Groupe Casino
Annual Report 2017

Plain-text annual report

2017 Annual and Corporate Social Responsibility Performance Report E stablished in France 120 years ago, today the Casino Group is a leading food retailer, with more than 12,200 stores worldwide across France, Latin America and the Indian Ocean region. Driven by its commitment to convenience, attentiveness to customer needs and a passion for retail, the Group has developed strong, dynamic and complementary banners that are able to innovate and transform in line with their markets. Every day, its 227,000 employees work to understand, anticipate and adapt to new customer expectations. Enhancing their businesses with innovative measures for concrete solutions, they are actively engaged in promoting sustainable consumption, which goes hand-in-hand with the Group's ongoing mission of “Nourishing a world of diversity”. CONTENTS Interview with Jean-Charles Naouri P.2 2017 at a glance P.6 Key figures P.12 Executive Committee P.14 "I choose the kind of store that reflects who I am" P.16 "I only want to shop somewhere when I can be sure how they source their produce" P.26 "I need to shop conveniently in-store and on the web" P.36 "For me, shopping is also about making a social statement" P.52 "I like to shop where there is a neighbourhood feel" P.46 Distinctive banners that are close to their customers P.62 Governance, CSR and finance: a strong, sustainable model P.94 CASINO GROUP 2017 ANNUAL REPORT Interview with Jean-Charles Naouri Chairman and Chief Executive Officer of the Casino Group Consumer expectations are changing dramatically. How is the Casino Group responding? J-C.N. — Consumers are more demanding than ever, and their needs increasingly diverse. Consumption is becoming more polarised, with some customers proving to be very attached to product quality and provenance, and sensitive to the novelty of concepts and services, and others driven by the search for fair prices. In this environment, the Group has demonstrated the effectiveness of its multi-format and multi-brand model in supporting change, while at the same time keeping a step ahead. The Group’s biggest strength is its expertise in precision retailing. We have developed banners with strong personalities that are providing increasingly creative responses, tailored to customer expectations. Two prime examples are Assaí in Brazil and Monoprix in France, one currently rolling out its cash & carry model in regional Brazil and expanding into Colombia – all at a cracking pace – and the other steadily enhancing its premium and affinity-based concept with innovative solutions for its urban customers. Does the polarisation between the discount and premium models represent the new equilibrium in bricks-and-mortar food retail? J-C.N. — Yes, if we add in the notion of convenience, which is our legacy format and the source of our robust regional roots and close ties with our customers. We are stepping up the transformation of our banners to boost their positioning in these more promising formats. For example, we are increasing the pace of conversion of Extra hypermarkets in Brazil to Assaí cash & carry stores. At the same time, we are continuing to upgrade our food offering, with a growing proportion of fresh produce in the mix, and raising the standard of our private-label products with increasingly healthy and more responsible product lines. We have also opened two new banners dedicated to more responsible consumption – Franprix Noé in France and Carulla FreshMarket in Colombia – and are particularly proud of them. Taking a cross-cutting approach across all of our host countries, we’re meeting a demand shared by all consumers. How do international synergies represent a growth driver? J-C.N. — We embarked on a major plan back in 2016 to create synergies between our brands in Latin America, and it has started to pay off. We rolled out the compelling FreshMarket store concept, which originated in Uruguay, in our four host countries in Latin America this year. Another example is cash & carry, where expertise developed in Brazil has allowed us to replicate the model quickly in our Surtimayorista stores in Colombia. Also this year, we are opening Cameroon's first cash & carry store under the Bao banner. But synergies are not confined to cooperation between our various geographies; they are also about gradually breaking down the barriers between bricks-and-mortar and digital retail, and building a single omni-channel approach. Does the arrival of e-tailer Cdiscount in Géant Casino hypermarkets mark a turning point in the Group's omni-channel strategy? J-C.N. — We have implemented an aggressive strategy in e-commerce for many years. Cdiscount, which we acquired in 2000, today ranks as the number two in the French market. It logged close to one billion visits this year and is still gaining market share. This is an exemplary success, based on strong synergies with the network of bricks-and-mortar stores, particularly in purchasing and logistics. The opening of Cdiscount showrooms in Géant Casino hypermarkets is allowing us to go even further by putting the hypermarket’s non-food offering under the e-tailer’s banner. The result is an original, genuinely omni-channel concept combining the best of both worlds. “We have developed banners with strong personalities that are providing increasingly creative responses, tailored to customer expectations.” 2 3 CASINO GROUP 2017 ANNUAL REPORT What are some examples of the Group’s innovation capacity in stores? J-C.N. — Our brands excel at anticipating and encouraging new practices through innovative solutions, with the clear aim of simplifying everyday shopping and making life easier for customers. In Brazil and France alike, the Group's banners have developed mobile applications that combine paperless loyalty programmes, geolocation, personalised promotions and, more recently, the possibility for shoppers to scan items off the shelves themselves and pay for them directly online using their smartphone. I should add that innovating also means developing sustainable solutions that reduce our environmental footprint. This is why we are rolling out on-foot delivery services and other clean modes of transport, while also developing our sites’ energy efficiency and solar power generation capacity. “In our historical retail business, we have built a unique value creation model, developing ‘satellite’ expertise.” What is the Group's development strategy in food e-commerce? J-C.N. — We have all the assets we need to play a leading role in the new food retail landscape. Logistics are the key to profitability here, which is why we have decided to build up our expertise by forming partnerships with the benchmark players in this field. How will the partnerships with Ocado and Amazon work? J-C.N. — With British player Ocado, we are implementing a highly efficient food e-commerce solution, both technologically and economically, developed by an undisputed leader in the field. The systems developed by Ocado will be used by our own logistics teams, which will allow us to adapt to the specific needs of our banners and give us the ability to keep up with our customers’ emerging expectations. Monoprix will be the first of the Group’s banners to benefit, starting in early 2020, and will confirm its position as the omni-channel leader in urban retailing, further strengthened by the acquisition of Sarenza, France's leading shoe e-tailer. In turn, the commercial partnership signed with Amazon Prime Now will enable Monoprix to leverage the services of an expert in last-mile logistics. The idea is to provide Amazon Prime Now subscribers with a specific offer, rounding out the very comprehensive delivery system already in place at Monoprix. Are new jobs emerging as the pace of change accelerates? “We have all the assets we need to play a leading role in the new food retail landscape.” innovation, open to diversity and nurtured by caring management practices. Our aim is to help our teams embrace change, to continue to evolve in line with our customers. — J-C.N. — We have built a unique value creation model based on our historical retail business, developing "satellite" expertise allowing us to control our operations across the board, in commercial real estate, energy efficiency and solar power production, as well as data analysis and logistics. We are also using innovative training tools to enhance the skills of teams whose professions are changing, particularly in traditional food services. How does the Group keep its values alive in today’s environment? J-C.N. — In addition to developing the skills of each and every member of personnel, we are working to expand the reach of our values. Foremost of these are ethical values, which are central to the Casino Group’s strategy. In their daily work, employees are expected to fully comply with the rules of conduct and obligations set out in the Ethics Charter and the Code of Ethics and Conduct. We are also working to foster an agile mindset constantly informed by 4 5 CASINO GROUP 2017 ANNUAL REPORT 2017 AT A GLANCE France: driving a faster transformation Positioned to focus on their most promising formats, today more than ever the Casino Group banners are drawing on their distinctive personalities to deliver innovative solutions that meet customer expectations. They are strengthening their omni-channel offering in preparation for tomorrow's trends. Celebrity chef Norbert Tarayre becomes the new ambassador for Leader Price products. Opening of the first vegan-exclusive organic stores in France with Naturalia Vegan. Inauguration in Paris of Franprix Noé, a new "lab" banner for testing responsible consumption solutions. R A M E N U J Y L U J T P E S Roll-out of Franprix’s mobile app that allows customers to have their groceries delivered to their doorstep in 30 to 40 minutes. The app was downloaded 400,000 times in six months. 2017 6 Installation of the first Cdiscount showrooms in Géant Casino hypermarkets. The stage is set for Cdiscount’s 600 best-selling home appliances, consumer electronics and furniture, all at web prices. The ultimate “phygital” consumer experience. Casino Supermarkets brings premium food products and high-quality produce together in a new market space with its own "factory setting". T C O T C O V O N C E D Launch of the new Casino Max mobile app, downloaded by 400,000 customers as of late 2017. The app, which can be used in all Géant Casino hypermarkets and Casino Supermarkets, combines a virtual loyalty card with personalised promotional offers and payments via smartphone. A new strategic partnership in food e-commerce is signed with UK pure player, Ocado. Monoprix announces its plan to acquire online shoe retailer, Sarenza. Through its business partnership with Amazon, Monoprix becomes the first French retailer to offer its range of food products to Amazon Prime subscribers. R A M N A J 2018 7 CASINO GROUP 2017 ANNUAL REPORT 2017 AT A GLANCE Latin America: a year of innovation The powerful synergies between the Casino Group banners means they are ideally placed to meet the needs of Latin American consumers by accelerating the development of innovative store concepts and tailored digital solutions. Boost in the digital transformation of the GPA banners with the new personalised promotional offers platform, “Meu Desconto”. The new function, accessible via the Pão de Açúcar Mais and Clube Extra loyalty apps, is programmed to generate personalised promotional offers based on the purchasing history of each customer. Launch of Puntos Colombia following the partnership between Éxito and Bancolombia loyalty programmes which boast 15 million users. Introduction of the new “Caixa Express” service on the Pão de Açúcar Mais app which lets customers reserve a time to go through check-out. First Pitch Day for Pão de Açúcar: the call-for- project's three winning start-ups benefit from a mentoring programme on how to deploy their digital solutions. Acceleration in the conversion of Extra hypermarkets to the cash & carry format: 15 of the 20 Assaí stores opened during the year are the result of such conversions. Inauguration of the first Carulla FreshMarket store specialising in fresh, responsibly-sourced produce in Bogotá. Tried and tested by Éxito in Uruguay, the store concept is tailored to new customer expectations for a more local offering, handcraft production and in-store preparation areas. Éxito joins up with the Rappi mobile app to offer free deliveries to customers that live less than 35 minutes away from the centre of six major Colombian cities. Launch of the Passaí credit card: 110,000 cards are sold in 70 Assaí stores in just 4 months. Opening in Cartagena of the 8th store under Colombia's Surtimayorista cash & carry banner inspired by the success of Assaí. N A J B E F R A M I L R P A Y A M Y L U J G U A T P E S V O N 2017 8 9 CASINO GROUP 2017 ANNUAL REPORT 2017 AT A GLANCE Responsibility: concrete action The Casino Group is committed to serving the common good in each of its host countries, introducing concrete initiatives to encourage responsible consumption, combat discrimination, reduce its environmental footprint and help the most vulnerable members of society. Start to a new and ambitious collaboration with three expert animal rights groups The Group commits alongside the Fondation Droit Animal, Ethique et Sciences (LFDA), Compassion in World Farming France (CIWF) and Association Œuvre d’Assistance aux Bêtes d’Abattoirs (OABA) to develop labelling that will better inform consumers of animal welfare standards for products available in stores. Franprix is named "Orange Day Champion" by UN Women for its commitment to the elimination of violence against women. All of the Group's banners actively took part in Orange Day 2017 to collect funds through shared product campaigns and social media. The Éxito Foundation distributes more than 600,000 Christmas meals to Colombian families, part of which were funded through customer checkout donations. First edition of the GPA Diversity Week dedicated to combating all forms of discrimination. T P E S V O N C E D Casino implements a strict framework for sourcing wild sea bass in order to protect the species. Monoprix wins the 2018 Grand Prix Essec award for sustainable retailing for its innovative "Shop&Give" and "Tous Cultiv’acteurs" programmes. B E F B E F 2018 Organisation of the first Caring Management Practices Awards: 130 initiatives submitted and 16 winners selected by the Group Executive Committee. The Carulla stores become the exclusive distributors of meats from Colombia's first sustainable livestock farm to be awarded the Rainforest Alliance Certification seal. Y L U J G U A With the Casino Corporate Foundation's "Tous en Scène" outreach campaign, the banner teams collect over €140,000 in donations for partner associations. E N U J Installation of the largest urban solar farm in Brazil on the roof of the Assaí store in Goiânia. I L R P A Y A M 2017 10 11 CASINO GROUP 2017 ANNUAL REPORT 2017 key figures Results 37.8 billion euros in consolidated net sales Stores Employees 12,271 around the world 226,606 around the world1 +3.2% organic growth2 in consolidated sales 9,221 in France 3,050 In Latin America 38% 93% women in management employees with fixed-term employment contracts -2% reduction in electricity consumption in stores (MWh) +26% organic produce in stores 39% employees under 30 +4.6% employees with recognised disabilities 1.242 billion euros in trading profit 372 million euros in underlying net profit, Group share Retailing no. 1 no. 1 in Brazil3 in Colombia E-commerce Cdiscount Exito.com no. 2 no. 2 in France in Colombia 12 13 1 Number of employees on payroll at 31 December 2017, including those on permanent/fixed-term contracts and full-time/part-time contracts – consolidated businesses only. 2 Excluding fuel and the calendar effect. 3 Traditional retail excluding cash & carry. CASINO GROUP 2017 ANNUAL REPORT Executive Committee Jean-Charles Naouri Hervé Daudin — Chairman and Chief Executive Officer — Merchandise Director, Chairman of Achats Marchandises Casino Franck-Philippe Georgin — Interim Human Resources Director and Executive Committee Secretary Carlos Mario Giraldo Moreno — Chairman of Éxito Colombia Antoine Giscard d'Estaing — Chief Financial Officer Paul Peter ESTERMANN — Chief Executive Officer of GPA Brazil* * Replacing Ronaldo Iabrudi as from 27 April 2018 Julien Lagubeau Jean-Paul Mochet Tina Schuler — Chief Operating Officer — Chief Executive Officer of Franprix and the Convenience Banners — Chief Executive Officer of Leader Price, Casino Supermarkets and Géant Casino Régis Schultz Arnaud Strasser Gérard Walter — Chairman of Monoprix — Corporate Development and Holdings Director Vice-Chairman of GPA — Chief Executive Officer, Logistics of Distribution, Casino France and Franprix-Leader Price 14 15 CASINO GROUP 2017 ANNUAL REPORT “I choose the kind of store that reflects who I am” Matthieu and Hugo, Lyon 16 To showcase their quality food offering, Casino Supermarkets have a new look that combines a warehouse feel with décor reminiscent of a traditional covered market. 17 CASINO GROUP 2017 ANNUAL REPORT Remaining attentive to customers’ needs Nurturing a commitment to convenience inspired by its origins, the Group has created a network of distinctive banners that know how to remain attentive to their customers’ needs in order to evolve alongside them. S i n c e 1 8 98 , w h e n G e o ff r oy G u i c h a r d a n d A n t o n i a Perrachon set up Société des Magasins du Casino in Saint-Étienne, the Group has maintained its customer focus throughout its development and expansion. This commitment to conven- ience and entrepreneurial spirit have continued to flourish over the years. Casino first began expanding its con- venience stores in France, which has nearly 5,400 Casino Proximités stores located across the country, of which 80% are currently operated under fran- chise agreements, as well as a unique urban convenience store network crea- ted by Monoprix and Franprix. The con- venience store format was also rolled out in Latin America, where the subsidi- aries of Éxito and GPA leverage their most promising concepts by opening small stores designed especially for those living in major cities. The commitment to convenience under- pins all of the Group’s banners and attentiveness to customers’ specific needs ensures each store’s individuality. This experience-based knowledge of consumers is combined with the power of digital tools. 2017 was shaped, for example, by the faster migration of loyalty programmes to dedicated apps, which enable the Group to maintain personalised relationships with its customers. CONVENIENCE IN A CLICK Brazil led the transition with the Pão de Açúcar Mais and Clube Extra loyalty apps. It then followed up in 2017 with the Meu Desconto platform, which uses algorithms to tailor promotional offers to each customer’s profile. Four million downloads were recorded in just six months. The launch of the Franprix and Casino Max apps in France aims to meet the same objective: enabling the banners to extend their relationships with custom- ers and gather data that can be used to better understand their behaviour and anticipate their choices. — 5,392 Casino Proximités stores in France 80% operated under franchise 14 million Extra and Pão de Açúcar loyalty programme members 18 — Whether in integrated or franchised stores, Petit Casino managers are in contact with customers on a daily basis. — The Shop&Go service at Franprix, a new convenience for city dwellers. ONLINE Using an algorithm that cross-references a customer’s shopping history, browsing data, geolocation and contextual information, Franprix can now post hyper-personalised ads to customers’ mobile devices at just the right moment. 3 QUESTIONS FOR Cyril Bourgois Director of Operations in charge of digital transformation, Strategic Planning and Operations Department — How do the new loyalty apps contribute to a better understanding of customers? Both in Brazil and in France, our banners have developed apps that use algorithms to aggregate data about the consumer habits of loyalty programme members. This allows us to anticipate their purchasing behaviour and personalise relationships with our customers to the highest possible level. What exactly is the purpose of the Meu Desconto platform? It’s a targeted promotional tool that enhances the loyalty apps of GPA banners. A similar function has been integrated into the new Franprix and Casino Max apps. The brands put promotional offers on the platform, which then sends those offers to the customers most likely to be interested. Promotional offers are significantly more effective as a result and can also be measured very accurately. And how does the customer benefit? As customers use the app, their purchasing preferences are recorded by the algorithm. So the offers they receive on their smartphone are continuously adapted to their changing needs and desires. — 19 CASINO GROUP 2017 ANNUAL REPORT 2017 ANNUAL REPORT Improving our stores Whether switching to the best banner, optimising the size of its stores or offering new services, one of the Group’s strengths is its ability to adapt. Géant Casino, for example, is reducing its non-food surface area and breathing new life into the Monthieu shopping centre. — Géant Casino is refocusing on food, with a huge market space and new preparation areas for its traditional product ranges. — Freeing up Géant Casino’s non-food surface area led to the renovation of the Monthieu (Loire region) shopping centre, which now hosts 21 additional stores and two large retail outlets, including a Fnac. 20 20 — Now located in the Monthieu car park, family restaurant À La Bonne Heure offers good quality meals in a friendly environment. — A Cdiscount showroom presents a stylish selection of furniture and electrical appliances at e-commerce prices. Customers can get a better feel for the products and access 50,000 references online using touchscreens. 21 21 CASINO GROUP 2017 ANNUAL REPORT Incorporating new habits Close to their customers, the Group’s banners are able to adapt rapidly to new consumer behaviours. They share best practices in order to drive faster progress. F ac tors s u ch a s t he g row i ng importance of the customer experience, more demanding food-quality expectations and increas- ingly nomadic lifestyles are drastically changing the way shoppers consume. The shift to take new consumer behav- iours into account picked up pace at the Group’s banners in 2017. During the year, Cdiscount completely renovated its mobile app, which now accounts for 60% of its total traffic, a portion that is continuously increasing. On the store side, the cash & carry concept is being boosted by changing consumer trends in Brazil, and the successful Assaí model is being repli- cated effectively in Colombia with Surtimayorista. The concept has even reached Cameroon, where the Group has inaugurated its first store under the Bao banner. To cater to their customers’ taste for high-quality snacks, qualitative banners are offering a new in-store eating expe- rience inspired by the healthy fast food trend. This is one of the distinguishing features of the new Fresh Market stores, which evolved out of synergies between qualitative banners in Uruguay, Colombia, Argentina and Brazil. The concept is based on a casual eating area where customers can access various counters offering quality food prepared on-site. FROM “PLACE TO SHOP” TO “HANG-OUT SPOT” In France, Franprix – the first to intro- duce rotisseries and fresh-squeezed orange juice machines – continued to innovate in 2017 by rolling out ultra-high-quality salad bars from its Swedish partner Picadeli, whose con- nected back office ensures optimum freshness. In addition to the tables and chairs in all of its stores and the outdoor seating offered in summer, the four Franprix Noé stores opened in Greater Paris include a co-working space designed to look like a living room. — 60% Cdiscount traffic from mobile devices +10% growth in the snacking range at Franprix stores in 2017 22 — Every month, 55,000 customers use the snacking area at the new Monoprix store in the Forum des Halles shopping centre in Paris. — Salads, quiches, pizza, cooked meals and fresh fruit snacks are prepared each day on-site by the store’s teams. Brazil: GPA speeds up its transformation Significant changes in consumer habits in Brazil have compelled GPA to update its banners through three key measures: 1. EXPANSION OF CASH & CARRY — G PA is continuing with its drive to convert stores to its dynamic Assaí banner. Of the 20 openings in 2017, 15 were conversions of Extra hypermarkets to the cash & carry concept, which led to spectacular growth in sales. These modern, air conditioned and well-lit stores appeal to individuals, who now make up half of the customer base. 2. MAKEOVER OF THE PREMIUM F O R M AT — R o l l e d o u t i n 50 stores, the new Pão de Açúcar concept focuses on providing a pleasant shopping experience and offers an extremely high-quality market area that includes a bakery, café, salad bar, sushi shop and rotisserie. 3. N E W P R I C E P O S I T I O N I N G STRATEGY — Price has become the top decision-making criterion for Brazilian consumers. Extra supermarkets a n d h y p e r m a r ke t s a r e t h e r e f o r e taking action, with a new pricing and promotional strategy. — IN OUR STORES Casino’s newest private label, Méchamment Bon, appeared on the stores’ snacking shelves in autumn 2017. It’s an original range of more than 40 gourmet products prepared using quality ingredients, either the day before or on the day of delivery. 23 CASINO GROUP 2017 ANNUAL REPORT Innovating to anticipate change Un Tour au Jardin, a locavore store concept being tested in Lyon. Thanks to its pioneering spirit and agility, the Casino Group has been innovating for 120 years. Today, it’s taking innovation to the next level by seeking out new partnerships, with the aim of anticipating change and even creating new needs. With start-up Rappi, Éxito is enhancing its online food offering. T o design sales offers in resp- onse to customers’ changing expectations, the Group’s ban- ners leverage numerous assets, includ- ing short decision-making processes, the ability to take risks and well-estab- lished testing procedures. With the con- tinuous transformation of its Mandarine concept, Franprix perfectly exemplifies this agility. Encouraging innovation at all levels, the Group is stepping up interaction with the start-up ecosystem, with two objec- tives: to identify the most promising solutions in order to facilitate their development and to stimulate change by anticipating new practices. For example, two hackathons were organised by the Group in Paris, to foster innovative technology projects in retail. In 2017, GPA set up a team dedicated exclusively to innovation. During the year, the new team organised the first Pão de Açúcar Pitch Day, which aims to strengthen ties with start-ups whose projects create value for customers. The creation of the GPA Lab at the head office in São Paulo also aims to foster a culture of innovation across the organisation. SEEKING NEW PARTNERSHIPS At the same time, the banners are elim- inating the procedural red tape that hampers ties between small structures and major retailers and are promoting a test-and-learn approach. This is the case at Franprix, for example, which is using several stores to test a faster pro- cess for referencing products in just a few weeks, and at Cdiscount, which has adopted a streamlined method for coop- erating with start-ups by simplifying contracts and creating special access channels to its site and back office. This year, Monoprix is partnering with start-up Epicery, which enables people living in Paris and Lyon to order products from their local merchants online. — LABORATORY Cdiscount incubates start-ups to build the supply chain of the future IN OUR STORES — A winner at the first Franprix Pitch Day in 2016, Funky Veggie offers a selection of offbeat vegan products. Franprix now sells these 100%-natural snacks in all of its stores and is helping the start-up to develop a range of in- store-prepared veggie burgers. To facilitate the emergence of innovative logistics solutions, Cdiscount plays the role of incubator with “The Warehouse”, a 500-square-metre site in Bordeaux that provides start-ups with a full-size test warehouse complete with packaging lines, racks and workstations, and a co-working space. Four start-ups have been selected for the first residency period. They work on machine learning algorithms, autonomous electric wheels, the automation of store returns and delivery run optimisation. Each start-up benefits from a personalised programme of support provided by the Cdiscount teams. The aim is to develop breakthrough innovations that together will contribute to creating the supply chain of the future. — Franprix: a holistic culture of innovation From Mandarine to Noé, Franprix is revolutionising the urban convenience store concept. The Mandarine concept changed the retail landscape in 2015 by introducing initiatives that have since become standard practice in convenience stores. They included a welcoming, wide-front store design, areas that encouraged customers to linger, such as indoor and outdoor seating, rotisseries and coffee and fresh-squeezed juice machines, as well as an improved selection of products. To stay one step ahead, Franprix has developed a holistic culture of continuous innovation that covers all of the company’s professions and processes. It is based in part on an entrepreneurial drive that showcases initiatives in-house and facilitates relations with French food-tech start- ups. The deployment in 2017 of the Mandarine Vitaminée concept, which takes the product and services offering a step further, and the launch of the Franprix Noé “lab” stores for testing organic and other solutions, attest to the success of this approach. — The four Franprix Noé stores opened in Greater Paris are designed to serve as a real-life testing ground for more responsible consumption options. 24 25 CASINO GROUP 2017 ANNUAL REPORT “I only want to shop somewhere when I can be sure how they source their produce” Valentina, Recife 26 Fruit and vegetables available on the stalls of Pão de Açúcar stores are produced in accordance with good agricultural practices that reduce the use of pesticides. 27 CASINO GROUP 2017 ANNUAL REPORT Working closely with producers Food is Casino’s core business and is more than ever central to consumer concerns. To ensure the provenance and quality of the food it sells, the Group supports local production chains and plays its part in the virtuous circle of responsible consumption. C ommitted to offering its cus- tomers quality fresh produce, t h e G ro u p e n d e a vo u rs to shorten supply chains by working with local producers. In France, the Group is forging partnerships with farmers, winemakers, breeders and fishing ports, and has signed multi-year contracts with livestock stakeholders to work with them over the long term. Its new range of milk “Ensemble avec les éleveurs”, for example, supports dairy farmers in Mont du Forez, Pyrénées Atlantiques and Val-de-Loire. The Casino group has also taken over struggling agrifood sites to secure their future. Examples include Luché Tradition Volailles, which produces Casino brand French poultry raised without antibio- tics, and cheese producer ELS, which makes Fourme de Montbrison AOP. In Brazil, GPA’s Caras do Brasil pro- gramme is designed to enable craft cooperatives to sell their goods in Pão de Açúcar stores. SUSTAINABLE PARTNERSHIPS In Colombia, Éxito is replicating a model originally set in place for its apparel offering: clothing collections have always been made by a network of 84 work- shops employing 8,000 people. Éxito is working with more than 20 organisations committed to fair trade, which help farmers and fishermen incorporate the quality and logistics constraints of the mass retail sector and ensure that they are paid a fair price. This approach is becoming increasingly widespread, thanks in large part to the partnership established with social enterprise Comproagro, which brings together more than 10,000 Colombian farmers and whose produce is accessible via a web platform. Éxito purchased 235,000 tonnes of fruit and vegetables through Compagro in 2017. — 1,750 local producers have partnered with Éxito 75% of the fruit and vegetables sold by Éxito comes from local producers 28 1000PRO Casino Proximités creates a marketplace for local producers — To offer their customers quality local produce, the Casino Proximités banners have developed the 1000PRO website, a “marketplace” intended for small local producers allowing them to offer their produce to all outlets located in their geographical area. Simple and intuitive to use, the platform adapts to producers, who can manage their offering and specify their logistical constraints on their own terms. Launched in autumn 2017, the site now lists several hundred producers, approved by the Casino Proximités quality service, giving them access to a considerable volume of potential new customers. The ultimate goal is to bring together 1,000 producers and roll the platform out to Casino’s 5,500 convenience stores. — IN OUR STORES Casino Group stocks C’est qui le patron ?! (Who’s the boss?!) products, named after an initiative that gives consumers a say in product specifications, and guarantees a fair price for producers. All Monoprix branded milk is now produced in accordance with the criteria of the label, which is displayed on the packaging. 29 CASINO GROUP 2017 ANNUAL REPORT 2017 ANNUAL REPORT — To earn the “free of pesticide residues” label, carrots are subject to phytosanitary controls by Phytocontrol, an independent laboratory where state-of-the-art analyses are used to test for the presence of nearly 500 molecules. Choosing the best produce In response to consumer concerns, the Casino private label has been supporting new production methods since 2015, selling fruit and vegetables that are free of pesticide residues under the Agriplus label. Spotlight on fresh and frozen carrots grown in France. — A blind tasting session at the sensory analysis laboratory located in Vitry-sur-Seine. Several times a week, volunteer employees taste and rate products sold under the Casino, Leader Price, Franprix and Monoprix private labels. — Fresh carrots without pesticide residues on Casino Supermarket stalls bear the Agriplus label, which guarantees innovative farming practices that are good for the environment, producers and consumers. — Grown in the Landes and Brittany, carrots are produced using alternative farming methods: selection of disease- resistant seeds, choice of farming land, use of essential oils, mechanical weeding, etc. 30 — The Casino brand promotes its products in a light-hearted comedy advertising campaign highlighting its commitment to nutrition, the environment and animal welfare. 31 CASINO GROUP 2017 ANNUAL REPORT Developing organic food and responsible labels Reassuring and environmentally friendly, organic products occupy an increasingly large space on the shelves in the Group’s stores. Casino is now going one step further by creating new brands dedicated to responsible consumption. B ecause they provide a clear and reassuring response to cus- tomer demand for food safety, specially labelled and responsible products are increasingly becoming a staple consumer requirement. The Group’s brands are supporting this change: the number of organic and eco- logical products sold in stores increased by 26% in 2017, with a particular focus on local sourcing. They are also part of a proactive policy that regularly encou- rages promotional offers, such as Pão de Açúcar’s “Organic Thursdays”. To make organic products available to all, the Group is developing its own range of private-label products sourced from organic farming in all of its store for- mats. Long committed to organic pro- duce and farming, the Casino, Monoprix and Franprix brands have led the way. Now it is the turn of Leader Price to press ahead with the rollout of its organic range. Lastly, all-organic scoop- and-weigh counters are being installed i n a g row i ng n u m ber of M on o pr i x and Franprix stores, and are also being introduced in all Casino banners and in Leader Price stores that have adopted the new Next concept. DEDICATED BANNERS As its all-organic Naturalia banner conti- nues to go from strength to strength, the Group is going a step further with the creation of new banners dedicated to responsible consumption. In Paris, four Franprix Noé stores have opened, pro- posing either an organic offering or with an added touch: specially labelled, fair trade products that are healthy and tasty, fruit and vegetables and herbs and plants sourced locally, and an unprece- dented bulk offering including yoghurt, flour, wine, spirits, household products, soap and shampoo. After testing the concept in Uruguay and Argentina, Éxito launched in Colombia its first Carulla FreshMarket store, dedi- cated to responsible consumption, with an offering backed by local and organic produce. — 26,700 eco-labelled products are marketed by the Group’s banners 2,400 private-label food products are sourced through organic farming 32 Carulla creates its FreshMarket FreshMarket is a responsible store concept that showcases quality products and gives reassurance about their provenance. Éxito has opened the first Carulla FreshMarket store in Bogotá. In a well- ordered and understated setting, the banner offers 3,000 items ranging from fresh produce, most of which is sourced locally, to organic, vegan and gluten- free products, including more than 120 items in bulk, and plants for home vegetable gardens. On the traditional counters, food is given centre stage, with a traditional bakery, a cheese counter and a meat counter, which is the exclusive provider of meat from sustainable livestock breeding in Colombia, certified by international NGO Rainforest Alliance. The teams also prepare the first pizzas to be cooked in a wood-fired oven in a supermarket. — IN OUR STORES The large amount of shelf space devoted to organic products is a key feature of “Next”, the new Leader Price store concept with more than 800 different items. Leader Price has doubled the size of its organic product range in just a year to 170 items. 33 CASINO GROUP 2017 ANNUAL REPORT Respecting animal welfare The Group was quick to make respect for animal welfare a strong focus of its commitment as a responsible retailer. It took its approach even further in 2017, drawing largely on a partnership with three expert NGOs. W hen creating the Terre et Saveurs brand nearly 20 years ago, Casino decided from the outset to incorporate animal welfare into its livestock standards in order to raise awareness and support suppliers of its private-label products. Initially motivated by the search for quality, this requirement has taken on increasing importance over the years, bolstered by societal awareness. Since 2013, Casino has been the only private label to carry out veterinary audits that take animal welfare in slaughterhouses into account. The same year, the Group was the first French retailer to stop selling cage-laid eggs under its Monoprix brand, replacing them with free range or organic eggs. In 2016, Monoprix ceased stocking eggs from caged hens across all brands. In turn, stores trading under the Franprix, Leader Price and Casino banners have made the commitment to stop selling all eggs from caged hens in their stores by 2020. In Brazil, despite a very different production chain, GPA has decided to make this commitment for its private labels by 2025. NGO EXPERTISE To take its progress strategy further, the Group has drawn on the expertise of animal rights NGOs, which play an important role in raising awareness. The signing of a partnership agreement with Fondation Droit Animal, Ethique et Sciences, CIWF France and OABA is a par t of this approach. Aimed at i d e n t i f y i n g p r i o r i t y c h a l l e n g e s , constructing progress plans, and ultimately developing a system of animal welfare labels to inform consumers in France, the agreement will give even further impetus to aligning the Group more closely with societal expectations. — — Naturalia Vegan’s four stores offer a vast selection of 2,000 products not derived from animals or their exploitation, and which are not tested on them either. — The creation of Naturalia Vegan, the first-ever all-vegan organic banner in France reflects our conviction that vegan products are an increasingly core expectation among consumers. IN OUR STORES The banners’ private labels have responded to a growing call for alternatives to meat products with the creation of specific ranges, such as Le Végétal at Monoprix and Veggie! at Casino. the retail sector to conduct audits of this type. At the same time, we have developed an antibiotic-free poultry- breeding circuit that supplies our Luché unit in the Sarthe department with chickens. What is the impact on animal welfare? Raising animals without the use of antibiotics means improving their living conditions and being even more attentive to their health. In the same way, Casino has developed a new circuit of heifers raised with their mother, who spend part of the year grazing, and whose time spent in transit is limited as much as possible by ensuring that they are slaughtered close to the farm. — 3 QUESTIONS FOR Claudine Quentel-Savoyat Quality manager for fresh processed products at Casino — How do you take into account consumers’ increasing awareness of animal welfare? Our customers are becoming more aware and responsible in their food choices. This is especially true of meat today. In response, we have introduced new specific requirements for slaughterhouses and implemented tighter controls. What do these controls involve? Audits conducted by vets ensure that operations are conducted with a minimum of suffering and with the greatest respect for the animal. Today, we are still the only player in By 2020, all of the Group’s French brands will have ceased to stock cage-laid eggs. 34 35 CASINO GROUP 2017 ANNUAL REPORT “I need to shop conveniently in-store and on the web” Anabela, Paris 36 The Group’s urban banners are playing the innovation card to introduce their customers to a new omni-channel food retailing model. 37 CASINO GROUP 2017 ANNUAL REPORT Simplifying life in stores To make shopping in stores more convenient, banners are adopting innovative solutions inspired by the best practices found on the web. They are inventing new uses and getting customers involved in their digital transformation. W ith its multi-brand and multi-format network of more than 12,200 stores, the Casino Group has the assets it needs to invent the retail experience of tomorrow. To achieve this, its banners combine physical proximity and digital innovation, with one clear objective: to offer customers a new shopping experi- ence that is both seamless and free of constraints. Special focus has been placed on the checkout process, which is often the main source of irritation. Numerous innovative measures have been undertaken in this area, largely through the development of the banners’ mobile applications. In Brazil, the 5.1 million customer mem- bers of the Pão de Açúcar Mais pro- gramme can access the Caixa Express service on the loyalty app, which means they can book a specific slot to avoid waiting at the checkout, while they take advantage of the free wifi available in all of the stores. In France, customers can use the Casino Max app to shorten their time at the checkout by paying for their purchases via their mobile phone. And in the Monop’ stores in Paris, the Monop’easy app even allows customers to scan products themselves with their smartphone and pay directly – without going through the checkout at all. INNOVATING FOR ALL CUSTOMERS New in-store services also allow custom- ers to leave their shopping cart and pay on delivery at home, while the click & col- lect option, where customers place their order online and then pick up their gro- ceries at their local store, is offered for example at Monoprix. The challenge for retailers is to invent solutions that offer urbanites a seamless process perfectly attuned with everyone’s needs. And that’s not forgetting the night owls, who are the focus of Franprix’s latest experiment: small urban stores in Paris are now open around the clock, and cus- tomers scan their purchases themselves at the checkout after 9pm. — Simplicity is the key to the innovative new services now available in Monoprix stores. — The Casino Max app combines a virtual loyalty card, personalised promotional offers and mobile payment solutions in a single click. — Franprix has introduced roving cashiers to avoid queues during peak hours. France: new payment solutions The banners are working to simplify or even do away with the checkout. Four types of solutions are available, at different stages of the customer experience. 1. ON-SHELF SCANNING — Using the Monop’easy app, customers scan the labels of the products they select on the shelf, and pay using the built-in payment function, without needing to go through the checkout. 2. PAYMENT BY SMARTPHONE — This is now possible thanks to the Casino Max app: when paying for purchases at the checkout, customers generate a barcode on their phone, which is scanned by the person at the checkout. Payment is made directly via the app. 3. ROVING CASHIERS IN STORES — A t p e a k t i m e s , F r a n p r i x mobilises its roving cashiers: employees equipped with a “ring” scanner and a payment terminal provide customers with the option to pay without queuing. 4. HOME PAYMENT — Monoprix and Franprix urban retail banners allow customers to leave their shopping cart in the store, and to pay when their groceries are delivered. — 38 39 CASINO GROUP — Cdiscount’s storage capacity increased by 70% in 2017, 2017 ANNUAL REPORT with warehouse space now totalling 500,000 square metres, split between three key regions in France, namely Bordeaux, Paris and Lyon. Tirelessly innovating with Cdiscount A leader in e-commerce in France, Cdiscount is stepping up its technological and commercial transformation to provide its customers with optimal quality of service. The result is exponential growth in the product line-up, a more seamless shopping experience and faster delivery. A t Cdiscount, 2017 was shaped by major changes aimed at improving customer satis- faction. The first big change was the expansion of the offering across all product categories. The number of items available has increased fourfold, extending into the worlds of furniture, decoration, toys and leisure, and the number of products available on the marketplace has increased by 80%. This rapid growth in itself represents a new challenge, that of offering custom- e rs t h e m o s t s e a m l e s s s h o p p i n g experience and the most appropriate products among the 37 million offers on the website. In 2017, the Cdiscount teams completely overhauled the mobile experience, which accounts for 60% of traffic. Emphasis was also placed on data science and algorithms enabling the platform to recommend the most suitable products throughout the cus- tomer’s browsing experience. The result is ergonomic navigation, synchronised between PC and smartphone for seam- less shopping. THE OMNI-CHANNEL EXPERIENCE Creating a new shopping experience for customers is an aim shared by the Cdiscount showrooms now open in several Géant Casino hypermarkets. The most popular items of furniture and equipment are staged in home-like settings, with a digital system providing access to millions of items on the website, with specialised salespeople available to offer advice. The latest feature of Cdiscount’s trans- formation is the shortening of customer delivery times. Extended warehouse surface areas and partnerships with start-ups have made it possible to enhance storage capacity, speed of execution and the range of services. This has resulted in a threefold increase in the number of items eligible for the unlimited express delivery offered to Cdiscount subscribers and the launch of exclusive innovative delivery services on the same day, on Sundays, or the delivery of large parcels at arranged times, geolocated in real time. — 946 million visits to the Cdiscount website in 2017, an increase of 12% the Cdiscount app is rated 4.5/5 on the App Store 37 million products available — 17% of sales on the marketplace are managed internally from A to Z, thanks to the “fulfilment” service offered to vendors, which gives them access to Cdiscount’s marketing and logistics expertise. — Shelf-climbing skypod robots developed by start-up Exotec make it possible to stock warehouses more compactly, resulting in a fivefold increase in productivity and improving the teams’ working conditions. — In keeping with its desire to broaden access to a maximum of everyday services, in 2017 the site launched Cdiscount Énergie, the cheapest electricity offer on the market, as well as Coup de Pouce, an instant online credit approval solution. 40 41 CASINO GROUP 83 drive-through Casino Supermarkets were opened in 2017 +25% growth in food sales on monoprix.fr in 2017 6 minutes will suffice from 2020 to prepare an order containing dozens of articles thanks to the Ocado solution 42 Becoming a leading food e-tailer The exclusive partnership with UK food e-commerce specialist Ocado will help the Group enhance the omni-channel experience offered by its banners. It will also give it a decisive lead by combining digitisation and profitability. S ince 2000 and the acquisition of Cdiscount, Casino’s aggres- sive e-commerce strategy has consistently paid off. By leveraging syn- ergies between bricks-and-mortar and digital distribution channels, Cdiscount has become the French leader in non- food e-tailing. At the same time, the Group’s banners have been quick to seize the potential of online food retail- ing, and particularly the importance of last-mile logistics, mobilising their inno- vation capabilities to develop ideas tailored to their specific customer base. Franprix took the lead by launching home delivery within 40 minutes, via its dedicated app. In Colombia, Éxito called on start-up Rappi to provide a delivery offering in under 35 minutes in six major cities. ECONOMIC PERFORMANCE Monoprix stands out as an omni-chan- nel leader in urban retailing. The com- mercial partnership signed with Amazon makes Monoprix France’s first major retailer to offer its food products to Amazon Prime subscribers, with delivery within two hours. The new service will be available before the end of 2018. In early 2020, the banner will also be the first in the Group to benefit from the exclusive partnership with Ocado, a pure player and recognised expert in food e-commerce, which boasts a 17-year track record on the UK market. Combining technological and economic performance, Ocado’s solution is based on an automated order preparation tool and real-time analysis of customer data. Specifically, the Group will operate a warehouse in Greater Paris, which Ocado will equip with its storage cells and han- dling robots: it will only take six minutes to prepare orders containing dozens of products placed online. The service will give a real boost to the transformation initiated by the banners to introduce their customers to a new model in food retailing. — 2017 ANNUAL REPORT — In the warehouse, the Ocado solution uses robots to select the products kept in the storage cells, and route them to the teams preparing the orders. — With 292 drive-through outlets in its integrated stores and the rollout of home delivery services, the Group offers its customers an efficient online shopping solution on casinodrive.fr. 3 QUESTIONS FOR Julie Badiche Executive Director of the food e-commerce solution — What are the major challenges in food e-commerce today? Today, while it is unanimously seen as a very promising new market, food e-commerce is far from meeting its full potential. All players are facing the same difficulties: you have to have a large enough offering and a reliable and efficient delivery service. And above all, you need a profitable business model. What makes the Group’s solution more efficient? With the expertise of Ocado, which is the undisputed leader in this field, the Group will be able to offer its Plus customers no fewer than 50,000 items, with optimal quality of service, and home delivery the next morning. The range of articles available and the level of performance are both unprecedented in France. How can the Group keep a step ahead? Our internal teams will operate the new food e-commerce solution for Monoprix at first. We will be able to adjust the Ocado solution continuously to align it with the specific features of our markets, the new expectations of our customers and the DNA of our banners. — ONLINE Plus Plus The Franprix app allows customers in Greater Paris and in Lyon to access a wide selection of 3,500 food items ranging from groceries and fruit and vegetables to cleaning products and health and beauty articles. And you can get a delivery within 30 to 40 minutes. 43 CASINO GROUP 2017 ANNUAL REPORT 6 monoprix.fr T H A T E V E N I N G OR THE NEXT DAY 3 One step ahead for shopping 3.0 exito.com A pioneer in food e-commerce, the Group has built a powerful logistics system around its vast network of bricks-and-mortar stores, and is innovating to further reduce delivery times. In this way, it is playing a leadership role in the new, customer-focused food retailing landscape. A M E - DAY DELIVE 2 R Y HOME DELIVERY 1 S 5 CASINO DRIVE CLICK & COLLECT SHOP&GO 4 paodeacucar.com extra.com.br 1 2 3 Online grocery shopping for all Ever faster express delivery Big shopping for next-day delivery One of the year’s major innovations, the new mobile apps launched by the banners in 2017 were synonymous with new opportunities for customers, who can now order their shopping online via their smartphone or PC in a majority of stores and enjoy personalised services. The density of the store network in big cities allows customers to pick up their shopping within one or two hours – or be delivered in less than 40 minutes through the solutions implemented with partners specialised in last-mile logistics. Around major cities, the banners are putting together a comprehensive logistics system dedicated to food e-commerce to make vast product line-ups available to customers, complete with home delivery the same evening or the next day. 4 5 6 From drive-through to shop & go Cdiscount express in Greater Paris Ocado’s state-of- the-art technology The banners are using new services to blur the line between bricks-and-mortar and online retailing: select the items yourself then simply leave your shopping cart to be delivered within an hour, order online and pick up your shopping in store, on foot or by car. It’s all up to the customer. Thanks to the synergies created with Géant Casino hypermarkets and Casino Supermarkets, subscribers to Cdiscount’s unlimited delivery option in Greater Paris benefit from the free Cdiscount express offer: a choice of more than 10,000 items and home delivery within 90 minutes or at a pre-arranged time. Currently under construction in Greater Paris, the future warehouse to be operated by the Group with state-of-the- art technology by e-commerce specialist Ocado will have the capacity to prepare orders in 6 minutes in 2020. Monoprix.fr customers will be the first to benefit. 44 45 CASINO GROUP 2017 ANNUAL REPORT “I like to shop where there is a neighbourhood feel” Christine, Orléans 46 The friendly welcome, traditional values and know-how of food professionals are back on centre stage in our stores. 47 CASINO GROUP 2017 ANNUAL REPORT Forging ties with our customers Retailing is above all about human contact. Day after day, our banners and their teams work to forge bonds with their customers, through simple ideas, services rendered and shared smiles. home deliveries to pick up used batteries and light bulbs, and to collect food products to donate to charities. Franprix lends trolley bags and umbrellas, and gives away fresh herbs to customers in its Noé stores. The banner is even testing a service known as “Franprix garde vos clés” (Franprix looks after your keys), in partnership with Oh my Keys, a website developed by La Poste, in Lyon. — W ith a strong presence in French rural communities, Vival stores play a key role in creating social bonds, going well beyond their role as local grocers. They have become a forum of exchange for customers, who can pick up a newspaper, some bread and all the invaluable services they need on a daily basis. New services were added in 2017, ranging from photo developing, money transfers with Western Union, Crédit Agricole’s Points Verts services and La Poste collection points to the VivalLivres exchange libraries. PROVIDING SERVICES Relationships of this type are also becoming more important in urban settings, where consumers are looking for connections and human contact. The banners have taken a wide range of initiatives to help people on a daily basis, often for free. Examples include Pão de Açúcar in Brazil, which has opened spaces where customers can leave their pets while they shop. Monoprix uses Le Petit Casino gets back to basics A tribute to the banner’s historic beginnings and a quest to regain the feel of a shopping street. Behind a traditional bottle-green façade with red and white blinds, the new stores of Casino’s well-established convenience banner have gone back to the basics to recreate the spirit of a shopping street. Already rolled out in more than a hundred stores, the Le Petit Casino concept focuses on re-establishing a human connection with customers by giving pride of place to the talent and personality of shopkeepers. The counter is the focal point of the store, like that of a bistro: customers can settle in at the bar to drink a coffee, a glass of freshly squeezed orange juice or a beer. They can also have a meal. The return of service counters, with cheese and meat cut directly for customers, not to mention roast chickens, also help to strengthen links, as do practical everyday services such as dry-cleaning and free phone charging. — IN OUR STORES Never short of inspiration, Monoprix uses its Facebook fans – its page boasts more than a million – to choose the best puns to use on its product packaging. and sparkling tone. It’s one of our trademarks. For Monoprix, humour has to be cool, light and never controversial. Its jokes are the sort you could share with your friends. Its aim is simply to bring a positive note to everyday life, to put a smile on our customers’ faces. And apart from the packaging? It’s a tone that is used throughout the customer journey: at points of sale, on bags and on all advertising. But it also features on social media, where we extend the relationship by inviting ourselves into people’s daily lives – with our monojis for instance! This light-heartedness is what nurtures the contact we have with our customers. — 3 QUESTIONS FOR Florence Chaffiotte Marketing Manager at Monoprix — Why does Monoprix use humour with its customers? Monoprix is a banner rooted in the everyday lives of city dwellers. We wanted to make everyday life less mundane by adding a touch of light- relief, a bit of humour. It’s a way of maintaining a connection and of relating to our customers. What kind of humour does Monoprix play on? At Monoprix, we’ve always been fans of word play, with a happy, upbeat Modelled on a beehive, the VivalBooks box is an exchange library for people wishing to share their reads. 48 49 CASINO GROUP 2017 ANNUAL REPORT 2017 ANNUAL REPORT Transmitting our know-how Doing our job well means giving pride of place to the people who work with our products. A guided tour in pictures of our internal training schools, where traditional know-how is passed on. — The Casino supermarket training departments provide continuous training for teams. The aim is to sharpen the expertise of food professionals and cultivate a taste for the product, from young recruits to managers. — In Colombia, Carulla stores have a specialised internal school to train people working at its new traditional bakery counters. — Adjoining a shop, the Vival Business Training School in Saint-Étienne provides the banner’s franchisees and employees with practical and theoretical training. 50 — Know-how and expertise are the key focus of the Franprix Académie Mandarine training courses, which were given to more than 1,600 employees in 2017. — In Paris, Monoprix is setting up a laboratory to provide quality training for its future butchers, in partnership with the European Centre for Culinary Professions. 51 CASINO GROUP 2017 ANNUAL REPORT Caring about people Safeguarding the well-being of our customers means looking after the well-being of our teams. And vice versa. That is why the Group seeks to create the conditions needed to welcome, encourage and listen to employees. 7,400 people are employed on work-study programmes in the Group’s various entities 39% of the Group’s employees are under 30 4,500 managers have been trained in caring management practices W herever it operates, the G ro u p h a s m a d e we l l - being at work a priority. Efforts start with the employee’s very first steps in the company. The company has an active policy geared towards facilitating the integration of young people. It has made a strong commit- ment to combined work-study pro- grammes as a path to professional excellence. Now that GPA in Brazil and Libertad in Argentina have set up dedi- cated support programmes, the Group’s various entities employ more than 7,400 apprentices and work-study trainees. In France, Casino holds an annual con- test to promote talent and the spirit of initiative among its trainees. The prizes are awarded on Apprenticeship Day. For the first time this year, a Benevolent Tutor’s Trophy was awarded, which ties in with the caring management awareness initiative conducted since 2014. FREEDOM OF ACTION AND OPTIMISM The Group contributes to the well-being of its employees by encouraging a caring approach to managerial responsibility. More than 4,500 managers, including senior management teams, have already been trained in this unprecedented approach designed to foster meaning and encourage freedom of action and optimism. Eight caring management levers are now on the agenda of management training and new employee integration courses. At the same time, a network of one thousand “work-place well-being experts” has been established in France: they form a genuine human chain, listening to employees who may be in difficulty and directing them to people who can help. — Caring Management Awards An initiative designed to advocate and spread best management practices — Held for the first time in 2017, the Caring Management Awards showcase initiatives designed and implemented by managers to ensure the well-being and motivation of employees. The aim is to reinforce appropriation of the caring management levers and to help share good practices. The Group’s Executive Committee selected 16 prize-winners from among the 70 short-listed projects. The winning ideas included warm-up meetings implemented by a team at the head office to encourage sharing and initiative: they consist in regular Monday meet-ups in an informal atmosphere to take stock of challenges, and to share out tasks and deadlines. Another winning project, this time in a Franprix store, promotes the idea of emulation: each of the members of the team in turn leads a half-day promotional event. Employees select the most successful project, which then receives an award. — 52 53 CASINO GROUP 2017 ANNUAL REPORT “For me, shopping is also about making a social statement” Diego, Carthagena 54 The new Carulla FreshMarket stores educate customers about responsible consumer behaviour. 55 CASINO GROUP 2017 ANNUAL REPORT Being a responsible employer For over 25 years, Casino has been actively committed to preventing discrimination, promoting diversity and fostering a sense of community. Today, the Group is recognised as an assertive advocate of gender equality. +4.6% increase in the number of employees with disabilities at the Group between 2016 and 2017 32% of executive committee members at Éxito are women 354 days of paid leave given by employees to caregivers, with the Group contributing an additional 200 days B ecause it believes that diversity contributes to its business performance, the Casino Group has been active since 1993 in combating all forms of discrimination – against race, disability, gender, age, sexual orientation, religion or appearance. Casino leads a proactive policy designed to encourage the hiring of applicants from a wide range of backgrounds, foster equal opportunity at every level and promote social cohesion. Its policy also aims to heighten staff awareness to fight stereotypes, as they are the underlying cause of discrimination. To this end, guides are disseminated to help people better understand such topics as sexual orientation, everyday sexism and disability in the workplace. The results show that the Group has delivered on its commitments. The number of employees with disabilities has increased by nearly 5%; 39% of em p l oyees a re u n d er 3 0 ; a n d t h e percentage of women managers has risen at all entities from 35% in 2015 to 38% in 2017. Casino was even the first retailer to obtain France’s Diversity Label, and in 2013 the Workplace Equality Label. ADVANCING GENDER EQUALITY H a v i n g e n d o r s e d t h e Wo m e n ’s Empowerment Principles backed by UN Women, and the Diversity Manifesto of the Casino women’s network “C’ avec elles”, the Group furthers gender equality by implementing concrete measures, including training on sexism, initiatives for equal pay and support in career management. Additionally, all of its French subsidiaries took part in the Orange Days campaign in 2017 to end violence against women. This action was praised by the French Minister of State for Gender Equality, who awarded Franprix the title of “Orange Day Champion”. — — A culture of social innovation is spreading at GPA. As part of Diversity Week, an event organised for the first time in 2017, GPA signed the Women’s Empowerment Principles, an initiative of UN Women, and the 10 business commitments for the promotion of LGBT rights. SOCIAL RESPONSIBILITY Employees working for the common good — As a natural extension of the skills volunteering programme launched in 2016 by the Casino Corporate Foundation, the Social Responsibility Awards were organised for the first time this year in partnership with the Institut de l’Engagement to recognise socially responsible initiatives taken by employees. The Group also supports the “Help the caregivers” programme, a system which lets employees donate paid leave to other employees who care for ill or dependent loved ones. In 2017, 354 days of paid leave were given by employees, and the Group contributed an additional 200 days. Determined to encourage all facets of social responsibility, the Group is also strengthening its support for its employees who are military reservists, with new measures to boost volunteering. — 3 QUESTIONS FOR Marie Even Corporate Secretary of Cdiscount — Why does Cdiscount promote gender equality? We are engaged, as is the entire Group, in fighting all forms of discrimination. Cdiscount is a leader in the digital industry, an ecosystem that tends to be dominated by men, and with huge potential for a bright economic future. We have a responsibility to make sure that women play a role and fully benefit from the the industry’s rapid development. It’s an issue of equality but also of company performance. What major advances have been made this year? In 2017, 42% of managers hired on permanent contracts were women, and almost 60% of employees promoted to management positions were women. These figures reflect the proactive policy led by the Human Resources Department and the commitment of our employees. And where do you go from here? Cdiscount is continuing to make progress on parental rights for both women and men, and has pledged to achieve equal representation on its management committee by 2020. — 56 57 CASINO GROUP CASINO GROUP 2017 ANNUAL REPORT 2017 ANNUAL REPORT Reducing our footprint In response to the challenge of climate change, the Group has developed an environmental programme that aims to reduce its consumption of natural resources, combat pollution and raw materials waste, and protect biodiversity and natural habitats. store roofs in Goiânia, the largest urban solar power farm in Brazil, covers the energy consumption needs of its lighting and air conditioning systems. Reducing its environmental footprint also involves recovering waste generated by stores and collecting recyclables from customers, while supporting local recycling networks, and combating food waste. The banners team up with organisations working to support the solidarity economy, such as Phénix for Franprix and Eqosphère for Leader Price, which collect products with short expiry dates to donate them to local charity o r g a n i s a t i o n s . B a n n e r s a r e a l s o improving their processes to limit b r e a ka g e a n d r e g u l a r l y e d u c a te employees and customers about waste. — T h e G ro u p’s e nv i ro n m e n ta l commitments are firmly rooted in its practices: its banners have fully integrated a low-carbon strategy by reducing greenhouse gas emissions related to their operations. For example, to limit refrigerant leakage, they are taking steps to improve the air- tightness of existing equipment and install new equipment that uses natural refrigerants. At the same time, the Group is continuing to upgrade its transport fleet, shifting towards vehicles powered by more eco-friendly fuel, e.g., liquefied natural gas (LNG) and biome- thane. Alternative methods of transport are also encouraged, such as Franprix’s use of river transport. ENERGY EFFICIENCY One of the Group’s priorities is to reduce electricity consumption at its stores. Measures include installing doors on refrigeration units, using low-energy lighting and air conditioning systems, and building solar power systems. The new photovoltaic generator installed across 8,000 square metres of Assaí +8% renewable electricity produced -2% electricity consumption in stores in 2017 58 58 — Since 2007, the Casino Group has drawn on the expertise of its subsidiary GreenYellow to install 65 solar power generation units on roofs and solar canopies at car parks, and to operate 15 self-consumption systems. Combating deforestation The Group’s Latin American banners implement numerous initiatives to slow deforestation and conserve biodiversity. Substantial progress was made in 2017. 1. BEEF SOURCING POLICY — To combat deforestation in the Amazon due to cattle ranching, GPA engages in sustainable beef sourcing, a policy developed in partnership with the NGO The Forest Trust. A c o m p r e h e n s i ve a u d i t o f i t s b e e f suppliers was conducted. 2. C E R T I F I E D S U S TA I N A B L E FA R M I N G — C a r u l l a s to r e s became the exclusive distributors of meat from the first livestock farm in Colombia to be certified as sustainable. The Rainforest Alliance Certified seal is awarded to promote the transformation of land-use practices that protect biodiversity and local populations. 3. CERRADO MANIFESTO — The Casino Group signed a manifesto to protect Brazil’s Cerrado region, one of the world’s richest ecosystems with over 160,000 plant and animal species. — — In signing the Cerrado Manifesto, the Group has pledged to protect the native vegetation of this threatened region of Brazil. IN OUR STORES After making the switch with eggs, baguettes and milk, Monoprix continues to substitute conventional products with sustainable alternatives without raising the price. Now its stores sell only one type of banana, an organic variety with Max Havelaar fair trade certification. 59 59 CASINO GROUP +29% increase in food donations by Group stores and warehouses, representing a total of 41 million meals 10,000 GPA staff volunteers took part in the Dia de Solidariedade in 2017 60 Helping others Helping others In touch with customers and their needs, the banners contribute to the development of regions and the well-being of their communities by helping the most vulnerable populations. The Group’s four foundations offer a framework for these initiatives, which primarily focus on supporting children. F ood is central to Casino Group’s corporate purpose. A growing number of its banners organise daily food drives to collect perishables for donation to local charities. They par- ticipate on a broad scale in major nationwide campaigns with customers to s u p p or t fo o d b a n ks i n Fra n c e, Colombia, Argentina, and in Brazil, where paodeacucar.com customers can also donate food baskets to the non-profit organisation Amigos do Bem. Banners also create solidarity pro- grammes to support local organisations, namely the Round Up campaign, a micro-donation system rolled out in France and Brazil. In 2017, employees of participating GPA stores could choose which organisations would receive the €50,000 in donations raised. And in Colombia, 611,000 Christmas dinners were served to children as part of an Éxito Foundation initiative. HELPING YOUNG PEOPLE As a major employer in Colombia, Brazil and France, the Group has made a commitment to help underprivileged youths to enter the labour market. In Brazil, Instituto GPA is co-financing the Núcleo Avançado em Tecnologia de Alimentos (NATA) centre, which provides training in baked and dairy goods, and supports the merit-based scholarship programme set up by the Getulio Vargas Foundation. In France, the Group has forged many partnerships to help young people to join the workforce, including with: Sport dans la Ville; Le Réseau, a network that offers career guidance for secondary school students; and Nos Quartiers ont d u Ta l e n t , w h i c h s p o n s o rs yo u n g entrepreneurs. Casino also promotes careers in civic engagement with the Institut de l’Engagement. Lastly, the Group partnered with the City of Paris in the “1000 parrains pour 1000 emplois” mentorship programme, mobilising 60 of its employees to volunteer. — — The Casino Corporate Foundation works to prevent the cultural exclusion of children by supporting education through theatre with 2017 ANNUAL REPORT its “Artistes à l’école” programme, which has provided 2,000 children with backing for a quality two-year artistic education curriculum. — Instituto GPA actively promotes education for disadvantaged children. In 15 years, on top of its support in professional training, it has made it possible for 15,500 young people to participate in the “Musica & Orquestra” music training programme and perform internationally. — The Monoprix Foundation supports projects that foster a new spirit of urban solidarity, encouraging access to food and staples and fighting solitude in cities. The “Intergénéreux” programme of Unis Cité is dedicated to protecting the elderly from social isolation. — The Éxito Foundation fights child malnutrition through the “Gen Cero” programme, which coordinates public and private initiatives to eliminate child malnutrition by 2030. In 2017, more than 50,000 Colombian children received assistance. 61 CASINO GROUP 2017 ANNUAL REPORT Distinctive banners that are close to their customers —Listening to our customers, a culture that enables banners in all formats to meet market expectations. —Continuously enhancing the quality of our food products, a commitment shared by the value banners. —Making the shift from “place to shop” to “hang-out spot”, a key objective for the Group’s qualitative banners. 62 63 CASINO GROUP 2017 ANNUAL REPORT France DISCOUNT BANNERS CONVENIENCE BANNERS QUALITATIVE BANNERS E-COMMERCE RESTAURANTS France An extensive network of renowned, long-standing banners that are innovative and complementary, designed to support changing consumer habits every day. 9,221 75,449 stores employees Sales by type of banner 40% 38% 22% qualitative discount convenience Indian Ocean DISCOUNT BANNERS CONVENIENCE BANNERS E-COMMERCE 64 CASINO GROUP FRANCE “Delight in this day!” Supermarkets in both rural areas and large urban areas FRANCE Convenience banner in large cities 2017 ANNUAL REPORT 10,271 EMPLOYEES 433 OUTLETS AVERAGE RETAIL SPACE OF 1,700 SQUARE METRES 3,537 EMPLOYEES 893 OUTLETS AVERAGE RETAIL SPACE OF 400 SQUARE METRES Retail offering In 2017 Retail offering In 2017 Casino Supermarchés is a leading food retailer, with an offering that covers every need, from the basic day-to-day to the exceptional. The banner emphasises the quality of its fresh produce, the know-how of its traditional food services professionals and friendliness towards its customers in stores that are completely reshaping the shopping experience. Roll-out of the store concept showcasing the revitalised offering. Focus on market areas, continued installation of traditional food stands and redeployment of bread-making services with an innovative “home-made bread” concept. Development of food service expertise by training teams in department-schools at top stores. Assortment of fresh produce and private-label products totally overhauled and organic product range expanded. Operating in Greater Paris and in large cities in the Rhône Valley and Mediterranean basin, Franprix is the Group's main convenience banner for urban areas. A point of sale now evolving into a lifestyle hub with its new store concept, Franprix is part of daily life for urban dwellers. The banner features a full range of food products that meet the everyday expectations of people living in the city who want quality, innovation, authenticity and taste (bulk products, fresh- squeezed fruit juice, hot snacks, etc.), and neighbourhood services (bag and umbrella lending, notice board, etc.). Launch of the Franprix app, which combines orders plus delivery in less than 40 minutes, a GPS locator, virtual loyalty card and personalised promotions. The first Franprix Noé stores opened in Paris, a concept lab to test sustainable consumption. Additional partnerships with FoodTech and quality commitment programme for the Franprix brand. Innovation in services: payment with the Lydia app, “Leave without paying” service, postal services, and more. Six awards won, including the award from LSA magazine for the year’s top cross-channel company, and the gold award for the best connected retailer at the “La Nuit du Commerce Connecté” event. 66 67 CASINO GROUP 2017 ANNUAL REPORT “Low prices are huge at Géant!” “The pleasure is all yours” FRANCE Hypermarkets in urban outskirts FRANCE Discount supermarkets in city centres and suburban areas 15,823 EMPLOYEES 122 OUTLETS AVERAGE RETAIL SPACE OF 7,000 SQUARE METRES 4,000 EMPLOYEES 777 OUTLETS AVERAGE RETAIL SPACE OF 800 SQUARE METRES Retail offering In 2017 Retail offering In 2017 Price co-leader in France, Géant Casino continues to enhance its image with a differentiating concept while maintaining its competitive advantage. The banner has realigned its food offering with a generous selection of fresh produce and a high-quality range of private-label products. Géant Casino is modernising its non-food offering, which focuses on “pleasure” apparel and housewares purchases, drawing on the expertise of Cdiscount. Strong sales performance, especially with promotional campaigns. Increase in the share of space allotted to market areas, innovation, organic products and private labels within the food offering. Launch of cross-department capsule collections within the apparel and houseware selections. Development of an omni-channel strategy in Cdiscount showrooms for electronics, home appliances and furniture. Discount banner Leader Price stands out for its balanced selection of more than 4,000 products based on a single criterion: a constant quest for quality at the right price. For this reason, the banner chooses its suppliers from among the leading players in the food industry and requires them to comply with strict specifications. It is also expanding its private-label organic range. The banner offers a wide selection of fresh and seasonal products, delivered daily, with priority given to products sourced in France. Partnership with a new ambassador, the celebrity chef Norbert Tarayre, who lends his expertise and helps develop the range. Implementation of the new Leader Price store concept, Next, which aims to make purchasing a pleasant experience: showcasing of fresh produce, organic products, rotisserie grill, deli section, seafood counter, and wine and spirits cellar, all in a totally redesigned space. Launch of the cosmetics private label Sooa, represented by TV host Louise Ekland: the range of 165 products for the face and body, combining quality and low prices, was an immediate hit in stores. 68 69 CASINO GROUP 2017 ANNUAL REPORT FRANCE Upscale city-centre banner 18,500 EMPLOYEES 316 OUTLETS Retail offering In 2017 An omni-channel lifestyle leader and a pioneer in sustainable consumption, Monoprix offers its urban customers a different experience with its unique assortments and private-label food, beauty, fashion and houseware products. For the past 85 years, the banner has built a special relationship with shoppers, and is now stepping up its digital transformation. Launch of services designed to make life easier for city dwellers: the Shop & Go ("lâcher de caddie" on-foot delivery) service, the Monop’easy app to pay without going through check-out, connected shopping list with the Google Assistant. Investment in Epicery, which delivers products from neighbourhood retailers within the hour. 25% growth in food sales on Monoprix.fr, partnership with Ocado to integrate its grocery e-commerce solution by 2020, plan to acquire the online shoe retailer Sarenza announced in early 2018 and commercial partnership with Amazon Prime Now. “Feel free to be natural” FRANCE Convenience stores featuring organic and natural products Retail offering In 2017 Naturalia is one of France's first organic food chains. Its offering, which builds pleasure into the organic experience, covers more than 10,000 products, including fresh produce, dry goods, natural cosmetics and dietary supplements, with specialised brands and a private-label product range. 24 stores opened. New brand positioning exemplified in the tagline “Soyez libre d'être nature” (“Feel free to be natural”): cheerful, contemporary and innovative organic offering. Launch of the new naturalia.fr website and customer services: click & collect, eco-friendly home delivery. Creation of the Naturalia Vegan concept with the first four stores opened, offering 2,500 100% plant-based, everyday organic products. FRANCE Urban convenience stores Retail offering In 2017 A pioneer of the French-style convenience concept, Monop’ offers its urban customers – six days a week, from 9:00 a.m. to midnight – a selection of fresh produce, dry goods, and hygiene and beauty products. Monop’ features several types of concept stores: Monop’daily (fresh and ready-to-eat products), La Cantine (healthy snacks), Monop’beauty (beauty products) and Monop’station in train stations. Ongoing expansion with nine Monop’ stores opened. Third La Cantine outlet opened in Paris. Renewed offering: juice machines, salad bars, rotisserie grills, bulk organic products, etc. Launch of the Monop’easy app, used to scan and pay for items directly in the aisle with a smartphone. 1,200 EMPLOYEES 168 OUTLETS 1,440 EMPLOYEES 199 OUTLETS 70 71 CASINO GROUP 2017 ANNUAL REPORT FRANCE City-centre convenience stores 928 OUTLETS Convenience supermarkets and stores 860 OUTLETS FRANCE Retail offering In 2017 Retail offering In 2017 The new Petit Casino concept fits right into the city centre, the clear intention being to recreate the vibrancy of the shopping street. With a modernised neighbourhood shop atmosphere, its stores are welcoming, open and friendly. With its wide range of services, Petit Casino caters to lifestyle seekers, making it the perfect setting for a personalised relationship between shopkeeper and customer. Launch of the Petit Casino concept, a tribute to the banner’s historical beginnings, and deployment across 128 stores. Training for managers of stores that have adopted the new concept. Installation of service areas, a rotisserie grill, fresh juice, and a counter with a coffee machine and beer tap. Development of the assortment: more fresh produce, more bulk and local products. RETAIL SPACE OF 80 TO 500 SQUARE METRES An internationally respected convenience banner, Spar is the leading food retailer in tourist and fast-growing economic areas in France. Its local and regional offering meets customers’ expectations of quality and freshness with meat, seafood and cheese counters, and more. Major tour of ski resorts (February) and sea resorts (July) with events held at the foot of the slopes and along beaches. Launch of a new loyalty programme, with a jackpot promotional campaign featuring Casino products and traditional foods. International Spar convention in Prague attended by 600 franchises. RETAIL SPACE OF 200 TO 1,000 SQUARE METRES FRANCE Mountain region convenience stores 112 OUTLETS FRANCE Small, town-centre and rural stores Retail offering In 2017 Retail offering In 2017 Exclusively located in mountain regions, the banner embraces the values and symbols of this lifestyle: nature, freshness, vitality, authenticity and performance. Sherpa is geared towards the winter sports market, and as such tends to be the reference at ski resorts, with a clear concept, unique services and an offering designed so that customers can enjoy stress-free holidays. Ongoing expansion with four Sherpa stores opened in the Alps and Pyrenees regions. Development of online sales on the sherpa.net website. Campaign to promote awareness about food waste, with significant price discounts on products with short expiry dates. RETAIL SPACE OF 90 TO 400 SQUARE METRES Vival provides a citizen-driven convenience store offering geared towards small and medium-sized rural towns and suburban neighbourhoods. This multi-service outlet can meet all its customers’ needs and serves as a meeting and gathering point to strengthen social ties. Service offering expanded: photo printing terminal, Crédit Agricole’s Points Verts ATM services, postal services, Western Union money transfers. Launch of the Vival loyalty card. Roll-out of VivalLivres libraries. Vival in-store school opened in Saint-Étienne. Launch of 1000PRO, an online marketplace that puts local producers in contact with retailers. 1,660 OUTLETS RETAIL SPACE OF 60 TO 150 SQUARE METRES 72 73 CASINO GROUP 2017 ANNUAL REPORT “Don’t skimp on your pleasure” FRANCE Multi-specialist e-commerce website 1,800 EMPLOYEES MORE THAN 30 MILLION PRODUCTS AVAILABLE 18 MILLION UNIQUE VISITORS PER MONTH Retail offering In 2017 Cdiscount is a major success story in French online retail. This multi-specialist website provides widespread access to the best products and services. Since the sale of its first DVD in 1998, Cdiscount has continued to grow and adapt to market changes, always establishing a position in unexpected sectors: high tech, appliances, wine, home décor and even electricity. Now the French leader in e-commerce, Cdiscount has preserved its agile business model while building closer relationships with its customers. As such, it has now consolidated its positioning as an online retail pleasure destination that constantly reinvents the future of e-commerce. Complete overhaul of websites to improve the shopping experience and redesign of the mobile app, now with one of the highest ratings on the market. New marketing identity and new tagline, “N’économisez pas votre plaisir” (“Don’t skimp on your pleasure”). 12% increase in the number of visits, with a growing share for mobile (60%). Accelerated growth on social media: Cdiscount is a top- ranking e-commerce site in terms of social media activity. Number of products eligible for free express delivery tripled under the “Cdiscount à volonté” programme. New delivery services: implementation of same-day delivery in the Paris, Lyon and Lille regions; Sunday delivery operational in 15 major French cities; launch of real-time, geolocalised delivery for large packages (>30 kg). Multi-channel strategy underpinned by the creation of Cdiscount showrooms at four Géant Casino hypermarkets. Launch of two new innovative services: “Coup de Pouce” instant credit and the most affordable range of electricity services on the market, Cdiscount Energie, in partnership with GreenYellow. 74 75 CASINO GROUP 2017 ANNUAL REPORT “Tradition revisited! ” “Natural cooking” FRANCE Restaurant in suburban shopping areas Retail offering In 2017 The banner revisits traditional, "home-made" style cooking, featuring all-you-can-eat starter and dessert buffets, and a large selection of hot dishes. This healthy palette presents a variety of options that change with the seasons and can be enjoyed at a low cost. Roll-out of a concept focused on providing a wide range, letting the products themselves take centre stage, and making the experience more fun. Pricing policy readjusted with a new base price and broader price range. 100 RESTAURANTS RETAIL SPACE OF 450 TO 650 SQUARE METRES FRANCE Catering services Retail offering Renowned for the quality of its catering services, R2C is active in the business, healthcare, prison and education industries. The caterer has made a name for itself by constantly innovating, providing a balanced, broad offering of fresh, organic and local products, and meeting high social and environmental standards. In 2017 Test of a lunch bag service via click & collect at about ten outlets. Stand-out partnerships in the sport and healthcare, nutrition and service industries, with planning underway to develop farmers’ baskets and corporate gardens. Major contract signed with Engie at La Défense, where the R2C team deploys all of its expertise across 12 exciting stands, and supports Engie in its strategic and cultural transformation programme. 1,300 EMPLOYEES 180 OUTLETS “Delicious cooking since 1967” “Modern caterer by tradition” FRANCE Sandwich and snack shops in city centres and shopping areas FRANCE Event catering Retail offering In 2017 Retail offering In 2017 For a quick break or relaxed meal, on-the-go or seated, the Cœur de Blé concept is suited to today's new eating habits. Focusing on product balance and taste, Cœur de Blé provides original, delicious recipes made from carefully selected ingredients. More exciting offering with monthly campaigns and the roll-out of new seasonal specialities. Test of a Cœur de Blé concept geared towards healthier eating habits, with a range featuring more natural, fresh and organic products. 92 OUTLETS RETAIL SPACE OF 80 TO 120 SQUARE METRES St. Once meets event catering needs with a quality offering, selecting fine products that are then featured in creative recipes designed in its workshops. Firmly rooted in the sport industry, the banner holds concessions with major French stadiums and racetracks. St. Once also designs and delivers a wide range of meal boxes for companies. Development of the lunch break offering with hot meals delivered and meal boxes created by Michelin-starred chef Florent Ladeyn. Concessions include a new business offering for theme-based stands by type of food (burgers, fish and chips, etc.). Set-up of a partnership to deliver lunch boxes to businesses. 170 EMPLOYEES 12 MAIN KITCHENS 76 77 CASINO GROUP 2017 ANNUAL REPORT FRANCE, LATIN AMERICA, SOUTHEAST ASIA, AFRICA, INDIAN OCEAN Expert in energy production, energy efficiency and energy services 200 EMPLOYEES 123 PHOTOVOLTAIC POWER PLANTS 1,200 EPCs (ENERGY PERFORMANCE CONTRACTS) Retail offering In 2017 GreenYellow addresses all needs across the energy management spectrum. As a long-term local partner, GreenYellow works to turn the energy transition into shared value creation. Its expertise covers all the factors that go into the consumer's energy bill: decentralised energy production, guaranteed energy consumption reductions with the Energy Performance Contract, cost reduction, and energy services with purchasing and energy use management features. Launch of service as an electricity supplier for residential customers in France. Solar power plant and energy efficiency facilities at the Les Almadies shopping centre in Dakar, Senegal. Completion of the largest urban solar farm in Brazil, on the roof of the Assaí store in Goiânia. Construction started on the Ambatolampy solar farm in Madagascar, which will deliver 20 MW of power and cover electricity needs for 50,000 households. “With you every day!” REUNION ISLAND, MAURITIUS Convenience hypermarkets and supermarkets Retail offering In 2017 Jumbo and Score are the leading banners on Reunion Island, with a primarily food-based range, featuring a significant proportion of local products and nearly 3,000 Casino brand products. The stores operate a network of 18 drive-throughs. Events organised to celebrate the 45th anniversary of the Score banner. Remodelling of half of the banner’s stores. Launch of contactless payment service. 7 HYPERMARKETS 17 SUPERMARKETS AVERAGE RETAIL SPACE OF 500 TO 6,000 SQUARE METRES REUNION ISLAND Retail offering Cash & carry In 2017 5 STORES The cash & carry banner for food industry professionals: small shops and restaurants. Completion of the store renovation programme. AVERAGE RETAIL SPACE OF 1,000 SQUARE METRES REUNION ISLAND Small convenience stores Retail offering In 2017 20 STORES Doukabé caters to city dwellers with low prices and an offering to cover everyday needs. Continued expansion with six new stores opened. AVERAGE RETAIL SPACE OF 150 SQUARE METRES MADAGASCAR Retail offering Popular convenience stores In 2017 30 STORES Active in Antananarivo, SuperMaki is a network of neighbourhood shops associated with Jumbo Score. 12 new outlets came under the banner. AVERAGE RETAIL SPACE OF 150 SQUARE METRES 78 79 CASINO GROUP 2017 ANNUAL REPORT Colombia DISCOUNT BANNERS CONVENIENCE BANNERS QUALITATIVE BANNER Brazil DISCOUNT BANNERS CONVENIENCE BANNERS QUALITATIVE BANNER Uruguay DISCOUNT BANNERS CONVENIENCE BANNERS QUALITATIVE BANNER E-COMMERCE E-COMMERCE Argentina DISCOUNT BANNERS CONVENIENCE BANNERS Latin America Long-standing, multi-format banners, retail leaders in Colombia and Brazil, that are boosting their synergies to innovate and better serve customers. no. 1 no. 1 retailer in Brazil retailer in Colombia 3,050 stores 151,157 employees 80 CASINO GROUP 2017 ANNUAL REPORT “A pleasure for every day” “To serve you” COLOMBIA Premium supermarkets and convenience stores COLOMBIA Multi-format banner AROUND 5,000 EMPLOYEES 100 OUTLETS AVERAGE RETAIL SPACE OF 840 SQUARE METRES FOR SUPERMARKETS – 230 SQUARE METRES FOR EXPRESS STORES 23,700 EMPLOYEES 263 OUTLETS HYPERMARKETS: RETAIL SPACE OF 7,500 TO 10,000 SQUARE METRES Retail offering In 2017 Retail offering In 2017 Carulla, a premium supermarket and convenience store banner, is the Colombian specialist in quality fresh produce, with an enhanced market area, traditional food sections, imported gourmet products and a vast selection of sustainable local products. The banner builds strong relationships with its customers, both in stores and on social media. Launch of the first Carulla FreshMarket in Bogotá: this concept store, unique in Colombia, offers consumers a new responsible purchasing experience. Sales grew by 12% after introduction of the new concept. Excellent results from the Quality Service Audit customer satisfaction survey. Carulla joined the top ten most powerful brands on social media in Colombia, according to Dinero magazine. Colombia’s long-standing No. 1 retailer, Éxito addresses a broad customer base with a vast network including hypermarkets, supermarkets and convenience stores operating in 73 cities throughout the country. It has also built up a strong, locally produced apparel line which has become an industry leader. The exito.com website is designed to address changing consumer habits in support of the physical store network. Launch of a new promotional policy, “Precio Insuperable”: Éxito guarantees the lowest prices on 200 private-label products, and reimburses twice the price if customers find a given item at a lower retail price elsewhere. Alliance with Rappi, a pure player specialised in last-mile logistics: in six major cities, Éxito customers are delivered free of charge in less than 35 minutes by the 3,500 delivery workers in the network. Overhaul of the electronics and home appliance offering based on the “Tecnamórate” concept. 82 83 CASINO GROUP 2017 ANNUAL REPORT COLOMBIA Discount supermarkets Retail offering In 2017 Very popular supermarkets due to their competitive offering of food products, Surtimax and Super Inter enjoy complementary geographical locations. The two supermarket banners have forged an alliance with small, traditional stores. In all, 1,300 local shops have since joined the “Aliados” networks. Price reduction policy on 280 everyday essential products. Implementation of the “SuperMax” programme to share best practices in fresh produce and purchases. Launch of the “Operación Rescate” campaign to win back lapsed customers. 5,300 EMPLOYEES SURTIMAX: 131 OUTLETS SUPER INTER: 71 OUTLETS “Savings for you and your business” COLOMBIA Cash & carry Retail offering In 2017 A cash & carry banner created in 2016, Surtimayorista offers food professionals a comprehensive selection, mainly including fresh produce, and an assortment adapted to the local customer base. Surtimayorista uses efficient processes to guarantee the lowest prices and logistics suited to bulk purchases. Expansion with seven new stores opened, mainly in the centre and coastal regions of the country. Introduction of a wholesale counter for retailers. Development of bulk product sales. 300 EMPLOYEES 9 OUTLETS AVERAGE RETAIL SPACE OF 1,500 SQUARE METRES COLOMBIA Shopping centres 12 SHOPPING CENTRES 16 SHOPPING ARCADES TOTAL RETAIL SPACE OF 375,000 SQUARE METRES Retail offering In 2017 Viva Malls is the retail property leader in Colombia. Its neighbourhood shopping centres offer consumers a shopping experience suited to specific local conditions. The 29 Viva shopping centres and arcades currently have 1,100 retail tenants. Two new shopping centres are under construction. One of these is Viva Envigado, which will be the largest retail and office complex in Colombia when it opens in 2018. Launch of the “Calle Bistró” street food concept at Viva Barranquilla. Progress on the expansion plan with the development of Viva Envigado and Viva Tunja, which will open their doors in the second half of 2018. Viva Malls named “Developer of the year” by the International Federation of Property Professionals for its assertive regional action. Awards granted to the Viva Wajiira and Éxito Mosquera shopping centres for their sustainable approach as part of the national event Construverde 2017. 84 85 CASINO GROUP BRAZIL Cash & carry “Always the best deal” BRAZIL Hypermarkets and supermarkets 2017 ANNUAL REPORT 26,375 EMPLOYEES 126 OUTLETS AVERAGE RETAIL SPACE OF 4,000 SQUARE METRES 32,132 EMPLOYEES 305 OUTLETS AVERAGE RETAIL SPACE OF 3,000 SQUARE METRES Retail offering In 2017 Retail offering In 2017 Now operating in 17 Brazilian states, Assaí Atacadista is a cash & carry operator for small retailers and restaurants, as well as individuals drawn to low wholesale prices. Stores offer more than 7,000 products from major brands: dry goods, fresh produce, beverages, packaging, home and garden, hygiene and cleaning products. The low operating costs, competitive prices, product mix and volume of merchandise make for a successful business model. Continued progress in the expansion plan, with 20 stores opened, including 15 conversions of Extra hypermarkets. Roll-out of processes to improve the purchasing experience and reduce costs. Successful launch of the Passaí store card: 110,000 cards sold in four months across 70 stores. Commissioning of the largest urban solar farm in Brazil at Assaí Goiânia. Extra Hiper offers integrated product and service solutions at competitive prices. The banner develops a vast assortment of food products, a market area, traditional food sections and an attractive non-food offering including appliances, apparel and housewares. Extra Supermercado meets Brazilians’ everyday needs by combining a wide selection of quality products, especially under its private labels, with attractive promotional campaigns. Strong growth in non-food sales, especially with the opening of corners dedicated to large specialised retailers. Further digitisation of the Clube Extra loyalty programme: the mobile app features the new “Meu Desconto” platform, which offers personalised deals and a dynamic shopping list feature that can be used in stores or online. 86 87 CASINO GROUP 2017 ANNUAL REPORT “It’s easy to be happy” BRAZIL Premium supermarkets 16,570 EMPLOYEES 186 OUTLETS AVERAGE RETAIL SPACE OF 1,300 SQUARE METRES Retail offering In 2017 A sustainable consumption pioneer in Brazil, Pão de Açúcar has also set itself apart over the years with its innovative services, such as expert advice at the wine cellar and cheese counter sections, and its active loyalty programme, Pão de Açúcar Mais. Enhancing the shopping experience, the stores offer a broad range of food products that cover every need, from the basic day-to-day to the exceptional. Corporate campaign to illustrate the slogan “É simples ser feliz” (“It’s easy to be happy”). Development of the Pão de Açúcar Mais loyalty app, which features the “Meu Desconto” platform with personalised deals. Implementation of the “Caixa Express” service at 95% of stores, which lets customers reserve a time to go through check-out. Roll-out at 50 stores of a new concept focused on fresh produce and the customer experience. BRAZIL Premium convenience stores Retail offering In 2017 The Pão de Açúcar convenience format launched in 2014 operates quality convenience stores providing customer advice, sustainable consumption options, differentiated assortments, and an elegant atmosphere that meets top international standards. Its stores operate in São Paulo and Recife. Six new stores opened under the banner. Deployment of the Pão de Açúcar Mais digital loyalty programme. Operational excellence and cost management programme. “You need it, we got it” BRAZIL Small urban convenience stores Retail offering In 2017 A convenience concept that fosters a neighbourhood spirit, Mini Extra meets the day-to-day lifestyle needs of city dwellers, providing essential food products and quality fresh produce at competitive prices. Simplified business model with a condensed assortment and new pricing policy. Large-scale renovation of 145 stores in the state of São Paulo. Banner rebranded as Mini Extra, with the slogan Precisou, resolveu (“You need it, we got it”). 1,217 EMPLOYEES 82 OUTLETS AVERAGE RETAIL SPACE OF 250 SQUARE METRES 1,888 EMPLOYEES 183 OUTLETS AVERAGE RETAIL SPACE OF 250 SQUARE METRES 88 89 2017 ANNUAL REPORT ARGENTINA Multi-format banner 3,227 EMPLOYEES 15 HYPERMARKETS AND 14 CONVENIENCE STORES RETAIL SPACE OF 170,000 SQUARE METRES Retail offering In 2017 The success of the Libertad model in Argentina is based on its dual “retail and property” strategy, with attractive shopping centres under the Paseo banner built around Libertad hypermarkets. The subsidiary currently has an asset portfolio covering 170,000 square metres. The banner is also developing its food offering, especially with the FreshMarket concept imported from neighbouring Uruguay. Extension and renovation of the Paseo San Juan and Paseo Rivera Indarte shopping centres. First FreshMarket concept store opened. Accelerated development of market areas, with over 20% growth in fruit and vegetable sales at both of the banner’s formats. Ongoing expansion of the small convenience format with four Libertad stores opened in Córdoba. CASINO GROUP URUGUAY Urban supermarkets and convenience stores 2,613 EMPLOYEES Retail offering In 2017 With its supermarkets and small convenience stores located in the capital Montevideo and the sea resort Punta del Este, the banner brings urbanites a quality food offering and non-food assortment focused on pleasure purchases. Ongoing expansion with nine Devoto Express stores opened. Enlargement of the market area and fruit and vegetable line-up. 24 SUPERMARKETS 33 DEVOTO EXPRESS “With you, every day” URUGUAY Urban supermarkets Retail offering In 2017 Operating in Montevideo and Punta del Este, Disco meets the new needs of city dwellers and holiday makers with a vast food offering, and is deploying two new concepts: FreshMarket, an innovative solution featuring fresh produce, snacks and sustainable consumption, and Home, dedicated to appliances, electronics and housewares. Disco Fresh Market opened in the Punta Carretas district of Montevideo, a 4,000 square metre flagship store, featuring a vast restaurant with seating or take-away service, and a lounge, salad bar, pasta bar, etc. Ongoing roll-out of FreshMarket with nine stores. 2,810 EMPLOYEES 29 OUTLETS AVERAGE RETAIL SPACE OF 1,000 SQUARE METRES 90 91 CASINO GROUP 2017 ANNUAL REPORT International expansion The Casino Group continues to expand its banners’ operations in various countries through affiliated stores, while also developing private-label supply partnerships in new markets. Enhanced presence in the Middle East The property company Meraas signed a partnership agreement with the Casino Group to open 33 franchise stores in the United Arab Emirates. This move is the first step towards multi-format and multi-banner development, in line with the Group's strategy, and gives the Group a lasting foothold in the Middle East. CASINO GROUP LOCATIONS: Subsidiaries Affiliated stores Supply contracts Bao, the first cash & carry store in Cameroon In Douala, the Casino Group opened Bao, the first cash & carry concept store adapted to the Cameroon market. This life-size test project offers a new alternative between informal retail and premium large retail stores, such as the Géant Casino and Casino Supermarkets franchises operating in the country. The 2,000 square metre store offers retailers a full range of 3,000 quality products at affordable prices. 92 Canada Russia Saint Pierre and Miquelon Saint Martin Saint Barthelemy Guadeloupe Martinique Colombia French Guiana Brazil Argentina Uruguay Belgium Luxembourg France Romania Andorra Portugal Spain Azerbaijan Morocco Tunisia Lebanon Mali Niger Senegal Guinea Burkina Faso Central African Republic Benin Cameroon Côte d’Ivoire Togo Equatorial Guinea Qatar Dubai Oman Djibouti Sao Tome Gabon Republic of the Congo Democratic Republic of the Congo Mayotte China Japan Hong Kong Taiwan Thailand Cambodia Philippines Malaysia Singapore Madagascar Mauritius Reunion Island New Caledonia Exclusive partnership with Marjane in Morocco A leading retailer present in 27 Moroccan cities, Marjane has made Casino its main private-label brand with 1,500 Casino products on offer, ranging from groceries to frozen food and also hardware. 93 CASINO GROUP 2017 ANNUAL REPORT Governance, CSR and finance: a strong, sustainable model —Elected by the Annual General Meeting, the Group’s Board of Directors will be gender balanced as from 2018. —Qualitative banners are one of the key drivers of the Group’s profitability. 94 95 —Promoting diversity and equal opportunity at work builds team spirit and performance. CASINO GROUP 2017 ANNUAL REPORT 42% of members of the Board of Directors are independent3 50% of directors are women3 GOVERNANCE The Board of Directors Following the Annual General Meeting of 15 May 20181, the Board of Directors will be comprised of 12 directors elected by the Annual General Meeting and one director representing employees. Jean-Charles Naouri Chairman and Chief Executive Officer. Nathalie Andrieux Chief Executive Officer of Geolid. Independent Director. Diane Coliche Representative of Matignon-Diderot. Chief Financial Officer of Monoprix. Gilbert Delahaye Director of Intra-group CSR Projects at Casino Services. Director representing employees. Jacques Dumas Representative of Euris. Advisor to the Chairman of Casino. Deputy Chief Executive Officer of Euris. Christiane Féral-Schuhl Lawyer/Partner. Independent Director. Laure Hauseux Independent Company Director. Independent Director. Lady Sylvia Jay Independent Company Director. Independent Director. Didier Lévêque Representative of Finatis. Corporate Secretary of Euris. Chairman and Chief Executive Officer of Finatis. Catherine Lucet Chief Executive Officer of the Education and Reference division of Editis. Independent Director2. David de Rothschild Legal Manager of Rothschild et Cie Banque and Managing Partner of Rothschild et Cie. Frédéric Saint-Geours Chairman of the Supervisory Board of SNCF. Michel Savart Representative of Foncière Euris; Advisor to the Chairman of the Rallye/ Casino Group. Chairman and Chief Executive Officer of Foncière Euris. Henri Giscard d’Estaing Chairman of Club Med. Non-Voting Director. Gilles Pinoncély Company Director. Non-Voting Director. Gérald de Roquemaurel Legal Manager of BGR Partners. Non-Voting Director. Kareen Ceintre Secretary of the Board of Directors. 1 Subject to the election or re-election of the proposed candidates. 2 Appointed Lead Independent Director following the Annual General Meeting. 3 Excluding the director representing employees, in accordance with the Afep-Medef Corporate Governance Code for French listed companies or as required by law. Organisation and procedures of the Board of Directors The rules governing the organisation and procedures of the Board of Directors are defined by law, the Company’s Articles of Association and the Board’s Charter. They are presented in detail in the 2017 Registration Document filed with the French securities regulator, the Autorité des Marchés Financiers (AMF). Directors are elected for a term of three years. In accordance with the Company’s Articles of Association and the Afep- Medef Code, the Board is re-elected in part each year on a rotation basis. The terms of the following directors are therefore expiring at the Annual General Meeting of 15 May 2018: Nathalie Andrieux, Sylvia Jay, Catherine Lucet and Finatis. The Board of Directors seeks to ensure that its membership is aligned with the prin- ciples of the Afep-Medef Code. With the assistance of its specialised committees, t h e Boa rd per iod ica l ly a ssesses i ts structure and composition as well as that of its committees. Decisions to recommend candidates to the Annual General Meeting for election or re-election to the Board take into account the findings of such assessments and recommendations by the Appointments and Compensation Committee. Employees are also repre- sented on the Board, in accordance with the law and the Company’s Articles of Association. The Board’s constant aim is to maintain a diverse and complementary range of skills and experience among its members, achieve a balanced representation of men and women and exceed the one-third threshold of independent directors recom- mended by the Afep-Medef Code for French companies with a controlling share- holder (which is the case of Casino). Candidates are recommended for election or re-election with a view to maintaining or achieving this harmonious balance and ensuring that directors’ collective skills are aligned with the Group’s business and development strategy. The Board of Directors considers that its present size is appropriate. In accordance w i t h t h e r e c o m m e n d a t i o n o f t h e A p p o i n t m e n t s a n d C o m p e n s a t i o n Committee, it has therefore submitted a number of related resolutions to the Annual General Meeting of 15 May 2018. It recom- mends that shareholders re-elect Nathalie Andrieux, Sylvia Jay and Catherine Lucet as well as Finatis, represented by Didier Lévêque. It also recommends that shareholders elect a new director, Laure Hauseux, to replace Gérald de Roquemaurel, who is being recommended for appointment as a non- voting director. Laure Hauseux would bring a wealth of experience and expertise to the Board in areas which are relevant to the Company’s business. As part of its delegated responsibilities, the Appointments and Compensation Committee conducted its annual review of the independence of each of the directors comprising the Board as submitted to the Annual General Meeting of 15 May 2018 (if all the resolutions are approved by the shareholders). On shareholder approval, the Board of Directors would therefore be comprised of a total of 13 directors, including 12 elected by the Annual General Meeting and one director representing employees. Five directors would be independent (42%) and six would be women (50%). Five members would fulfil all the inde- pendence criteria of the Afep-Medef Code: Nathalie Andrieux, Christiane Féral-Schuhl, Sylvia Jay and Catherine Lucet as well as new director Laure Hauseux. The Board would also include two qualified non-independent individuals from outside the Company, David de Rothschild and Frédéric Saint-Geours, who will lose his status as an independent director following the Annual General Meeting of 15 May 2018 in accordance with the 12-year service criterion of the Afep-Medef Code. The controlling shareholder would be still be represented by five directors: Jean- Charles Naouri, Chairman and Chief Executive Officer, Jacques Dumas, Didier 96 97 CASINO GROUP 2017 ANNUAL REPORT Lévêque, Michel Savart and Diane Coliche. Gilbert Delahaye, designated in May 2017 as a director representing employees by the most representative trade union, has since joined the Board of Directors. In accordance with the Afep-Medef Code, he is not taken into account when calculating the percentage of independent directors and gender representation on the Board, as required by law. LEAD INDEPENDENT DIRECTOR In 2012, following a proposal by the C h a i r m a n a n d i n a c c o r d a n c e w i t h AMF recommendations, the Board of Directors appointed a Lead Independent Director in order to ensure that the prin- ciples of good governance are upheld in the exercise of the combined roles of Chairman and Chief Executive Officer. Frédéric Saint- Geours, who has been Lead Independent Director since 7 July 2015, will be replaced by Catherine Lucet following the Annual General Meeting of 15 May 2018. In the annual assessment of the Board of Directors’ procedures, the directors’ ratings and comments once again indicated that they were satisfied with the Board’s organisation and procedures, both from an ethical standpoint and in terms of corporate governance principles. 2017 key figures 10 meetings 95% attendance rate 1 meeting held at a Group-owned retail location Board Committees In late 2017, the Board of Directors decided to expand the duties of the Governance Committee to include corporate social responsibility issues and subsequently changed the name of said Committee to the Governance and CSR Committee. The Board of Directors works with three s p e c i a l i s e d c o m m i t te e s : t h e Au d i t Co m m i t te e, t h e A p p o i n t m e n t s a n d C o m p e n s a t i o n C o m m i t te e a n d t h e Governance and CSR Committee. The Chairman and Chief Executive Officer does not sit on any committee. Subject to shareholder approval of the candidates proposed for election or re-election, the composition of the com- mittees will change following the Annual General Meeting of 15 May 2018. AUDIT COMMITTEE Following the Annual General Meeting, the Audit Committee would be comprised of three members: Frédéric Saint-Geours (Chairman) and independent directors Laure Hauseux and Catherine Lucet. It previously included three independent directors: Catherine Lucet (Chair), Frédéric Saint-Geours and Gérald de Roquemaurel. All members of the Audit Committee hold or have held senior executive positions and therefore have the financial or accounting skills required by Article L. 823-19 of the Fre n c h Co m m e rc i a l Co d e ( Co d e d e Commerce). The Audit Committee is responsible for assisting the Board of Directors in reviewing and approving the annual and interim financial statements and in dealing with transactions or events that could have a material impact on the position of Casino, Guichard-Perrachon or its subsidiaries in terms of commitments that such systems comply with legal and regulatory provisions. In addition, it analy- ses the Group’s inclusion in SRI indices and examines the non-financial information disclosed in the annual management report. The Committee’s organisation and proce- dures are described in a charter approved by the Board of Directors. The Governance Committee met three times in 2017, with an attendance rate of 100%. — and/or risks. Accordingly, pursuant to Article L.823-19 of the French Commercial Code, the Committee is in charge of matters relating to the preparation and auditing of accounting and financial information. Specifically, it monitors the effectiveness of the internal control and risk management systems, the audit of the parent company and consolidated financial statements by the Statutory Auditors and the Statutory Auditors’ independence. Since 2015, as part of a good governance process and in order to better identify and manage potential conflicts of interest, it has also been tasked with reviewing signif- icant agreements with related parties prior to their conclusion. A charter sets out the Committee’s powers and duties, particularly those concerning risk management, the identification and prevention of management errors and the procedure by which agreements with relat- ed parties are reviewed. The Audit Committee met six times in 2017, with a 100% attendance rate. APPOINTMENTS AND COMPENSATION COMMITTEE Following the Annual General Meeting, the Appointments and Compensation Committee would be comprised of four members: Nathalie Andrieux (Chair) and Sylvia Jay, both independent directors, Gilbert Delahaye, a director representing employees, and David de Rothschild. As before, it would include a majority of inde- pendent directors within the meaning of the Afep-Medef Code. The Committee was previously comprised of four directors: Gérald de Roquemaurel (Chairman) and Nathalie Andrieux, both independent direc- tors, Jacques Dumas, and Gilbert Delahaye, a director representing employees. The Appointments and Compensation Committee’s primary role is to assist the Board of Directors in a) reviewing candidates for appointment to Senior Management positions and for election to the Board of Directors, b) assessing directors’ independence, c) setting and overseeing executive corporate officers’ compensation as well as stock option and share grant policies, and d) establishing e m p l o y e e s h a r e o w n e r s h i p p l a n s . A charter, approved by the Board of Directors, sets out its powers and duties. The Appointments and Compensation Committee met five times in 2017, with a 100% attendance rate. GOVERNANCE AND CSR COMMITTEE Following the Annual General Meeting, the Governance and CSR Committee would be comprised of four members: Catherine Lucet (Chair and Lead Independent Director), Nathalie Andrieux and Christiane Féral-Schuhl, all independent directors, and Frédéric Saint-Geours. It previously includ- ed three directors: Frédéric Saint-Geours (Chair and Lead Independent Director) and Sylvia Jay, both independent directors, and David de Rothschild. The Committee’s duties have been deter- mined so as to complement those of the other two committees. It assists the Board in implementing and applying governance rules and best practices and monitors all ethical issues relating to the directors, the assessment of the Board of Directors’ pro- cedures and the management of conflicts of interest. It also examines the structure, size and composition of the Board on a regular basis. A s f r o m 1 5 D e c e m b e r 2 0 1 7, t h e Committee’s duties were expanded to include CSR issues. Therefore, in line with the Group’s strategy, it examines the Group’s ethics, human resources, environ- mental and social commitments and policies and reviews their implementation a n d r e s u l t s . A l o n g s i d e t h e A u d i t Committee, it ensures that systems for identifying and managing the main risks relating to ethics and CSR are in place and 98 99 CASINO GROUP 2017 ANNUAL REPORT RESPONSIBILITY The CSR programme, driving growth The Group’s fundamental commitment to promote diversity, articulated in its signature phrase “Nourishing a world of diversity”, has long been recognised. In 2009, Casino was the first retailer to obtain France’s Diversity Label, and in 2013 the Equality Label. COMMITMENT AT EVERY LEVEL Disseminated through a vast training programme (see box), the CSR pro- gramme is supported by the Group’s top management and is deployed at every level. For 2018, 5% of the variable com- pensation paid to the Group’s managers in France, Brazil and Colombia will be contingent on meeting predefined, quantifiable CSR performance targets. This policy also applies to members of the Group Executive Committee. — F or more than 25 years, the Casino Group has made it a key priority to serve the common good. Fully aware that its business must benefit all of its stakeholders and have a positive impact on its environment, the Group also works to meet the increas- ingly high standards that consumers and citizens set for companies. The Group’s corporate social and envi- ronmental responsibility programme is in no way a hindrance. Instead, it is a pow- erful vector for driving growth, to boost employee motivation and engagement, increase its competitive edge, attract talent and enhance the lasting, trust- based relationships that it has built with its stakeholders. CONCRETE, RECOGNISED ACTIONS In 2011, the CSR programme was struc- tured into five main areas, each backed with action plans and annual internal and external reviews. With support from the highest levels of the organisation, these action plans are concretely imple- mented by the banners and cover every area of the company, including purchas- ing, operations, logistics and private labels. CSR training: basic courses plus specific issues Recognition in benchmark indices The Group's inclusion in these SRI indi- ces, which comprise the top performing companies in terms of social, environ- mental and governance criteria, demon- strates its strong commitment to CSR. In 2017, the Casino share was included in the following SRI indices: The Group relies on its internal training centres to raise employee awareness about anti-discrimination measures, caring management practices and responsible dialogue with local officials. These issues are developed in a set of basic courses supplemented by specific modules that cover the CSR issues faced by different professions. For example, training for seafood chefs now includes information on sustainable fishing, while training for Casino restau- rant managers touches on issues such as food waste and the nutritional impact of products. THE 15 PRIORITIES OF THE “SPIRIT OF CSR” CONTINUOUS IMPROVEMENT PROGRAMME COMMITTED EMPLOYER RESPONSIBLE RETAILER TRUSTED PARTNER Promote diversity Help young people enter the workforce Provide growth opportunities for employees Take action for health, safety and well-being at work Take action to protect consumer health Encourage consumption that is respectful of the environment and biodiversity Combat food waste Strengthen ethical social compliance Support local production channels Promote the CSR initiatives of suppliers ENVIRONMENTALLY COMMITTED GROUP LOCAL CORPORATE CITIZEN Reduce greenhouse gas emissions Develop foundation programmes Increase energy efficiency Develop solidarity partnerships Reduce and recover waste 100 101 CASINO GROUP 2017 ANNUAL REPORT RESPONSIBILITY CSR performance indicators Committed employer Workforce by full-time/part-time employment(1) Group France(2) Brazil Colombia Other(3) 85% 15% 74% 26% 95% 5% 82% 18% 77% 23% ● % of the workforce in full-time employment ● % of the workforce in part-time employment Most Casino Group employees (85%) work full time. Consolidated workforce by country(1) Consolidated workforce by age(1) Representation of women in the consolidated workforce and in management by country(1) ● 44% Brazil ● 33% France(2) ● 18% Colombia ● 5% Other(3) ● 47% Workforce aged 30 to 50 ● 39% Workforce under the age of 30 ● 14% Workforce aged over the age of 50 ● % of female employees ● % of female managers Group France(2) Brazil Colombia Other(3) 53% 38% 57% 40% 51% 32% 50% 30% 52% 24% 77% of the consolidated workforce is based in France and Brazil. Reflecting its commitment to bringing young people into the job market, Casino has more than 86,970 employees under the age of 30. Workforce by type of employment contract (permanent/fixed-term)(1) Employees with recognised disabilities by country(1) Group France(2) Brazil Colombia Other(3) 93% 7% 92% 8% 97% 3% 87% 13% 87% 13% 102 ● % of employees in permanent employment ● % of employees in fixed-term employment A large majority of Casino Group employees (93%) have permanent work contracts. ● 56% France(2) ● 41% Brazil ● 2% Colombia ● 1% Other(3) (1) Total workforce under permanent or fixed-term contracts at 31 December 2017. (2) France: Casino, Franprix, Leader Price, Monoprix, Cdiscount and Vindémia. (3) Libertad (Argentina), Disco and Devoto (Uruguay). The gender diversity of our teams is being enhanced by pro-active policies addressing the full range of workplace equality issues, including gender diversity across job categories, career management services for women, fairness in human resources processes (compensation, training, hiring and promotions) and parenthood. In 2016, the Group adopted the Women’s Empowerment Principles backed by UN Women. The number of disabled employees increased by 4.6% compared with 2016 as a result of programmes implemented over the last several years in France and abroad. GPA increased the number of disabled employees in its workforce by 15% compared with 2016. 103 CASINO GROUP 2017 ANNUAL REPORT Environmentally committed group Change in greenhouse gas emissions in absolute value(1) Change in energy efficiency by Group operating unit, 2015-2017, in kWh/sq.m Scope 1+2 Scope 2 Scope 1 tonnes of CO2 equivalent 500,000 1,000,000 1,500,000 2,000,000 ● 2017 ● 2016 ● 2015 Greenhouse gas emissions by origin(2) Scope 1 ● 67% Refrigerants ● 6% Heating oil ● 2% Fuel for transport of goods*(3) ● 1% Fuel for vehicle fleet Scope 2 ● 24% Electricity ● 0.2% District heating system In 2017, the absolute value of Scope 1 and Scope 2 emissions decreased by 7% compared with 2015 on a like-for-like basis. This decrease was achieved thanks to stores reducing their Scope 1 emissions by 8% and their Scope 2 emissions by 6%. In 2017, Casino’s emissions profile remained relatively stable. Emissions from the consumption of refrigerants and electricity accounted for 91% of Scope 1 and Scope 2 greenhouse gas emissions. Group Casino Monoprix Franprix Leader Price Vindémia GPA Éxito Disco and Devoto Libertad 581 491 566 595 807 702 468 825 743 kWh/sq.m 200 400 600 800 1,000 ● 2017 ● 2016 ● 2015 Amount of waste recovered and reused(1), on a like-for-like basis Group France(2) Brazil Colombia Other(3) 2017 2016 2017 2016 2017 2016 2017 2016 2017 2016 The improvements reported between 2016 and 2017 in Latin America were made possible by the continued roll-out of energy performance contracts in all countries and the implementation of an energy management system that complies with ISO 50001. Average electricity intensity in Latin America fell by 2% between 2016 and 2017. On a like-for-like basis, the amount of waste sorted by the stores for recovery and reuse increased slightly in 2017. Over the past three years, the measures taken have led to a 5% increase in the amount of waste collected for recovery and reuse. (1) Excluding direct fugitive emissions of Franprix and Éxito. (2) Excluding Éxito and Franprix. (3) Includes transport of goods under operational control for the logistics segment between warehouses and stores. tonnes of waste recovered and reused 50,000 100,000 150,000 200,000 ● Cardboard ● Other (1) Excluding Multivarejo and Vindémia. (2) France: Casino, Franprix, Leader Price, Monoprix, Cdiscount. (3) Libertad (Argentina), Disco and Devoto (Uruguay). 104 105 CASINO GROUP 2017 ANNUAL REPORT Responsible retailer Local corporate citizen Number of national-brand and private-label products certified as sustainable(1) Donations of foodstuffs in meal equivalents ● 23,148 France(2) ● 2,725 Brazil ● 422 Colombia ● 392 Other(3) Trusted partner ICS social audits performed ● 74% Initial audits ● 26% Follow-up audits Casino Group stores now carry more than 26,680 products certified as sustainable, an increase of 36% over 2016. In particular, a wide range of organic food products is available, with more than 17,420 items on store shelves across the Group, up 26% compared to 2016. ● France ● Brazil ● Colombia ● Other(4) In 2017, 20,800 tonnes of products, the equivalent of over 41 million meals (up 29% year on year), were donated by the Group to food bank networks or other similar charities (donations from stores and warehouses). In 2017, a total of 1,245 social audits were validated concerning supplier plants, in accordance with ICS (Initiative Clause Sociale) methodology, of which 71% were led directly by the Group. Of the 885 audits conducted in 2017, 74% were initial audits and 26% were follow-ups. Of the audited manufacturers, 59% were based in China, 9% in Bangladesh and 3% in India. 106 107 (1) Organically farmed products, organic or eco-friendly hygiene and personal care products, fair trade products, products with certification attesting to an environmental progress programme, e.g., MSC, NF Environnement, FSC, PEFC, Paper by Nature, OK Compost home, European Ecolabel, Ecocert labelling. (2) Products sold by Casino, Monoprix/Naturalia, Franprix, Leader Price, Cdiscount and Vindémia. (3) Products sold by Libertad (Argentina), Disco and Devoto (Uruguay). (4) Libertad (Argentina), Disco and Devoto (Uruguay). CASINO GROUP 2017 ANNUAL REPORT RESPONSIBILITY Principles and reporting scope of non-financial information I n fo r m a t i o n o n t h e Ca s i n o G ro u p’s corporate social responsibility process and its environmental, human resources and social performance has been prepared in accordance with the principles set out in the Group’s CSR reporting protocol, and distributed to everyone involved in the reporting process in France and in the international subsidiaries. The human resources, social and environmental data presented are aligned with financial reporting and, unless stated otherwise, cover all business activities under the operational control of the Casino Group or its major subsidiaries in France and abroad. Data concerning affiliates, franchises and business leases are not included. Reporting is on a fully consolidated basis (data included at 100%). “The Group” includes the consolidated data of French and international business units. These data exclude discontinued opera- tions in application of IFRS 5, i.e., Viavarejo and Cnova Brazil. I n fo r m a t i o n o n t h e Ca s i n o G ro u p’s corporate social responsibility process is also available on the corporate website www.groupe-casino.fr and in the 2017 Registration Document, which provides additional information about CSR perfor- mance and initiatives, as well as about the governance system and methods and prin- ciples applied. The Registration Document includes the report issued by the Statutory Auditors based on their 2017 review of the Company's CSR information. Cdiscount, GPA, Éxito, and Libertad each publish CSR information in their management reports or on their websites. The Group, as well as its subsidiaries Libertad, GPA and Éxito, are signatories of the United Nations Global Compact, and each publish a Communication on Progress report every year. UN Global Compact cross-reference table The Casino Group signed the United Nations Global Compact in 2009, thereby embracing its ten fundamental principles concerning human rights, labour, the environment and the fight against corruption. UNITED NATIONS GLOBAL COMPACT PRINCIPLES HUMAN RIGHTS 1. Businesses should support and respect the protection of internationally proclaimed human rights within their sphere of influence 2. Make sure that they are not complicit in human rights abuses LABOUR pages 28, 29, 56, 57, 60, 61 106 3. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining 110, 111 4. The elimination of all forms of forced and compulsory labour 106 5. The effective abolition of child labour 106, 110, 111 6. The elimination of discrimination in respect of employment and occupation ENVIRONMENT 11, 12, 56, 57, 100 to 103, 110, 111 7. Businesses should support a precautionary approach 10, 11, 30 to 35, to environmental challenges 58, 59, 104, 105 8. Undertake initiatives to promote greater 10, 11, 30 to 35, environmental responsibility 58, 59, 104, 105 9. Encourage the development and diffusion of environmentally friendly technologies ANTI-CORRUPTION 58, 59, 79, 86, 104, 105 10. Businesses should work against corruption in all its forms, - including extortion and bribery 108 109 CASINO GROUP CASINO GROUP 2017 ANNUAL REPORT 2017 ANNUAL REPORT CSR Indicators Committed employer Number of employees at 31 December 2017(1) Women Men Under 30 years old 30 to 50 years old Over 50 years old Under permanent contracts Full-time Percentage of female managers Disabled employees at 31 December 2017 People hired under permanent contracts during the year People under the age of 26 hired under permanent and fixed-term contracts Workplace accidents with at least one day of lost time Annual turnover of employees under permanent contracts Training hours per person Employees under permanent contracts promoted during the year Meetings with employee representatives during the year Number of Responsible Retailer and Trusted Partner products Products certified as “responsible”(2) Organic national-brand and private-label food products Donations of foodstuffs Environmentally committed group Greenhouse gas emissions, Scope 1(3) Greenhouse gas emissions, Scope 2 Total Electricity/sq.m of selling area Water consumption(4) Volume of operating waste recycled and reused(5) Waste recovery rate(6) Unit Number % % % % % % % % Number Number Number Number % Hours Number Number Number Number tonnes t CO2 t CO2 MWh kWh/sq.m cu.m tonnes % Group 226,606 53% 47% 39% 47% 14% 93% 85% 38% 7,465 45,016 55,688 8,134 24% 19 15,716 22,694 26,687 17,422 20,800 988,843 402,877 3,230,301 581 4,738,153 188,117 54% Casino Cdiscount Monoprix FPLP Vindémia GPA Éxito Disco/Devoto Libertad France Brazil Colombia Uruguay Argentina 36,614 58% 42% 23% 45% 32% 92% 71% 35% 3,024 5,139 10,531 1,907 15% 6 382 12,576 4,900 4,182 7,531 287,188 39,747 847,555 491 967,967 71,608 66% 1,730 44% 56% 30% 63% 7% 92% 98% 41% 45 352 152 75 10% 17 63 113 2,580 - - 3,328 418 9,018 - 21,292 2,187 75% 22,597 60% 40% 35% 43% 22% 93% 71% 51% 866 6,714 10,721 1,227 28% 4 711 5,481 12,896 9,450 3,086 9,858 51% 49% 27% 56% 17% 93% 79% 35% 106 1,244 2,115 1,145 20% 7 500 2,159 1,423 846 2,488 4,650 48% 52% 27% 59% 14% 91% 89% 36% 134 281 748 228 9% 5 157 637 1,349 1,078 2,189 100,288 51% 49% 44% 47% 9% 97% 95% 32% 3,062 28,177 15,709 1,246 30% 21 7,779 450 2,725 1,493 1,953 39,879 50% 50% 45% 47% 8% 87% 82% 30% 158 1,637 13,816 1,607 22% 43 5,086 888 422 195 1,864 7,767 55% 45% 45% 42% 13% 83% 86% 28% 43 1,324 1,763 529 18% 4 996 30 341 127 1,591 3,223 46% 54% 22% 75% 3% 97% 57% 17% 27 148 133 170 7% 15 42 360 51 51 98 99,821 17,770 342,677 566 250,964 27,249 54% 70,857 12,810 273,870 595 231,187 27,751 53% 19,704 34,418 49,099 807 44,798 2,408 45% 440,419 178,024 1,133,913 702 2,584,747 16,921 31% 4,922 84,460 422,302 468 180,070 31,279 50% 34,375 3,536 69,330 825 217,895 6,201 - 28,229 31,694 82,537 743 239,233 2,513 - Engaged local corporate citizen Funds distributed for community outreach (donations and foundations) € 84,696,413 23,537,452 125,737 13,065,904 8,678,207 6,737,561 12,138,207 14,826,065 5,253,851 333,429 Note: Group data exclude discontinued operations in application of IFRS 5, i.e., Viavarejo and Cnova Brazil. (1) Employees: Excluding leased and franchised stores. (2) Organically farmed products, organic or eco-friendly hygiene and personal care products, fair trade products, products with certification attesting to an environmental progress programme, e.g., MSC, NF Environnement, FSC, PEFC, Paper by Nature, OK Compost home, European Ecolabel and Ecocert labelling. (3) Scope 1 CO2 emissions cover 87% of Group sales (excluding direct fugitive emissions of Franprix and Éxito). (4) Group data cover 96% of Group sales (excluding Franprix). (5) Group data cover 81% of Group sales (excluding Multivarejo). (6) The Group waste recovery rate covers 71% of Group sales. 110 110 111 111 CASINO GROUP 2017 ANNUAL REPORT FINANCE Financial highlights Sales and results (in € millions) Net sales EBITDA(1) Trading profit Reported net profit, Group share Underlying net profit(2), Group share Consolidated net debt Net debt of Casino in France(3) 2017 37,822 1,930 1,242 120 372 4,126 3,715 2016 36,030 1,697 1,034 2,679 341 3,367 3,200 Per share data (in €) Underlying diluted earnings per share(1) Net dividend 2017 2.90 3.12(2) 2016 2.56 3.12 (1) EBITDA = trading profit + recurring net depreciation and amortisation expense. (2) Underlying net profit corresponds to net profit from continuing operations, adjusted for the impact of other operating income and expenses, as defined in the “Significant accounting policies” section of the notes to the consolidated financial statements, the impact of non-recurring financial items, and income tax expense/benefits related to these adjustments. (3) Scope: the Casino, Guichard Perrachon parent company, French businesses and wholly-owned holding companies. (1) Underlying diluted earnings per share includes the dilutive effect of Monoprix mandatory convertible bonds (ORA) in 2016 and of deeply subordinated perpetual bonds (TSSDI) in 2016 and 2017. (2) Dividend subject to shareholder approval at the Annual General Meeting on 15 May 2018. 112 113 CASINO GROUP 2017 ANNUAL REPORT FINANCE Net sales Change in consolidated net sales Breakdown of consolidated net sales Breakdown of net sales for France Retail (in € millions) France Retail Hypermarkets o/w Géant Casino Casino Supermarkets Monoprix Franprix – Leader Price Convenience & Other Latam Retail GPA Food Éxito (excluding GPA Food) Cdiscount GROUP 2017 2016 Change vs. 2016 Organic change vs. 2016(1) 18,903 18,939 4,728 4,448 3,253 4,317 4,132 2,473 16,923 12,379 4,544 1,995 4,722 4,432 3,301 4,230 4,111 2,575 15,247 10,749 4,499 1,843 37,822 36,030 -0.2% +0.1% +0.4% -1.5% +2.1% +0.5% -4.0% +11.0% +15.2% +1.0% +8.3% +5.0% +0.1% -0.2% +0.0% +1.2% +2.8% -1.3% -3.4% +6.4% +8.7% +1.2% +8.7% +3.2% ● 50% France Retail ● 45% Latam Retail ● 5% E-commerce ● 40% Qualitative banners (Monoprix and Casino Supermarkets) ● 38% Discount banners (hypermarkets including Géant Casino) and hard discount (Leader Price) ● 22% Convenience banners (Franprix, Casino Proximités and other) (1) Excluding fuel and calendar effects. 114 115 CASINO GROUP 2017 ANNUAL REPORT FINANCE EBITDA and trading profit Consolidated EBITDA(1) Change in consolidated trading profit (in € millions) France Retail Latam Retail E-commerce GROUP EBITDA margin France Retail Latam Retail E-commerce GROUP 2016 872 816 10 1,697 2017 901 1,029 0 1,930 2017 4.8% 6.1% 0.0% 5.1% 2017 at CER(2) 900 980 0 1,879 2016 4.6% 5.3% 0.5% 4.7% 2016 508 538 (11) 1,034 (in € millions) France Retail Latam Retail E-commerce GROUP Trading profit margin France Retail Latam Retail E-commerce GROUP 2017 556 713 (27) 1,242 2017 2.9% 4.2% (1.3)% 3.3% 2017 at CER(1) 554 679 (27) 1,207 2016 2.7% 3.5% (0.6)% 2.9% (1) EBITDA (earnings before interest, taxes, depreciation and amortisation) is defined as trading profit plus recurring depreciation and amortisation expense. (2) CER: constant exchange rates. 116 117 CASINO GROUP 2017 ANNUAL REPORT SHARES AND OWNERSHIP Share performance in 2017 Price at 31 December 2017 €50.6 Ownership structure at 9 March 2018 at 9 March 2018 Number of shares % Voting rights % Public Rallye Group 51,041,999 56,775,285 Casino Group employee mutual fund 1,060,399 Treasury shares 1,705,691 46.2% 51.3% 1.0% 1.5% 55,081,136 104,005,970 2,103,546 0 34.2% 64.5% 1.3% 0.0% Total 110,583,374 100% 161,190,652 100.0% 55 50 45 40 Price at 31 December 2016 €45.6 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Casino +10.9%* CAC 40 +9.3% * Change in Casino's share price in 2017: +10.9%; +17.6% including dividends paid over the period. The Casino share price is displayed in real time under "Casino share" in the Investors section of the corporate website: www.groupe-casino.fr/en/ 118 Stock exchange Euronext Paris (Compartment A) Symbol – ISIN: FR0000125585 – Bloomberg: CO FP – Reuters: CASP. PA Indices – Benchmark CAC NEXT 20, CAC Large 60, SBF 120, SBF 250, Euronext 100 – Sector DJ Stoxx and DJ Euro Stoxx Retail – Socially responsible investing • FTSE4Good • Euronext Vigeo indices: Eurozone 120, Europe 120 • Ethibel Sustainability Index (ESI) Excellence Europe • MSCI ACWI ESG Leaders Index and MSCI ACWI SRI Index • STOXX® Global ESG Leaders indices Eligible for the Deferred Settlement System (SRD) and for the PEA share savings plan (PEA) Shares outstanding 110,996,996 at 31 December 2017 Market capitalisation €5.6 billion at 31 December 2017 Credit rating Casino has been rated BB+ (stable outlook) by Standard & Poor’s since 21 March 2016 and Ba1 (stable outlook) by Moody’s Investors Service since 30 November 2017. Sponsored ADR programme Structure: Level I ADR Bloomberg ticker: CGUSY US CUSIP: 14758Q206 ADR depositary bank: Deutsche Bank Trust Company Americas Five-year share performance Average daily trading volume 2017 2016 2015 2014 2013 in number of shares 869,067 1,016,660 949,293 631,839 627,764 in € millions High/low High (in €) Low (in €) Closing price at 31 December (in €) Net dividend per share (in €) 44.5 46.3 59.3 54.1 49.1 56.9 46.5 50.6 3.12 54.9 35.2 45.6 3.12 87.9 38.7 42.4 3.12 97.5 70.0 76.5 3.12 86.8 68.5 83.8 3.12 Several major subsidiaries are also publicly listed: • CBD (Brazil) on the BM&F Bovespa in São Paulo and the NYSE (USA), • Éxito (Colombia) on the BVC in Colombia, • Cnova (Netherlands) on Euronext Paris. 119 CASINO GROUP 2017 ANNUAL REPORT France store network Number of stores at 31 December Retail space (in thousands of sq.m) 2015 2016 2017 2015 2016 2017 Number of stores at 31 December Retail space (in thousands of sq.m) 2015 2016 2017 2015 2016 2017 Géant Casino hypermarkets 128 129 122 926 916 856 Franprix o/w French affiliates International affiliates 7 11 7 12 Casino Supermarkets 441 447 o/w French affiliates/franchises International affiliates/franchises Monoprix and Monop’ o/w Monoprix franchises/affiliates Naturalia Naturalia franchises 60 33 698 197 126 3 83 33 745 196 141 5 7 5 433 106 17 789 211 161 7 722 733 715 o/w franchises o/w franchises Leader Price Convenience Indian Ocean 867 350 810 263 858 392 796 383 893 399 777 377 6,916 6,065 5,392 146 185 630 209 606 364 356 367 661 664 652 866 114 n/a 783 115 n/a 726 117 n/a 698 711 732 Other businesses (Food services, drive-through, etc.) 621 France TOTAL 10,627 9,855 9,221 4,350 4,280 4,167 120 121 CASINO GROUP 2017 ANNUAL REPORT International store network Number of stores at 31 December Retail space (in thousands of sq.m) 2015 2016 2017 2015 2016 2017 ARGENTINA Libertad hypermarkets Mini Libertad mini-supermarkets URUGUAY Géant Casino hypermarkets Disco supermarkets Devoto supermarkets Devoto Express convenience stores 27 15 12 65 2 29 24 10 27 15 12 79 2 29 24 24 29 15 14 88 2 29 24 33 112 111 2 83 16 32 33 2 109 107 108 106 2 85 16 31 33 4 2 89 16 33 33 6 BRAZIL 1,167 1,135 1,081 1,804 1,814 1,811 Extra hypermarkets Pão de Açúcar supermarkets Extra supermarkets Assaí (discount) 137 185 199 95 Minimercado Extra convenience stores 311 Drugstores + Service stations 157 83 134 185 194 107 284 155 76 117 186 188 126 265 127 72 803 237 228 373 79 12 73 789 237 222 421 71 11 62 717 240 215 506 65 10 58 Number of stores at 31 December Retail space (in thousands of sq.m) 2015 2016 2017 2015 2016 2017 1,668 1,873 1,852 970 1,011 1,022 COLOMBIA Éxito hypermarkets Éxito and Carulla supermarkets Super Inter supermarkets 85 163 58 86 166 67 90 162 71 Surtimax (discount) 1,248 1,443 1,409 o/w Aliados Cash & carry* Éxito Express and Carulla Express 1,095 1,307 1,278 2 9 113 109 111 Other 1 0 0 472 212 58 206 21 1 475 214 61 236 4 20 0 485 212 64 225 14 21 0 International TOTAL 2,927 3,114 3,050 2,970 3,019 3,030 122 123 * Previously included in the Surtimax line. The cash & carry line in Colombia includes one B2B store and Surtimayorista stores. CASINO GROUP 2017 ANNUAL REPORT You can find the 2017 Registration Document as well as our CSR progress reports on www.groupe-casino.fr CONTACTS Group External Communications Department Phone: +33 (0)1 53 65 24 29 E-mail: directiondelacommunication@groupe-casino.fr Financial Communication and Investor Relations Department Phone: +33 (0)1 53 65 64 17 E-mail: IR_casino@groupe-casino.fr Corporate Social Responsibility (CSR) Department Phone: +33 (0)1 53 70 51 97 External Relations Department Phone: +33 (0)1 53 65 64 26 Group website www.groupe-casino.fr/en/ SHAREHOLDER RELATIONS Casino, Guichard-Perrachon 1, cours Antoine Guichard CS 50306 – 42008 Saint-Étienne Cedex 1, France Website: www.groupe-casino.fr/en/ E-mail: actionnaires@groupe-casino.fr Toll-free number: 0800 16 18 20 (calls made from France only) To convert bearer shares to registered shares, contact the financial intermediary handling the shares concerned, who will in turn register them with: BNP Paribas Securities Services – GCT Shareholder Relations Grands Moulins de Pantin 9, rue du Débarcadère F-93761 Pantin Cedex, France Phone: +33 (0)1 40 14 31 00 Authorised agent for management of shareholder registration. Share capital of Casino, Guichard-Perrachon at 9 March 2018: €169,192,562.22 Registered office 1, cours Antoine Guichard CS 50306 – 42008 Saint-Étienne Cedex 1, France Phone: +33 (0)4 77 45 31 31 Fax: +33 (0)4 77 45 38 38 The Company is registered in Saint-Étienne Cedex 2 under no. 554 501 171 RCS. Paris office 148, rue de l’Université 75007 Paris, France Phone: +33 (0)1 53 65 25 00 PUBLISHED BY Group External Communications Department Design and creation: with L’éclaireur Layout Photo credits: Printed by: Éric Bury | Shaman CA Content / Cédric Daya / Yohanne Lamoulère, Compagnie LR / Simon Lourié / Jean-Philippe Moulet / Alain Potignon / Internal Photo Library A Print - Paris Printed on 100% recycled paper at an Imprim’Vert-certified print shop. 124 125 

Continue reading text version or see original annual report in PDF format above