Investor Day

The Dual "Retail & Real Estate

Development" Model: ALCUDIA

J. EHRMANN
Executive Managing
Director, Real Estate
& Expansion

9-10 June 2008

 While more complex, the dual model is also more sustainable for the
While retailing
more business
complex, anddual
the creates more is
model value for more
also the Group
sustainable
for the retail business and creates more value for the Group

France (Alcudia)
and emerging markets

a
Retail Alcudi Real Estate
development development

Mature markets (France) 1 Innovative real estate

development projects
& precision retailing Dual

2
Solo 3
Solo

Groupe Casino’s
Diversity of formats real estate Financial
Fast/Simple/Targeted development strategy engineering

INVESTOR DAY 08 2
 While more complex, the dual model is also more sustainable
for the retail business and creates more value for the Group

Housing

Hyp
Stand-alone
hypermarket
Hyp

Offices

Hyp
Supermarket

Mall
Shopping centre

INVESTOR DAY 08 3
 While more complex, the dual model is also more sustainable
for the retail business and creates more value for the Group

Housing

Mall
Hyp
Hyp
Stand-alone
hypermarket
Hyp

Offices

Hyp
Supermarket

Mall
Shopping centre

INVESTOR DAY 08 4
 While more complex, the dual model is also more sustainable
for the retail business and creates more value for the Group

Housing

Mall
Hyp
Hyp
Stand-alone
hypermarket
Hyp

Offices

Hyp
Supermarket

Mall Mall
Shopping centre
Mall

INVESTOR DAY 08 5
 While more complex, the dual model is also more sustainable
for the retail business and creates more value for the Group

Housing

Mall
Hyp
Hyp
Stand-alone
hypermarket
Hyp

Offices

Hyp
Supermarket

Mall Mall
Shopping centre
CC
Mall

INVESTOR DAY 08 6
 Critical mass in shopping centres
is a key business driver
Retail
development
Î Food retailing is at heart a flow
business
Î Traffic is directly correlated with
a store’s offering and shopper appeal
Î Traffic is stimulated by the amount
and quality of the offering
Î The impact of critical mass far offsets
any cannibalisation
Î Stand-alone stores can be threatened
from above by a new mall and from
below by a niche retailer
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+ Real Estate
development
Î Retail property development creates
value because it is closer to retailing
than to a property leasing business
Î Aligning mall merchandising with
today’s shopping trends
Î Attracting new banners, capable
of generating additional footfall
Î Optimising rental income/organic
growth
Î Managing shopping centre events
7
 The Dual Model: the Alcudia programme

SCOPE: 109 CENTRES

Asset
udia
Volume
Al c value

Î Square metres Î Assets built

Î Customer flows
Î 465,000 sq.m of additional
Î Revenues
retail space
Î Margin

INVESTOR DAY 08 8
 The Dual Model: international development

Vietnam
Venezuela

Brazil
Thailand
Colombia

Uruguay
Argentina

INVESTOR DAY 08 9
 “Solo” Real Estate Development: an opportunity to
leverage our real estate expertise outside the group

Real Estate
development

Gains or Assets
if disposals

Î 15 projects Î 16 projects Î Assets built

INVESTOR DAY 08 10
 The Dual Model: an ambitious, complex strategy

IPO/REIT OPCI
Development
Retail park Property
management
Project owner

Land Land
Parking lots Landbank Co-
development
Offices/Hotels

Which • People
demands
• Expertise
• Financial engineering

INVESTOR DAY 08 11
 The group’s property development
strategy is focused on creating asset value

Several paths to value creation

by capitalising on the expertise of our teams

Actively managing Enhancing the Growing the real Partnership Leveraging the dual
assets every day, appeal of our estate with Whitehall model to develop our
to capture all of the shopping centres development for real estate banners in Thailand,
centres’ reversionary in France by business in development Vietnam, Venezuela
potential doubling their retail France by projects and Colombia
space over the next creating new in Eastern
five to seven years development Europe
structures

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 Developing our property assets has to be
supported by an active asset turnover strategy
Î Constantly manage the portfolio to sell and lease back mature property and acquire
assets with high value creation potential
Î Use sophisticated, innovative financial engineering techniques as needed

An active asset management strategy in place since 2005

Withdrawal from Disposal of standard Capturing the value Sophisticated Sale and leaseback
a non-strategic properties with no of our assets financing of mature property
country value creation potential assets

06 05 06 05 07 07
20 20 20 20 20 20
Disposal of IPO OPCI AEW
Polish real Head office sold Appraised assets: Partnership Immocommercial
estate assets Warehouses sold €957m with Whitehall €455m
€550m €288m in Poland
Market value: > €700m OPCI Immocio
€2.2bn €266m

INVESTOR DAY 08 13
ALCUDIA
 MERCIALYS: a pure retail property company

Î A portfolio comprising only retail properties

• 81% of which are leased to non-Casino banners

Î An appraised value of €1,914m at 31 December 2007

• GLA: 611,600 sq.m
• 167 sites, of which 97 malls

Î A growth portfolio
• €97.7m in invoiced rents, up 21.1% in 2007
• Exceptional reversionary potential
• 2008 to 2009: targeted double-digit growth in rental income and
operating cash flows before non-recurring items (12% forecast for 2008)

Î A listed company, 60% owned by Casino

• Market value: €2.2bn (at 30/05/08)

INVESTOR DAY 08 15
 ALCUDIA: an ambitious project to enhance
the value of our shopping centre assets

Î Analysis of all of our shopping centres in 2006 and 2007

Î Identification of a potential 465,000 sq.m of retail space

(malls and mid-sized stores) to be created out of the existing
480,000 sq.m…

Î … thereby doubling the mall and mid-sized store space in the

analysed portfolio

Î Deployment of 109 projects starting in 2008

Î A 5-7 year project

INVESTOR DAY 08 16
 3 major priorities for 2008
File a maximum
number of CDEC
regional planning
permit requests
Prepare the pipeline of sites
deployed in 2009-2012
• High quality projects, a
sustainable development
approach
• An appropriate internal
organisation, with cross-
disciplinary working groups
GET THE PERMITS FOR
TOMORROW’S DELIVERIES
INVESTOR DAY 08
Build the extensions Renovate and theme 10
and restructure malls in 2008, which
10 centres won’t be restructured
until 2011-2012
Instil the “neighbourly spirit”
Open 5 centres in 2008
Renovate the centres that need
it the most
Adopt a defensive strategy
• Opening permits already • No need for CDEC permits
granted or unnecessary
• A defined identity
• Dedicated internal
organisation
BUILD AND DELIVER THEMATISE
17
 Example of a development project: Annecy Seynod
FOCUS ON 2008 PROJECTS

Existing Phase 1 Phase 2

Hypermarket 7,441 sq.m 9,041 sq.m 9,041 sq.m
Mall & MS GLA 5 055 sq.m 9 725 sq.m 16,500 sq.m
Parking spaces 1,300 1,357 1,500

BEFORE AFTER

Schedule
2008 2009 2010
Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
CDEC Received on 29/02/08
Building permit

Works
Letting process SIEC
Opening March 2010
Sale to
Mercialys April 2010

INVESTOR DAY 08 18
 Example of a development project: Annecy Seynod
FOCUS ON 2008 PROJECTS

BEFORE AFTER

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 Example of a development project: Besançon
FOCUS ON 2008 PROJECTS

Existing Future
Hypermarket 9,980 sq.m 9,980 sq.m
Mall & MS GLA 8,741 sq.m 22,040 sq.m
Parking spaces 2,160 2,160
BEFORE AFTER

Planning 2008 2009 2010

Jan Feb Mar Apr May June Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun July Aug Sept Oct Nov Dec
CDEC Received on 17/10/07 (MS)
Building permit

Works

Letting process

Opening Dec 2008

Sale to Mercialys Dec 2008

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 Example of a development project: Besançon
FOCUS ON 2008 PROJECTS

BEFORE AFTER

INVESTOR DAY 08 21
 Example of a development project: Valence Sud
FOCUS ON 2008 PROJECTS

Existing Future
Hypermarket 6,836 sq.m 7,887 sq.m
Mall & MS GLA 2,296 sq.m 5,093 sq.m
Parking spaces 769 878

BEFORE PHASE 1 PHASE 2

Planning 2008 2009 2010

Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
CDEC Received on 18/01/08
Building permit Phase 2
Works Phase 1 Phase 2
Letting process Phase 1 Phase 2
Opening Oct 2008 ph 1 Oct 2010 ph 2
Sale to
Mercialys Apr 2008 Apr 2011

INVESTOR DAY 08 22
 Example of a development project: Valence Sud
FOCUS ON 2008 PROJECTS
BEFORE AFTER

INVESTOR DAY 08 23
 Theme malls
FOCUS ON 2008 PROJECTS

Î Objectives:
• Enhance the centre’s attractiveness to support
Géant Casino sales and improve retail appeal.
• Display the Red Line that will eventually be deployed
at every mall. Start today, without waiting for implementation
of the Alcudia programme.

Î Theming: the “Neighbourly Spirit” concept

• Simple works: façades, parking lot and mall
public areas.
• Decoration, signage, Red Line visual elements.

Jan Feb March April May June July Aug Sept Oct Nov Dec
Adm. authorizations
External works
Administrative authorizations
Internal works

INVESTOR DAY 08 24
 Conclusion:
taking action, anticipating the future, innovating

Î Operational deployment:
• 10 centres will be renovated in 2008

• 17 centres will have opened as Neighbourly Spirit malls within a year

Î Forward-looking commitment: the Research and Development

committee
• Looking over the horizon to adapt our malls to future expectations.

• Preparing retailing practices scenarios.

• Defining the most efficient shopping centre for the Casino Group
10 years from now.

INVESTOR DAY 08 25