investor’s presentation...q growth in total revenues by 12%, and of the gross margin by 10 %...

October2019

INVESTOR’S PRESENTATION

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

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SUMMARY

LABEL’VIE GROUP

DEVELOPMENT STRATEGY AND H1-2019 RESULTS

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BEST FINANCIERE

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P. 21 APPENDICES


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

INVEST in LABEL’ VIE

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• 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

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• 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.

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• 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.

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• A reference shareholder, a subsidiary of Best Financière which operates in several sectors, including distribution, commercial real estate and medical equipments.

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• A steady dividend distribution rate throughout the duration of the business plan.


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 f ranchise 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 proper t ies 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 1.1791.836

4.8885.4015.672

5.7776.325

6.7287.557

8.2759.033

200420052006200720082009201020112012201320142015201620172018

IPO Acquisition

of Métro

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x 8


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

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LABEL’VIE GROUP


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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


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


MAJOR H1-2019 EVENTS H1-2019 OPENINGS

Ø  7 new stores opened in H1-2019

Ø  99 stores at June 30th, 2019

Enseignes du Groupe Supermarchés Hypermarchés Hyper Cash Total Groupe

Points de vente en déc. 2018 73 8 11 92

m² de ventes 83 034 44 800 59 564 187 398en % du total Groupe 44% 24% 32% 100%

Ouvertures 7 0 0 7

m² ouverts 4 468 0 0 4 4680

Points de vente S1-2019 80 8 11 99

m² de ventes 87 502 44 800 59 564 191 866en % 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


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

Managessupermarkets&theGroup’sCentralOffice

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


q GrowthinTotalRevenuesby12%,andoftheGrossMarginby10%comparedtoH1-2018q DecreaseoftheGrossMarginRatioby38bps(-48bpsindirectmargin:-56bpsAtac;-58bpsCRFMkt).q DecreaseofOperatingExpensesby-15bpscomparedtoH1-2018from13.8%to13.7%q +5%inEBIT(dropof32bpsinration;-22bpsinEBITDA;-9bpsindepreciation)q StrongleapofIncomebeforeTaxesby23%and+44bpsinratioterms.q JumpofNetincomeby20%and+27bpsinratioterms(4.0%ofsalesvs.3.7%previously)

H1-2019 RESULTS INCOME STATEMENT H1-2019 VS H1-2018


SALES GROWTH H1-2019 BY FORMAT

+9.0%

+12.0%

+13.1%

8 retail outlets

80 retail outlets

11 retail outlets

§  Increaseinhypermarketsalesby9%thanksto:

q Like-forlikesalesgrowthof4%q SalesfromCarrefourTetouanopenedinMay2018.

§  Increaseinsupermarketsalesby+12%thanksto:

q Like-forlikesalesgrowthof3%q Storeopeningsdonein2018and2019

§  Increaseinhyper-cashsalesby13.1%inH1-2019

H1-2019 Results


BALANCE SHEET CASH FLOW & WORKING CAPITAL

Résultats Annuels 2016

q Decreaseincashandcashequivalentsby192MADmcomparedtoitslevelinDecember2018dueto:q DecreaseofWorkingCapitalby-32MADmduetoadelayofcontractingcommercialloans;q DecreaseofOperatingWorkingCapitalby301MADmduetothesuppliersaccount(RamadanandChaabanseasonalimports);q Gaininothercurrentassetsby140MADm(Dividendsof150MADmtobedistributedinSeptember)

q Retentionofthenetdebtratio42%ofthepermanentfinancingq Investmentof519,4MADmachievedin2018q OnDecember31,2016theworkingcapitalreached733MADm,representing33daysofsales.

H1-2019 Results

Value Dayofsales Value Dayofsales Value DayofsalesVALUEWorkingCapital 213077 9 181549 8 -31528 -2

Equity 1853543 82 1873801 81 20258 -1Netincome 288401 168710Dividends -150000 -150000

RightsIssue - - MinorityInterest 4162 1548FinancingDebt 2307390 102 2324210 100 16820 -2

Newloans 324488 80000Bonds - -

Reinmbursements -120837 -63179PermanetFinancing 4160933 185 4198011 181 37079 -3

NetDebtRatio 42,8% 47,4% 0 0FixedAssets -3947855 -175 -4016462 -174 -68607 2

Investments 519418 223481Sale -55300 -394

Depreciation -275085 -154481

NormativeOperatingWorkingCapital 732927 33 431860 19 -301067 -14Inventory -1478326 -66 -1471811 -64

Receivable/Debt 2211253 98 1903671 82

OtherCurrentsAssets -420897 -19 -280498 -12 140399 7

TREASURYANDPLACEMENTS 525106 23 332910 14 -192196 -9

FINANCIALINDICATORS2018 2019 Change


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SUMMARY

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DEVELOPMENT STRATEGY AND H1 2019 RESULTS

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APPENDICES OPENING 2019

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Magasins Superficie en m² Ville Date Ouverture prévue Etat d'avancement

HautAgdal 500 Rabat 01/01/2019 Ouvert-Janvier2019Maamoura 650 Kenitra 01/02/2019 Ouvert-Février2019ElHouda 480 Agadir 01/06/2019 Ouvert-Mars2019Mansouria 725 Mohammadia 01/06/2019 Ouvert-Mai2019Oasis 700 Casablanca Nonprévue Ouvert-Mai2019Semlalia 613 Marrakech 01/11/2019 Ouvert-Mai2019DarBouazza 800 Casablanca 31/12/2019 Ouvert-Juin2019KamalParc 815 Mohammadia 01/06/2019 Ouvert-Juillet2019MohammedV 500 Casablanca 01/06/2019Ouarzazat 800 Ouarzazat 01/06/2019ChampsdeCourse/LaVilla 900 Fès 01/11/2019Gauthier 850 Casablanca 01/11/2019Villeverte 500 Casablanca 31/12/2019


Market

TémaraSadet 4500 Rabat 01/12/2019DarBouazza 4500 Casablanca 01/09/2019ExtensionTarga 1700 Marrakech 01/08/2019


Hyper

AgadirTikiouine 4300 Agadir 01/07/2019MagasinNonidentifié Adéfinir Encoursdeprospection

Atacadao

investor’s presentation...q growth in total revenues by 12%, and of the gross margin by 10 %...

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