EBITDA / consolidated cost

• f net financial debt > 2.75

12/31/2016 Calculated twice a year at 06/30 on a LTM basis and at 12/31 Can be read directly in Rallye’s consolidated financial statements Calculated once a year at year-end Can be read directly in Rallye’s unconsolidated financial statements

435 EBITDA 1,710 Cost of net financial debt 2016 3.93 x Covenant 2.75 x

In €m

12 Rallye – Investor Presentation – May 2017  Over the last semesters, Rallye replaced the majority of its most expensive financing by cheaper resources  In 2016, Rallye carried on the optimization of its financial costs by arbitrating between available resources  Buyback of €35m of bonds maturing in 2021  Signing of bank financings at a reduced cost compared to bonds  Bond issuance in Swiss francs in November 2016 at a cost in euro well below the coupon of Rallye’s Euro Bond redeemed in November 2016

FURTHER DECREASE OF RALLYE’S COST OF NET FINANCIAL DEBT IN 2016

Rallye’s cost of net financial debt stood at €105m in 2016 compared to €112m in 2015. In 3 years, Rallye has reduced its cost of net financial debt by approximately 45%

105 112 165 188 2015 2014 2013 2016

Evolution of Rallye’s cost of net financial debt (€m)

13 Rallye – Investor Presentation – May 2017

 RALLYE - Financing & Liquidity  Casino  Appendices

AGENDA

14 Rallye – Investor Presentation – May 2017

2016 HIGHLIGHTS

Confirmed turnaround in France:  Improvement in organic sales(1) of +0.8% and gross sales under banners(2) of +1.5%  Market share gains of +0.1 point(3) over the full year 2016  Earnings recovery: trading profit of €508m vs €337m in 2015, of which €421m for retail vs €170m in 2015 (up +148%) Stepped-up organic growth in Latin America:  High organic growth(1) at +10.8% for Exito (excluding GPA Food) and good profitability thanks to success in all formats  Acceleration in GPA Food's organic sales(1) in Brazil at +11.7% in 2016 (versus +6.4% in 2015) : cash & Carry (Assaí) is up +39.2% and sales were revitalized at Extra hypermarkets Simplification and debt reduction:  Simplification of Casino’s e-commerce activities following the decision to merge Cnova Brazil's with Via Varejo’s, and project to dispose of this entity  Significant deleveraging within the Group and in France thanks to asset disposals: reduction in Casino net debt in France(4) at €3.2bn, compared to €6.1bn in 2015  Decrease of the consolidated Net debt / EBITDA ratio from 2,6x in 2015 to 2.0x in 2016,

2016 net sales: +5.7% on an organic basis(1)

In €m

35,312 + 1,138 + 801 (1,131) 36,030

Reported Sales 2015 Reported sales 2016 Same-store growth excluding calendar effects Expansion Fuel and calendar effects Currency effect Scope impact Organic sales excluding calendar effects + 5.7%

• 3.2 %
• 0.2 %
• 0.3 %

+ 1.9 % + 3.9 %

1,034

+ 2%

2016 consolidated trading profit : + 8.4% at CER(5)

In €m

2015 2016 at CER(5) 2016 France Retail 337 508 508 Latam Retail 698 583 538 E-commerce

• 39
• 12
• 11

Total 997 1,080 1,034 Change in % 8,4% 3,7%

15 Rallye – Investor Presentation – May 2017

IN Q1 2017, CASINO’S SALES UP +11.6%

2016 of specialised sites Comptoir des Parfums, Comptoir Santé and MonCornerDéco, ii) the planned reduction of B2B sales initiated in Q3 2016, and iii) restatement for the leap year impact (29 February 2016).

Q1 2016

+ 801

+ 709 Q1 2017 + 3.1 %

Same-store growth excluding calendar effects Expansion Currency scope, and calendar effects

+ 11.6 % Organic sales excluding calendar effects + 0.6 %

8,349 9,321

+ 2.5 % + 209 + 54

+ 8.5 %

 In France food retail, traffic up +1.1% across all banners, with a good performance at Monoprix, Supermarchés Casino and Franprix: – Monoprix: continued strong momentum with same-store sales up +2.1% and traffic up +2.9% – Casino Supermarkets: further sustained growth with organic sales up +4.1% and traffic up +1.9% – Franprix: same-store sales up +1.4% and traffic up +4.1% – Géant Casino: stable market share and same-store food sales up +0.4% – Leader Price performance in line with Q4 2016 (same-stores sales up +0.2%) with stable traffic  Cdiscount: gross merchandise volume (GMV) up +7.7% on a like-for- like basis (1). +10% of GMV growth over the last 8 weeks (2).  In Latin America, organic sales up +7.7% in a context of decelerating inflation (except for Argentina): – Exito (excluding Brazil): organic growth driven by good same- store performances in Uruguay and expansion in all regions – GPA Food: continued growth in activity, with organic sales up +9.8% despite a sharp fall in food price inflation

Q1 2017 sales: +11.6%

In €m

Q1 2017 vs Q1 2016 sales trends by sector

In €m Q1 Total Organic Same-store growth 2017 growth growth

France Retail

4,504

• 1.0%
• 0.5%

+0.2%

Cdiscount

469 +1.5% +2.8% +4.0%

Latam Retail

4,348 +30.2% +7.7% +4.6% Total 9,321 +11.6% +3.1% +2.5%

16 Rallye – Investor Presentation – May 2017

SHARP REDUCTION OF NET FINANCIAL DEBT AS OF 2016

Strong deleveraging of the Group since 2014

In €bn (1)

Positive cash-flow equation in France in 2016 with a FCF after distribution of c.€100m

In €m Operating cash flow

• f the wholly-owned French

activities after tax(3) 885 Dividends received from international subsidiaries and equity associates 77 Capex 293 2015 dividends paid and coupons 396 2016 interim dividend Free cash flow after distributions 171 102

 Strong deleveraging supported by assets disposals in Thailand and Vietnam and the classification of Via Varejo as discontinued operations  Strong deleveraging in France in 2016 with €2.5bn proceeds from disposals used to pay down financial debt

5.7 6.1 3.4

2014 2015 2016

7.6 6.1 3.2

2014 2015 2016

Reduction in Group net debt Reduction in net debt in France(2)

≈-60% ≈-40%

17 Rallye – Investor Presentation – May 2017

PERSPECTIVES

Ongoing pursuit of operational excellence :

• Continued improvement of in-store

execution

• Continued rigorous management of costs,

CAPEX and inventories Adapting the formats in real time to new consumer trends and developing the most buoyant formats :

• Hypermarkets: continued non-food retail space

reduction

• Cash & Carry: accelerate growth
• Premium: affirm the Group's leadership
• Proximity: adapt to market changes
• E-commerce: profitable growth strategy

deployed France

• Monoprix : good sales‘ dynamics, expansion
• Franprix, completion of the new Mandarine

concept roll-out, 50 new store openings

• Supermarchés Casino : continued upgrade
• Proximity : new concept development
• Leader Price : sales‘ momentum in line with Q4
• Géant : break-even resumption
• Cdiscount : ambitious objective to expand own
• ffer and number of sellers

Latin America

• GPA in Brazil: refocus on food retail and

priority to Cash & Carry

• Éxito (excluding GPA Food): expansion,

property development and synergies among countries

18 Rallye – Investor Presentation – May 2017

KEY OBJECTIVES FOR 2017

• Well-controlled CAPEX: thanks to priority focus on buoyant formats, investment costs

per sq.m reduction and ongoing development under franchise for the formats where it is relevant

• After a sharp decrease in debt in 2016, ongoing improvement in the net debt/EBITDA and

credit ratios

• Disposal of Via Varejo

Continued development with good debt management

• In France, Casino aims at reaching c.15% growth in trading profit of food retail activity and

forecasts a contribution from its property development activities of c.€60m

• Casino also expects a growth of at least 10% in its consolidated trading profit,

under current forex conditions

Profitability

19 Rallye – Investor Presentation – May 2017

 RALLYE - Financing & Liquidity  Casino  Appendices

• Casino
• Group GO Sport

AGENDA

20 Rallye – Investor Presentation – May 2017

In €m 2015

Restated (1)

2016 Consolidated net sales 35,312 36,030 EBITDA 1,689 1,697 Trading profit 997 1,034 Consolidated net profit (loss), Group share (43) 2,679 Net underlying profit (loss), Group share 357 341 Consolidated net debt (6,073) (3,367) Casino net debt in France(2) (6,081) (3,200)

2016 KEY FIGURES

Preliminary comments :  IFRS 5 has been applied to the 2016 financial statements to take into account the disposal of operations in Asia and the project to dispose of Via Varejo. Accordingly: – Profits from operations in Asia in 2015 and up to their disposal in 2016, as well as the consolidated gain made on the disposal are included in the income statement under "net profit from discontinued operations" – Via Varejo's operations (including those of Cnova Brazil) were reclassified as discontinued operations in 2015 and 2016. The assets and liabilities of this activity at 31 December 2016 are presented on a separate line in the balance sheet  Currency effects were again significant, with the Colombian peso and Brazilian real declining against the euro by an average -9.7% and -4.0%, respectively. However, the closing exchange rate indicated that these currencies were beginning to improve against the euro

Via Varejo (including Cnova Brazil) has been reclassified under discontinued operations.

2015 Casino debt in France presented based on the 2016 scope

21 Rallye – Investor Presentation – May 2017

FRANCE RETAIL: GOOD COMMERCIAL MOMENTUM IN 2016 (1/2)

Good commercial performance confirmed:

• Same-stores sales(1) up +1.6%(2) in 2016 and excellent performance for food sales, up +2.7% in 2016
• Roll-out of the Fresh Corner and new sections
• Ongoing non-food retail space reduction (-1.6% decline in total retail space in 2016)
• Market share at 2,7% (3), stable

Improvement of operating processes and development of franchise:

• Same-store sales up +0.9%(1) in 2016 and stable market share
• Continued improvement in operating processes and customer service (better-kept stores and checkout

wait times, development of offer for organic, locally-produced, fresh goods and fruits and vegetables)

• A total of 796 stores (of which 383 franchises) after a transfer of 143 stores to franchises in 2016

A unique and performing model:

• Organic sales up +1.6%(1) in 2016 with a same-store sales growth resumption in Q4
• Stable market share in food(3) and gains in apparel(4)
• Sustained high profitability
• Good performance from the 100%-organic Naturalia concept
• A total of 60 new store openings(5) in 2016, of which 20 Naturalia

Very good performance for Supermarchés Casino:

• Same-store sales up steadily since the beginning of the year and by +3.2%(1) in Q4 2016
• Renewed commercial momentum driven by a premium model focused on the shopping experience and

customer service, increase in customer traffic and in the average basket

• Organic growth of +3.8% in 2016
• Market share : +0,1pt(3)

22 Rallye – Investor Presentation – May 2017

FRANCE RETAIL: GOOD COMMERCIAL MOMENTUM IN 2016 (2/2)

Success of the Mandarine concept

• Continued roll-out of the Mandarine concept (60% of the store network renovated)
• More quality-oriented product range and new self-service counters generate higher customer traffic
• Same-store sales(1) were down -0.5% (store renovations accelerated) but traffic(1) was up +0.7%
• Continuous innovation: additional services, more snacking and private labels, faster checkout
• 1.7m active loyalty card holders

Ongoing modernization of the banners

• Modernization of the offering and concepts (integrated stores) and development of new services
• Continued streamlining of the store base: opening of 343 franchised stores and closure of 190 stores in
• 2016. Total of 6,065 stores, of which 77% operated as franchises and partnerships(2)
• Good performance by Vival and Spar franchises in 2016, with the introduction of numerous innovations

Property development

In €m 2015 2016 Consolidated net sales 18,890 18,939 Current operating income 337 508 Of which property development 167 87 Current operating income margin 1.8% 2.7% Ongoing operations in 2016

• Income using the percentage of completion method for transformation projects launched in 2014 and

2015 (10 HM and 5 Monoprix)

• Projects launched in 2016: restructuring of two hypermarkets sites and transformation of two Monoprix

23 Rallye – Investor Presentation – May 2017

Excellent operating and financial performance  Good organic sales growth of +10.8%(1) in 2016 and ongoing initiatives to leverage synergy among countries  In Colombia: satisfactory growth in non-food sales, successful launch of Cash & Carry and continued leadership of banners in each segment (Carulla, Surtimax and Super Inter), launch of the Viva Malls property development company in partnership with a Bancolombia (434,000 sq.m of GLA)  In Uruguay: good organic growth of +9.8%(1) in 2016, above inflation and lifted by high purchasing power and successful expansion of the convenience offering (+14 new stores in 2016)  In Argentina: organic sales up +34.9%(1) in 2016, in a very competitive environment marked by the recession, above-sector(2) performance from Libertad, and ongoing development of real estate projects

LATAM RETAIL: EXCELLENT DYNAMIC AT ÉXITO AND SALES ACCELERATION IN BRAZIL

In €m 2015 2016 at CER(3) 2016 Consolidated net sales 14,714 16,379 15,247 Current operating income 698 583 538 Current operating income margin 4.7% 3.6% 3.5% Refocusing on food sales at GPA with the end-2016 decision to sell Via Varejo  Sequential improvement in GPA Food same-store sales(1) over the year with the accelerated development

• f cash & carry (Assaí) and the first conversions of hypermarkets into cash & carry

 Successful revitalisation of hypermarkets, which are resuming market share gains under the new management's leadership: in Q1 2017, market share(4) gains recorded over 12 consecutive months and improvement in traffic  Another year of very strong growth for Assaí: organic sales(1) up a very strong +39.2% over the year thanks to the success of the cash & carry model, sustained expansion with 13 new store openings during the year, of which 2 conversions. In Q4 2016, Assaí represented 36% of GPA Food's sales (vs 30% in Q4 2015) (excluding GPA Food)

24 Rallye – Investor Presentation – May 2017

 The E-commerce segment now comprises Cdiscount and is refocused on France  GMV(1) of €2,994m, up +13.6% on a same-store basis compared to 2015  The marketplace's share of total GMV stood at 31.4% in Q4 2016 vs 28.1% in Q4 2015  842m visits, which represent an increase in traffic of +10.8% on a same-store basis  53% of the traffic in 2016 is generated by mobile devices, which represent an increase of +503bp compared to 2015  Enhanced service:

 Same-day delivery of large packages (>30 kg) Monday through Saturday  Delivery of small and medium-sized packages (<30 kg) 7 days a week and with scheduled drop-off  Launch of streaming (Cstream), mobile phone (Cdiscount Mobile) and Cdiscount Cloud services  The number of “Cdiscount à volonté” (“at will”) members more than doubled between end-2015 and end- 2016  Positive EBITDA and smaller operating loss thanks to the marketplace's profitable growth and the closure of loss-making sites

CDISCOUNT: SHARP INCREASE IN TRAFFIC AND CONFIRMED SUCCESS FOR THE MARKET PLACE

In €m 2015 2016 GMV(1) 2,709 2,994 Consolidated net sales 1,708 1,843 EBITDA (17) 10 Current operating income (39) (11)

25 Rallye – Investor Presentation – May 2017

 RALLYE - Financing & Liquidity  Casino  Appendices

• Casino
• Group GO Sport

AGENDA

26 Rallye – Investor Presentation – May 2017  Groupe GO Sport business volume over €930m in 2016, up sharply (+11%), driven by the development of all store networks (integrated, affiliates and e-commerce)  Net sales of €749m, up +3.5% on a same-store basis and using constant exchange rates  Consolidated EBITDA and trading profit up for the third year in a row  All networks combined, a total of 558 stores (319 Go Sport/Twinner and 239 Courir) at December 31, 2016, of which 87 abroad (69 GO Sport and 18 Courir)

3.5% 3.2% 2.9%

• 4.6%

2013 2015 2014 2016

ONGOING GROWTH AT GROUPE GO SPORT IN 2016

Ongoing same-store sale growth, using constant exchange rates, at Groupe GO Sport

27 Rallye – Investor Presentation – May 2017

STABLE SAME-STORE SALES FOR GO SPORT FRANCE IN 2016

 Net business volume over €430m in 2016, up +3.9%  Same-store sales stable over the year  Network of 140 stores (both integrated and franchises) in France compared to 124 at year end 2015  Accelerated expansion of the affiliates network, with 34 stores, twice that of end 2015  Successful launch of the GO Sport Montagne banner, through the conversion of 72 stores formerly under the Twinner banner  Sustained growth of e-commerce and reinforced multichannel strategy: online purchasing terminals installed in stores and successful launch of e-booking  Successful reopening in April 2016 of the Paris Les Halles store, over 2,600 square meters  Ongoing development of the banner’s loyalty scheme, with near 4.7m of bearers of the Feelgood loyalty card at year end 2016, after c.800,000 new members during the year  Ongoing cost optimization (rents, logistics,…)

28 Rallye – Investor Presentation – May 2017

SEVENTH YEAR OF CONSECUTIVE GROWTH FOR COURIR

 Net business volume of more than €270m in 2016, up +24%, and a network of 218 stores (integrated and affiliates) in France at year end, compared to 197 at the end of 2015  Seventh consecutive year of sales growth for the banner  Development of the banner’s market share through all channels:

• Successful integration of 12 stores formerly owned by Bata, after a first acquisition of 18 Bata stores in 2015
• Continuing expansion of the affiliates network in France, with 33 stores at year end 2016, compared to 23 at the end
• f 2015
• A reinforced multichannel strategy, with the successful launch of click & collect. The e-commerce website shows

promising growth and is now the first store of the network in terms of sales  Increased presence on social networks (Facebook, Instagram) which allows for more frequent and customized interactions with the banner’s target audience.  Ongoing development of the banner’s loyalty program, with 1.6m card bearers after more than 270,000 new members over the year  Good profitability

29 Rallye – Investor Presentation – May 2017

ABROAD: ONGOING EXPANSION IN FRANCHISE AND IN POLAND

In Poland  Sales up +4.2% on a same-store basis and using constant exchange rates, driven by growth of both clients and volumes  Ongoing expansion in 2016, with the opening of 2 stores during the year. The network totals 32 stores at year end (of which 1 Courir)  More than 800,000 members of the banner’s loyalty scheme, whose contribution to sales is on the rise International franchises  An activity that allows GO Sport and Courir to comfort their status as international brands  Business volume up strongly in 2016  Buoyant expansion in 2016, for both GO Sport and Courir

• 17 openings during the year
• Openings in new countries

(among which Congo and Malta)  A great potential for further development

30 Rallye – Investor Presentation – May 2017

DISCLAIMER

This presentation contains forward-looking information and statements about Rallye. Forward-looking statements are statements that are not historical facts. These statements include financial forecasts and estimates and their underlying assumptions, statements regarding plans,

• bjectives, and expectations with respect to future operations, products and services, and statements regarding future performance. Forward

looking statements are usually identified by the terms "expects", "anticipates", "believes", "intends", "estimates", and other similar expressions. Although the management of Rallye believes that the expectations reflected in such forward-looking statements are reasonable, investors and holders of Rallye securities are warned that this forward-looking information and these statements are subject to various risks and uncertainties, many

• f which are difficult to predict and generally beyond Rallye’s control, and which could cause actual results and developments to differ

materially from those expressed in, implied, or forecast by the forward-looking information and statements. These risks and uncertainties include those discussed or identified in Rallye’s public filings with the Autorité des Marchés Financiers (“AMF”), including those listed under “Risk Factors and Insurance” in the Registration Document filed by Rallye on 12.04.2017. Except as required by applicable law, Rallye makes no commitment to updating any forward-looking information or statements. This presentation was prepared solely for information purposes, and must not be interpreted as a solicitation or an offer to purchase or sell transferable securities or related financial instruments. Likewise, it is not providing, and should not be considered as investment advice. It has no regard to the specific investment objectives, financial situation or particular needs of any recipient. No representation or warranty, either express

• r implicit, is provided regarding the accuracy, comprehensiveness, or reliability of the information contained in this document. Recipients should

not consider it as a substitute for exercising their own judgement. All the opinions expressed herein are subject to change without notice. This presentation and its contents are proprietary information, and cannot be reproduced or disseminated in whole or in part without the Rallye Group's prior written consent. .