HALF-YEAR RESULTS 2020 - Auchan Holding · S1 2018 S1 2019 S1 2020 + 0.3 pt 23.4 % 22.1 % 23.1 % + 1.0 pt Further increase in the gross sales margin thanks to ... company more agile

HALF-YEAR RESULTS

28 August 2020

2020

Half-year results 2020

THIS PRESENTATION CONTAINS FORECASTING INFORMATION

This information, which expresses objectives established on the basis of the current assessments and estimates of Auchan Holding’s general management, remains subject to numerous factors and uncertainties, which could lead to the observed figures differing significantly from those presented as a forecast. Auchan Holding makes no commitment to update or revise the forecasting information presented here.

2

AUCHAN RETAIL

1

Ceetrus

2 Appendices

4 Consolidated financial

results

3 C

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Half-year results 2020 4

Despite the health crisis, results show strong growth driven by the early effects of the Renaissance initiative

Continued growth in financial results, which are in line with targets

despite the current context

The Renaissance initiative, promoting

operational excellence, is delivering significant

results with a sustained implementation rate in all

countries Auchan Retail remained

true to its mission towards the inhabitants of all countries in which it operates during Covid-19

The health crisis has confirmed the relevance

of Auchan 2022 corporate plan


Revenue is up on a like-for-like basis (excluding fuel and foreign exchange)

+ 0.8 % + 0.5 % + 1.3 % - 2.5 % - 1.8 % - 1.1 % - 0.7 %

INCOME BEFORE TAX

H1 2019

€22,657m

COMPARABLE STORES CHANGES IN STORE SCOPE

INCOME BEFORE TAX

H1 2020 ORGANIC

FUEL IMPACT INCOME BEFORE TAX H1 2020 EXCLUDING

EXCHANGE RATE IMPACT

INCOME H1 2020

EXCHANGE RATE IMPACT AND

OTHER IMPACTS

€22,253m

€22,951m

€22,413m

Like-for-like income growth in H1:

• Good revenue momentum in Q1 • An impact of the COVID-19 pandemic on Q2 income, with: Depending on the level of lockdown, a significant fall in hypermarket traffic. This was partly

offset by the increase in the average basket Very strong growth in e-commerce (up to +85% of income in April) and convenience A post-lockdown rebound in some countries, particularly for non-food products (Spain,

Portugal) A loss of income on shopping malls rents collected mainly in China (-€62m at end-June)

An adverse impact on income from the sale of fuel and the currency effect:

• Fall in fuel sales (-€573m at end-June) • Exchange rate impact mainly related to falls in the ruble, yuan,

zloty and leu.

Change in revenue before tax (in €m)


Marked income growth, excluding Russia

Like-for-like change in income by geographic region (in €m)

INCOME H1 2019

€22,657m

€22,813m

FRANCE SOUTHERN EUROPE

ASIA AFRICA INCOME H1 2020

€22,253m

FUEL IMPACTS, EXCHANGE

RATE IMPACTS, AND OTHERS

CENTRAL AND EASTERN EUROPE

+58m + 0.8 %

+€105m +4.9%

- €162m - 3.9 %

+€160m +2.3 %

- €3m - 6 %

- €404m - 1.8 %

- €561m - 2.4 %

Distribution of income (in €m) by region (at current exchange rates)

• Income growth on a like-for-like basis in 9 Auchan Retail countries • French growth is driven by e-commerce • Very strong growth in Southern Europe, with marked increases in Spain and Portugal • Central and Eastern Europe were hurt by the sharp fall in Russian income, partially offset by the increase in other

countries in the region • Sustained income growth in Asia

22,253 €m

France €8,043m 36%

Southern Europe €2,707m 12%

Central and Eastern Europe

€4,121m 19%

Asia €7,307m

33%

Africa €74m

< 1 %


Recovery of the model thanks to a sharp reduction in costs

Falling operating expenses Change in the sales margin

• Significant effects of the Renaissance initiative: €184m of recurring savings made in H1 2020

• Significant synergies achieved by reunifying the back offices of Sun Art's commercial brands (Auchan and RT-Mart) in China

• A marked improvement in productivity, with high level of

absenteeism (France, Spain) offset by employee versatility

• In this context, a balancing out of the impact of the health crisis: additional expenses for employee protection were offset by legal provisions in some countries (reduction of social security contributions, etc.)

S1 2018 S1 2019 S1 2020

+ 0.3 pt

23.4%

22.1% 23.1%

+ 1.0 pt

Further increase in the gross sales margin thanks to actions undertaken, tempered by a less favourable product mix during the COVID-19 pandemic


Continued EBITDA growth: +15% in H1

Change in EBITDA (in millions of euros; change in %; at current exchange rates)

EBITDA H1 2019

€1,086m

FRANCE SOUTHERN EUROPE

CENTRAL AND EASTERN EUROPE

ASIA AFRICA EBITDA H1 2020

€1,248m

+ 79 % + 19 %

+ 11 %

+ 5 % + 39 %

+ €162m

• All geographical areas are experiencing growth, as in 2019

• All countries saw an increase in their EBITDA, with the exception of Russia

• Growth rates are particularly high in France, Hungary, Poland, Ukraine and Luxembourg

• The EBITDA margin increased by 0.8 points compared to H1 2019

€

3,2% 3,1%

2,5%

3,4%

4,2%

H1 2016 H1 2017 H1 2018 H1 2019 H1 2020

Operations in Italy and Vietnam were included in 2016, 2017 and 2018

4,8%

5,6%

H1 2019 H1 2020

+ 0.8 pt

EBITDA margin rate IFRS 16

Change in the EBITDA margin

EBITDA margin rate pre-IFRS 16


Lessons learned from Covid-19 for Auchan Retail

Reaffirmation of our profession's purpose

• Our mission to feeding local people has been enhanced • The responsibility of the company and its employees has been acknowledged

2022 goals fully vindicated

• The Renaissance initiative makes the company more agile in a volatile context

• All areas of the Auchan 2022 business plan were shown to be correct. They meet the challenges presented by the crisis

Changes in consumption patterns have accelerated

• Food e-commerce is becoming essential • Offers must be more locally focussed and responsible • Price is still a key criterion

The company has demonstrated its agility

• Ongoing adaptation as the situation evolves > Intra-store and inter-format employee versatility within living areas > Accelerated decision-making, adapting to purchasing behaviours

• A strong contribution to solidarity on the ground > Donations (equipment, masks, food, financing), > Support for caregivers and vulnerable populations (dedicated remote click & collect, specific openings, etc.)

10

AUCHAN 2022 Reorienting the company towards sustainable development towards sustainable growth

RENAISSANCE Making the company more agile

Enhancing operational excellence


The Renaissance initiative delivers significant results with a sustained pace of implementation in all countries, despite the current context

152 projects promoting operational excellence Sustained implementation in all countries

Handling of loss-making operations • Ex : Business model of some departments in stores

Product margin and reduced inventory shrinkage • Streamlining of ranges, arrangement of products in the aisles, new sales

channels to limit losses (anti-waste shop-in-shops), • Significant results, as in Poland (inventory shrinkage reduced by 30%)

Operations and store expenses • Renegotiation of framework agreements (maintenance) • Improving store energy efficiency • Optimisation of collection pathways • Lease renegotiation, with significant savings in Poland, Taiwan and Spain

Supply chain • Study underway to set out a more efficient supply-chain organisation in

light of the new challenges highlighted during the health crisis.

Back office efficiency • More agile decision-making

# ON-SITE HANDLING OF LOSS-MAKING OPERATIONS

PRODUCT MARGIN AND

REDUCED INVENTORY SHRINKAGE

OPERATIONS AND STORE EXPENSES

OPTIMISATION OF THE GOODS SUPPLY CHAIN

BACK OFFICE EFFICIENCY

28

20

59

14

31

152

5%

60%

35%

finalised in progressto be launched

Project statuses

Countries making the greatest contribution to date (excluding disposals in Italy and Vietnam)

60% France

16% Russia

7% Poland

7% Spain


A savings trajectory in line with 2022 targets

Savings made under the Renaissance initiative (€m) Change in the EBITDA margin (Pre-IFRS 16)

• At end-June 2020, the Renaissance initiative delivered €423 million in recurring savings, including €184 million in H1 2020.

• 500 internal contributors apply a single, precise methodology, allowing for a sustained pace of implementation before and during the health crisis

239

184

423

1,100

2019 H1 2020 TOTAL RENAISSANCE SAVINGS END-

H1 2020

2022

38% of target in 18

months

2,5%

3,0% 3,4%

4,0% 4,2%

6.0%

H1 2018 2018 H1 2019 2019 H1 2020

5.6 % 7.5 % 4.8 % 5.3 % EBITDA margin Post-IFRS 16

2022

• 6.0% EBITDA margin (pre-IFRS 16; i.e. 7.5% post-IFRS 16) • €1,100m of net recurring savings

End-2022 targets are confirmed despite the health crisis

(1) Operations in Italy and Vietnam are included in 2018


Rollout of the Auchan 2022 business plan accelerated due to the health crisis

Providing good, healthy and local products through the selection and design of a unique, fair and responsible offer

Medium-term progress made Acceleration opportunities linked to the crisis

1

Continued development of responsible agricultural chains in France (+17), Spain (+24), Portugal (+6), Russia (+7) and Ukraine (+2). Opening of the first chain in Taiwan (eggs)

Improvement of supplier brand selection in France (reduction of up to 20%), in Russia (3,000 products are being removed) and in Ukraine (1,000 non-food products removed).

Further work on exclusive products • Increase in local private label products (France, Spain, Ukraine, Russia, Poland) • Continued development of international private label ranges

Commitment to better customer education • Rollout of the "Nutri-Score" label in Spain and Portugal • Partnership with the Pasteur Institute in Lille with the “Eating better is easy” ("Mieux manger,

c'est facile") programme • Launch of the "La Note Globale" label in France

• Express supplier listing of local producers (France, Spain, Portugal, etc.)

• Extension of our close ties with the agricultural world (France, Spain, Portugal, Ukraine, Russia, Romania): Sales of local products up 50% in Portugal

• Outperformance of sales of organic private label products


The roll out of the Auchan 2022 business plan accelerated with the health crisis

Creator of connections and experiences that improve local peoples' quality of life. 2 Medium-term progress made

• Increased ability to prepare and distribute e-commerce orders

• Launch of the first click & collect and home delivery service in Senegal

• Click & collect rolled out in France, Spain and Poland

• New agile solutions: • ready-to-buy baskets (Poland, Romania), • Whatsapp-assisted sales (Spain)

Digital revenues for H1 2020 reached 11% of total revenue (+3.7pts in 1 year)

Development of the new digital local services • 100% of countries offer local digital services • China: 50 million unique O2O user accounts • Signing of partnerships for express home delivery or with market places

Strategic partnership with Glovo launched in 4 countries: Portugal, Spain, Poland and Ukraine

Russia Poland Ukraine France Luxembourg Taiwan Romania

Spain

Implementation of in-stores partnership with experts: • Decathlon: offer in 31 stores (Ukraine, France, Portugal, Spain,

Taiwan) • Patatam (expert in second-life textiles): in 30 stores in France as at

end-August 2020

Acceleration opportunities linked to the crisis

Food e-commerce rose sharply

April 2020: France (+72 %), Spain (x 5.5), Portugal (x3.5), Ukraine (x3.5), Poland (x2), Hungary (x2), Russia (+90 %), Luxembourg (+69 %)...


• Donations (masks, food, loyalty points, equipment, etc.)

• Access reserved in stores or at click & collect outlets, ease of delivery, remote click & collect

• Charitable operation

• Creation of field hospitals in Romania with Leroy Merlin and Ceetrus

• Mobilisation of Auchan Retail’s foundations: projects supported in 9 countries to support young people and textile workers

15

The CSR approach: a lever for the crisis

Support for caregivers and the most vulnerable people

• Agreement with Voltalia, Boralex and Eurowatt to develop the green electricity supply (solar and wind) in 100% of its French sites by 2030. Strong growth in Spain and Portugal via the purchase of guaranteed certificates of origin

• Patatam second-life textile shop-in-shops rolled out in France (30 by 30 August 2020)

• Continuation of the contribution to the Fashion Pact: development of a 100% organic textile range

Reducing the carbon footprint

Healthy eating and fight against waste

• Following the signing of the Agreement on Consumption Dates: rollout of anti-waste shelves in all countries and continuation of the Too Good to Go partnership in France, Spain and Portugal

• Rollout of the "Nutri-Score" label in France, Spain and Portugal

Significant improvement in Vigeo rating

• +12 points in 2020 (vs. 2018)


In short

Continued growth in financial results, which are in line with targets despite the current context:

• Revenue up 0.8% on a like-for-like basis

• EBITDA up 15%, thanks in particular to the Renaissance initiative

A period of intense learning for Auchan Retail • A renewed sense of professional purpose

• Changes in consumption patterns have accelerated

• The company has demonstrated its agility

• 2022 goals fully vindicated

The Renaissance initiative, promoting operational excellence, is delivering significant results with a highly sustained implementation rate in all countries

• 152 projects in position to achieve a 6% EBITDA target margin1 by 2022

• €423 million of recurring savings made at end-H1, i.e. 38% of the target

1 2

3

Despite the health crisis, Auchan Retail is delivering strong growth driven by the early effects of the Renaissance initiative and the rollout of Auchan 2022

1 pre IFRS 16

Auchan Retail

1

CEETRUS

2 Appendices


results

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2020 marked by the global health crisis

Enforced closure of many outlets aside from those selling basic necessities • 2 to 2.5 months on average in Europe • more than 90% of the sales area rented by Ceetrus

Essential continuity of service for local people and retailers • 100% of Ceetrus shopping malls open to allow access to shops selling "essential" goods • Requirement to fully reorganise human flows

Strict health measures to keep everybody safe • Compliance with instructions and beyond

Short-term crisis measure to protect teams • Approximately one-month work stoppage on the sites • Teleworking for all assessment work and support roles

A CONSTRAINED H1

LIMITED COMPANY SUPPORT MEASURES

Few mechanisms for short-time working • In France, for 62% of the workforce in FTE

No other mechanisms used • Both in France and abroad • No recourse to the Guaranteed Loan from the French State due to strong cash holdings


When the crisis struck, Ceetrus came into its own

A flurry of test-and-learn initiatives rolled out around the world • Switching functions: a car park becomes a drive-in cinema, first in Romania then in Hungary, Poland,

Portugal and France

• New services: the shared "Aushopping Drive" (click & collect service) > 30 sites at the end of June in France, then Portugal, Italy, Luxembourg and Russia

AGILE INNOVATION FROM THE GROUND UP, NOW MORE THAN EVER

DIALOGUE AND SOLIDARITY WITH THOSE WHO SHARE OUR LIVING SPACES

For merchants • In France: 2 months of rent cancelled (excluding charges) for closed shops; creation of an inter-brand

solidarity fund to help small shops

• Internationally, discussions with lessees to find long-term ways to adapt

For local people, in partnership with associations and the State • Italy: one hospital built in 60 days in Milan, €3m raised in partnership

• France: safe spaces for women victims of domestic violence

• Romania: a temporary hospital set up in partnership with Leroy Merlin and Auchan Retail


Development operations: heightened caution

• Boost for existing sites (“new retail”)

• Co-creation of new neighbourhoods ("new city")

STRATEGIC PRIORITIES UNCHANGED AND REINFORCED BY THE CRISIS

THE RESTART OF ALL SITES AFTER A MONTH OFF

• Spain, "Vision" project - Viala Vigo station

• Italy: MilanNord2, Merlata Mall

• France: Platform 22, Wellice offices, Quadrilatéral des Piscines

• Romania: Coresi in Brasov

CAREFUL DECISIONS TO PROTECT THE COMPANY AND ITS BALANCE SHEET

• 2020 investments revised downwards by around one-third

France, Saint-André-Lez-Lille, Quai 22

Spain, Viala Vigo station

Roumanie, Coresie, Brasov


31% fall in income, directly impacted by Covid-19

The impacts are fully taken into account in income as at 30/06 (Change in income - in € millions)

LIKE-FOR-LIKE (INCL. COVID 19)

EXPANSION / DISPOSAL

H1 2020 BEFORE

EXCHANGE RATE IMPACT

EXCHANCE RATE

IMPACT

H1 INCOME 2019

H1 INCOME 2020

€296.9m -€92.0m -31.0 %

+€2m +0.3 %

€206.6m - 30.4 %

-€1.9m -0.6 %

€204.7m -31.1 %

Net rental income of €154.9 million (-39.6%)


Contracted EBITDA due to a limited reduction in expenses

Change in EBITDA (at current exchange rates)

EBITDA H1 2020

EBITDA H1 2019

€115m

€201m

- €86m - 42.6 %


Net decrease in investments as of H1 2020

Current investments, acquisitions of securities, net of disposals and changes in financial receivables

H1 2020 (including -€2 million in disposals)

H1 2019 (including – €68m in disposals)

€122m

€183m Major investments in France, Luxembourg and Italy. Disposals in France.

Investments in priority projects already launched in Luxembourg, Spain and Russia

-€61m -33 %

Review of 2020 investment programme to secure cash flows


Limited revision of asset market values – similar to our peers

€3,497m €3,380m

31/12/2019 30/06/2020

Net asset value of Investment property

Fair value of Investment property

(w/o transfer rights)

31/12/2019 30/06/2020

€8,264m €7,885m

- 3.3 %

- 4.6 %


The amplification of Ceetrus' momentum, put into perspective

• Support in exiting the crisis, with stimulus plans and boosting traffic:

In Portugal: QR code app and online payments; Too Good to Go partnership for centre restaurants; developing home delivery for non-food customers

Italy: "Ceetrus 4 innovation", open to all, which has produced more than 60 proposals for ideas;

France: The application "Ma boutique en ligne" allows today independent tenants to create a website with an online payment solution;

Spain: "BurGo challenges" to support innovative entrepreneurs looking for opportunities, provision of a fully equipped unit, 6 months of rent and marketing support offered.

A PRIORITY: BUSINESS REGENERATION

• Renewed vision of the city and new retail; diversity of uses and a positive impact commitment

• A mission to accelerate the transformation

• New organisation by country: strengthened teams working as closely as possible with local people

A TEAM MOBILISED TO SET THE STANDARD

Active despite the health crisis: Ceetrus in Portugal

Gradual recovery of traffic

85% in July 2020

Auchan Retail

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Ceetrus

2 Appendices

4 CONSOLIDATED

FINANCIAL RESULTS

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27 % increase in operating profit from continuing operations

In € millions H1 2020 H1 2019 Change at

current exchange

rates

Change at constant

exchange rates

Revenue 22,457 22,954 - 2.2 % - 1.4%

Sales margin 5,403 5,519 - 2.1 % - 1.2 %

Sales margin rate 24.1 % 24.0 % + 0.1 pt

Staff expenses -2,719 -2,876 - 5.5 % - 4.8 %

External expenses (including depreciation and amortisation)

-2,223 -2,279 - 2.5 %

EBITDA 1,362 1,313 3.7 % 4.6 %

EBITDA margin rate 6.1 % 5.7 % + 0.4 pt + 0.4 pt

Income from ongoing operations 461 364 26.7 % 27.9 %

Current operating margin rate 2.1% 1.6% + 0.5 pt + 0.5 pt

Change in the EBITDA margin since 2013 (pre-IFRS 16)

5.0%

4,2% 4.1% 4.1%

4.0%

3.5%

4.3%

4.6%

3,00%

3,50%

4,00%

4,50%

5,00%

H1 2013 H1 2014 H1 2015 H1 2016 H1 2017 H1 2018 H1 2019 H1 2020

Auchan Retail operations in Italy and Vietnam and Oney Bank were included from 2013 to 2018


Other operating income and expenses : -123 million euros

H1 2020 H1 2019

COVID 19 – Employee bonuses (69)

Renaissance initiative and reorganisation costs (71) (22)

Impairment of fixed assets (25) (22)

Other non-recurring income and expenses 42 70

TOTAL (123) 26

Other operating income and expenses (in € millions)

▪ To recognise their commitment, bonuses were granted to employees who remained committed throughout the pandemic

▪ Costs mainly related to the voluntary redundancy plan announced on 14 January 2020 at Auchan Retail

▪ Mainly impairment of fixed assets for Ceetrus

▪ Mainly income from real estate transactions


Very significant rise in normalised net profit: +228 million euros

In € millions H1 2020 H1 2019 Change at current

exchange rates(€m)

Operating profit from continuing operations 461 364 + 97

Other operating income and expenses (123) 26 (149)

Operating profit 338 390 (52)

Net cost of financial debt (36) (30) (6)

Other financial income and expenses (164) (121) (43)

Tax expenses (56) (116) + 60

Share of net (profit) loss of associates 9 1 + 8

Net profit from continuing operations 91 124 (33)

Net profit from assets held for sale and discontinued operations 15 (1,458) + 1,473

Net profit 106 (1,334) + 1,440

Net profit attributable to the Group (77) (1,472) + 1,395

“Normalised” net profit (1) 300 72 + 228

"Normalised" net profit (1) attributable to owners of the parent 115 (50) + 165

1) Excluding net profit from discontinued operations, other operating income and expenses and direct effects related to the pandemic (net of taxes)


Improved net cash flow vs. H1 2019

Change in net financial debt in H1 2020 (in millions of euros)

• Natural debt increases due to seasonality

• However, this increase was very limited thanks to:

• The sharp improvement in the change in Working Capital Requirements (+€545 million vs. H1 2019), mainly translation of work on inventory management • A reduction in current investments as a precautionary measure (-€214m vs. H1 2019)

• €110 million in dividends paid to minority shareholders of Sun Art (Auchan Retail subsidiary in China)

• Auchan Holding's shareholders did not receive any dividends for 2019

3 870 4 175

2019 CAF Var. BFR Opérationsd'investissements

Dividende(Sun Art)

Autres flux(1) S1 202031/12/2019

+€305m

30/06/2020

- €956m +€573m

+€439m +€110m +€139m

1) Of which mainly payment of liabilities related to leases and foreign exchange impact

1 473

1 864

1 523

1 987

1 512

305

S1 2015 S1 2016 S1 2017 S1 2018 S1 2019 S1 2020

Change in cash flow in H1 (in € millions)


Increased liquidity: an important asset in a volatile environment

NEW FINANCIAL RESOURCES TOTAL FINANCIAL RESOURCES

11,595 €m (1)

81% Auchan Holding 14%

Ceetrus

6% Auchan Retail

(1) of which €3,604m in available financing (undrawn)

Successful issue of 2 new financing agreements and the liability management operation

• €1,000m: 04/29/2020 --- 01/29/2026 Type: EMTN Maturity: 5 ¾ years Rate: 2.8750 %

• € 256.5m: 07/06/2020 - maturity 3 years, 5 years and 7 years Type: Schuldschein Average maturity: 3½ years

• €750m: 07/23/2020---07/23/2027 Type: EMTN Maturity: 7 years Rate: 3.25 %

=> redemption of bond issues for €535.4 million: maturing in 2021, 2022 and 2023

Extension of a back-up credit line for €1 billion

• €1,000m: original maturity: June 2021, extended to June 2022, with option to extend to June 2023

At end-July 2020


A well-spread repayment schedule, with a maturity extended to 3.2 years

(in € millions); at 31 July 2020

-

200

400

600

800

1 000

1 200

2020 H2 2021 H1 2021 H2 2022 H1 2022 H2 2023 H1 2023 H2 2024 H1 2024 H2 2025 H1 2025 H2 2026 H1 2026 H2 2027 H1 2027 H2

AH bonds AH bank facilities Ceetrus bank facilities Retail bank facilities Ceetrus bonds SSD

AVERAGE MATURITY 3.2 years


Launch of a €2-billion deleveraging plan by 2022

• Auchan Holding is implementing a €2 billion deleveraging plan (by 2022), with immediate effect, confirming its commitment to

debt reduction

• This will lead notably to the disposal of non-strategic assets with little operational and social impact

• This is in addition to measures already taken by shareholders who had waived the payment of dividends for the 2019 and 2020

financial years

Under this plan, which strengthens debt control measures already undertaken,

Auchan Holding confirms its desire to retain an Investment Grade rating


Conclusion

Auchan Retail’s earnings growth offsets contexctual difficulties

recorded for the real estate business

The work undertaken towards recovery will be carried out in the context of these significant initial

results

Determination to retain an Investment Grade rating with a

€2 billion deleveraging plan by 2022

Auchan Retail

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H1 2020 Income statement - Auchan Holding

In € millions H1 2020 H1 2019 Change at current

exchange rates

Change at constant

exchange rates

Revenue 22,457 22,954 - 2.2 % - 1.4%

Sales costs (17,054) (17,434) - 2.2 % - 1.4%

Sales margin 5,403 5,519 - 2.1 % - 1.2 %

Sales margin rate 24.1% 24.0% + 0.1 pt Staff expenses (2,719) (2,876) - 5.5 % - 4.8 % External expenses (1,353) (1,309) 3.5 % 1.9 % Depreciation, amortisation and impairment (878) (977) - 10.2 % na Other operating income and expenses 10 5 na. na

Operating profit from continuing operations 461 364 26.7 % 27.9 %

Current operating margin rate 2.1% 1.6% + 0.5 pt + 0.5 pt Other operating income and expenses (123) 26 na. na

Operating profit 338 390 - 13.3 % - 12.5 %

Net cost of financial debt (36) (30) 25.5 % 29.7 % Other financial income and expenses (164) (121) 35.7 % 35.4 % Tax expenses (56) (116) - 51.7 % na. Share of net (profit) loss of associates 9 1 na. na.

Net income from continuing operations 91 124 - 26.6 % - 26.4 %

Net profit from assets held for sale and discontinued operations 15 (1,458) na. na.

Net profits 106 (1,334) na. na.

Net profit attributable to the Group (77) (1,472) na. na. Net income attributable to non-controlling interests 183 139 31.7 % 33.6 % EBITDA 1,362 1,313 3.7 % 4.6 % EBITDA margin 6.1% 5.7% + 0.4 pt + 0.4 pt


Consolidated balance sheet as at 30 June 2020 (Assets) – Auchan Holding

ASSETS (in € millions) 30/06/2020 31/12/2019 Change

Goodwill 2,946 3,021 (75)

Other intangible assets 1,027 1,069 (42)

Tangible assets 10,938 11,768 (830)

Investment property 4,959 5,099 (140)

Investments in associates 491 485 6

Other non-current financial assets 592 565 27

Derivative financial instruments (non-current) 123 124 (1)

Deferred tax assets 445 438 7

NON-CURRENT ASSETS 21,521 22,569 (1,048)

Stocks 3,519 4,875 (1,356)

Trade receivables 505 542 (37)

Current tax assets 123 148 (25)

Other current receivables 2,223 1,957 266

Derivatives financial instruments (current) 55 80 (25)

Cash and cash equivalents 3,615 3,674 (59)

Assets classified as held for sale 668 642 26

CURRENT ASSETS 10,708 11,918 (1,210)

TOTAL ASSETS 32,229 34,487 (2,258)


LIABILITIES (in € millions) 30/06/2020 31/12/2019 Change

Share capital 578 578 0

Share premiums 1,914 1,914 0

Reserves and net income attributable to owners of the parent 3,564 3,813 (249)

EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT 6,056 6,305 (249)

Non-controlling interests 3,576 3,548 28

TOTAL EQUITY 9,632 9,853 (221)

Provisions 218 248 (30)

Non-current borrowings and other financial liabilities 6,588 6390 198

Derivative financial instruments (non-current) 27 18 9

Other non-current liabilities 2,672 3,041 (369)

Deferred tax liabilities 407 509 (102)

NON-CURRENT LIABILITIES 9,912 10,206 (294)

Provisions 494 415 79

Current borrowings and other financial liabilities 1,543 1,313 230

Derivative financial instruments (current) 16 29 (13)

Trade payables 5,948 7,572 (1,624)

Current tax liabilities 138 115 23

Other current liabilities 4,518 4,955 (437)

Liabilities classified as held-for-sale 28 28 0

CURRENT LIABILITIES 12,685 14,428 (1,743)

TOTAL LIABILITIES 32,229 34,487 (2,258)

38

Consolidated balance sheet as at 30 June 2020 (Liabilities) – Auchan Holding


Cash flow statement H1 2020 – Auchan Holding

€m H1 2020 H1 2019 Change Consolidated profit (including non-controlling interests) 106 (1,334) 1,440 Share of net profit (loss) of associates (9) (1) (8) Dividends received (non-consolidated investments) (2) (1) (1) Net cost of financial debt and lease interest (1) 143 162 (19) Income tax expenses (including deferred taxes) 59 121 (62) Net depreciation, amortisation and impairment expenses (except those relating to current assets) 972 2,394 (1,422) Capital gains/losses net of tax and negative goodwill 4 (18) 22 Cash flows from operations before net cost of financial debt and tax 1,273 1,323 (50) Income tax paid (174) (175) 1 Interest paid and lease interest (1) (179) (218) 39 Other financial items 36 56 (20) Cash flows from operations before net cost of financial debt and tax(2) 956 987 (31) Change in working capital requirement (573) (1,118) 545 Changes in items relating to the credit activity (29) 29 Net cash from (used in) operating activities 384 (160) 544

Acquisitions of tangible and intangible assets and investment property (418) (660) 242

Proceeds from sales of tangible and intangible assets and investment property 17 73 (56)

Acquisitions of non-consolidated investments including investments in associates (10) (36) 26 Proceeds from investments in non-consolidated companies, including investments in associates 4 4 0 Acquisitions of subsidiaries net of cash acquired (2) 2 Sales of subsidiaries net of cash disposed of (40) 40 Dividends received (non-consolidated investments) 4 4 0 Change in loans and advances granted(3) (36) (238) 202 Net cash from (used in) investing activities (439) (895) 456 Purchase and proceeds from disposal of treasury shares (120) 120 Dividends paid during the financial year (110) (110) 0 Acquisitions and disposals of interests without gain or loss of control (3) (27) 24 Payments of lease liabilities (233) (245) 12 Change in net financial debt 210 1165 (955) Net cash flow from financing activities (136) 663 (799) Impact of changes in foreign exchange rates (4) 73 (34) 107 Change in net cash position (118) (426) 308 Opening net cash position 3,569 2,987 582 Closing net cash position 3,451 2,561 890 CHANGE IN NET CASH POSITION (118) (426) 308


Your contacts

PRESS Marie VANOYE + 33 6 64 49 78 06 [email protected]

INVESTORS François-Xavier GIMONNET + 33 6 68 07 56 70 [email protected]

Documents

HALF-YEAR RESULTS 2020 - Auchan Holding · S1 2018 S1 2019 S1 2020 + 0.3 pt 23.4 % 22.1 % 23.1 % + 1.0 pt Further increase in the gross sales margin thanks to ... company more agile