Rallye / Casino - main points

All,

Casino’s and Rallye’s results today had more than a few interesting points.

LatAm:

- Results are curiously weak. The company pointed to tax credits received in the prior year, but those seem to be booked below EBITDA. GPA to hold a call at 3pm UK time.

- We think Casino should retain a net E160m of proceeds from the planned LAtAm transactions.

France Retail:

- Plenty of positive commentary, but none of it arrived in earnings. EBITDA is largely as expected.

- With WC cash outflows of E250m the company has resumed the H1 out - H2 in pattern of previous years (before 2018), a pattern allegedly linked to high Christmas purchases that are only paid for in the new year. We therefore expect a WC inflow in H219.

- The cash from the Apollo deal has not yet arrived.

- Cash at Casino Finance has dwindled to just over E600m, some E600m down in the last six months, primarily explained by the WC outflow and negative FCF, not yet made up for with cash from Apollo.

Rallye:

- the E500m credit facility (E200m drawn) signed by BNP in September 2018 benefitted from the following pledges (in structured finance form):

- All of the cash is pledged and some. Pledged E145m / at hand E104m.

- All of the investment portfolio is pledged

- All of Go Sport is pledged (sold or unsold)

- 8.7% of the shares (see previous comments). Perhaps the silver lining is that not more shares are pledged.

- In total, E1,625m of the banks are secured, with only E210m of unsecured banks and E58m of CP

- Total debt at Rallye amounted to E2,925m, some 50m less than we had.

Tomas is going after the various loose ends and is available.

Wolfgang