INVESTOR

PRESENTATION
Half year 2023

1
INTRODUCTION
1 MACROECONOMIC ENVIRONMENT AND MARKET SHARE
1. – Macro Economic Indicators
2. – Market Share
3. – Market Share by Key Players

2 REVIEW OF MAJOR EVENTS IN THE FIRST HALF

1. – Franchise Program
2. – Network Expansion
3. – Bond Issuance
4. – Purchasing Power Support
5. – Loyalty Program
6. – Our CSR Achievements

3 H1 2023 RESULTS
1. - Key Indicators
2. - Income Statement
3. - Key Performance Indicators
4. - Cash and Balance Sheet Items

OUTLOOK
 INTRODUCTION

3
 INTRODUCTION
• LabelVie Group continues its anti-inflation policy aimed at supporting the
purchasing power of its customers and retaining them, which has resulted in
increased sales volumes and footfall
• Strengthening of this approach with the launch of the Group’s loyalty program
«Club Carrefour» and the franchise program

• Continued investment and value creation level, in a complex economic context:

Capex of MAD 584m in H1 2023

• Opening of 6 new stores

• Continued investment in the Group’s digital transformation.

• Ongoing CSR actions: “Filière qualité LabelVie”, fund donation for Al Haouz
earthquake, “Label Solidaire”, and employment promotion initiatives...

4
MACROECONOMIC ENVIRONMENT AND
MARKET SHARE
 1- Macroeconomic Environment
1.1 – Economic Situation in 2023

GDP ( Gross Domestic Product ) Inflation Consumer Price Index (CPI)

The Morocco experiences economic In Morocco... inflation persists The Consumer Price Index (CPI) for the
growth in the first half of 2 0 2 3 month of June 2023
In the first half of 2023, the food component,
the most consumed products by Moroccans, Compared to the same month of the
During the first half of 2023, the HCP (High witnessed the most significant inflation, with a previous year, the Consumer Price Index
Commission for Planning) reveals that eco-
historical increase of +24.3% over the period recorded an increase of 5.5% in June 2023,
nomic activity in Morocco has recorded
from February 2022 to May 2023, more than driven by a 12.7% increase in the index of
a growth of 3%, compared to +0.3% du-
twice the general progression of the CPI food products and a 0.6% increase in non-
ring the same period of the previous year.
(Consumer Price Index) which evolved over food products. Among non-food products,
Agricultural value added has rebounded
by 2.1%, and other sectors have increased the same period by 11.2%. And three times the variations range from a decrease of
by 3.1%. higher than the average inflation over the same 5.6% for «Transport» to an increase of 6.0%
period. for «Restaurants and hotels.»
The growth of the national economy is ex-
pected to reach 3.3% in 2023. This growth The outlook for 2023 suggests an average rate
would be primarily supported by primary of 6.2%according to the HCP, before decreasing
and tertiary activities. to 3.4% in 2024, still above pre-pandemic
levels.
Evolution of the national economic growth
in % The inflation rate progression in %
Expected Expected

2020 2021 2022 2023 2020 2021 2022 2023

-6,3 2021
7,9 2022
1,3 2023
3,3 0,7 2021
1,4 2022
6,6 2023
6,2
*Source HCP *Source HCP

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7
 1- Macroeconomic Environment
1.3 – Market Shares by major players in the retail sector

Au 31/12/2022 Au 3 0 / 0 6 / 2 0 2 3
Retail brands Category Number Sales Market Number Sales Market
of stores area (m 2 ) share (m 2 ) of stores area (m 2 ) share (m 2 )

Marjane Holding 111 327 800 43,25% 115 332 050 42,83%

Marjane Hypermarkets 41 256 288 33,81% 41 256 288 33,06%

Acima/Marjane Market Supermarkets 66 70 712 9,33% 70 74 962 9,67%

Otop Supermarkets 4 800 0,11% 4 800 0,10%

Aswak essalam Hypermarket 15 56 600 7,47% 15 56 600 7,30%

s
BIM Supermarkets 610 122 000 16,10% 659 131 800 17,00%

Super U Express Supermarkets 4 3985 0,53% 4 3 985 0,51%

LabelVie Group 155 247 575 32,49% 161 250 814 32,35%

Atacadao Hypercash 13 65 714 8,62% 13 65 714 8,48%

Carrefour Hypermarkets 12 65 900 8,65% 12 65 900 8,50%

Carrefour Market Supermarkets 115 113 717 14,82% 121 116 956 15,09%

Supeco Supermarkets 15 2 244 0,39% 15 2 244 0,29%

Total 896 761 9 6 0 100% 954 775 2 4 9 100%

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REVIEW OF KEY EVENTS
IN THE 1 HALF 2023
ST
 2– Review of key events in the first half year
Key events 2023
H1-2023: A Semester Filled with Events and Challenges

Network expansion SUPPORT FOR PURCHASING POWER

Franchise launch :
Under the Carrefour Express Brand

06 store openings
161 total number of stores Anti inflation program

Bond Issuance Loyalty Program

MAD1bn Club Carrefour

Our CSR Achievements

The first franchise program in the

modern distribution sector in
Morocco Citizen Company

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 FRANCHISE PROGRAM :
CARREFOUR PARTNER PROGRAM BY
LABELVIE

1
1
 2– Review of key events in the first half year
2.1 - Franchise : Carrefour Partner Program

The Franchise... a new growth lever for the Group.

Goals
• Faster expansion of the «Carrefour Express» network across the Moroccan territory
• Improved profitability of existing stores by transitioning to a franchise model

LabelVie Group Commitments

Ensure a successful Deliver the store Guarantee quality Provide and maintain
concept and effective (concept, product, service, ...) operational tools
communication plan

Franchisee Commitments

Respect the concept Follow the annual Ensure the integrity of the Non-competition
communication plan Carrefour Express image obligation

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 NETWORK EXPANSION

1
3
 2– Review of key events in the first half year
2.2 - SUMMARY OF STORE OPENINGS

• Opening of 6 additional stores during H1 2023

• 3 239m2 square meters opened in H1 2023

Group Brands
Number of stores 2022 115 15 12 13 155

m 2 of sales 113.717 2.244 65.900 65.714 247.575

% of Group Total 46% 1% 27% 27% 100%

Openings 6 0 0 0 6

Square meters open 3.239 0 0 0 3.239

Closing - - - - -

Squares meters closed - - - - -

Point of sale H1 - 2023 121 15 12 13 161

m 2 of sales 116.956 2.244 65.900 65.714 250.814

% of Group Total 47% 1% 26% 26% 100%

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 2– Review of key events in the first half year
NEW STORE OPENINGS – DETAILED INFORMATION

Opening of 06 Carrefour Market stores, bringing the total number to 121stores by the end of the
first half of 2023

MARRAKECH – IZDIHAR RABAT – HASSAN CASABLANCA – BERNOUSSI

Area : 4 7 0 m 2 Area : 4 4 0 m 2 Area : 3 5 0 m 2

investment : 5,5 Mdhs investment : 5,8 Mdhs investment : 3,6 Mdhs
Employees : 2 0 employees Employees : 19 employees Employees :12 employees

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 2– Review of key events in the first half year
NEW STORE OPENINGS – DETAILED INFORMATION

CASABLANCA – VILLE VERTE CASABLANCA – HAD SOUALEM MARRAKECH – QUARTIER IZDIHAR

Area : 6 4 8 m 2 Area : 768 m 2 Area : 563 m 2

investment : 12,3 Mdhs investment : 9,1 Mdhs investment : 9,1 Mdhs
Employees : 55 employees Employees : 4 5 employees Employees : 4 8 employees

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 BOND ISSUANCE

1
7
 2– Review of key events in the first half year
2.3 - Bond Issuance: Private Placement

On March 16, 2023, Label’Vie Group SA issued a bond operation with the following terms:

• Amount: MAD 1,000m

• The bond is structured into three tranches:

• A: In fine (bullet payment) over 5 years at a variable interest rate
• B: In fine over 5 years at a fixed interest rate
• C: Amortized over 7 years at a variable interest rate

• Subscriptions achieved at an average rate of 4,50%

The purpose of the operation is to diversify the Group’s sources of financing while optimizing costs
in a context marked by a rise in interest rates.

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 SUPPORT FOR PURCHASING POWER

1
9
 2– Review of key events in the first half year
2.4 - Margin Investment

5 major actions initiated by LabelVie in support of purchasing power.

In a context of increasingly pronounced inflation, the Group continues to strengthen its anti-inflation
commercial strategy by significant margin investments aimed at supporting consumer
purchasing power.

• Investment in pricing and promotion, particularly in the fresh products

• Investment in inventory and capacity increase of the Skhirat distribution center
• Review of price indices
• Strengthening supplier negotiations to delay the inflation impact
• Support of vulnerable customers through Atacadao segment

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 LOYALTY PROGRAM

2
1
 2– Review of key events in the first half year
2.5 - Loyalty Program

Loyalty Program “Club Carrefour”

LabelVie Group launched the «Club Carrefour», it’s first

loyalty program, fully digital, based on a reward program
at each checkout

Test Rollout in March 2023

Since September, all stores offer this service

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 DIGITAL TRANSFORMATION LABEL FACTORY

2
3
 2– Review of key events in the first half year
2.6 - DIGITAL TRANSFORMATION: KEY FIGURES

Continuation of Digital Factory projects, a dynamic approach with quarterly reviews of impacts and
budgets, while maintaining a vigilant approach in considering impacts.

130 employees Frameworks Agiles 343 Sprints

40% Business SCRUM & SCRUMBAN
50% Tech
10% Steering- Cockpit

17 Squads + Agile training programs

Autonomous and + 5 Framework training programs :
multidisciplinary teams • Being & Doing Agile
• Management 3.0
• Change Management

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 OUR CSR ACHIEVEMENTS

2
5
 2– Review of key events in the first half year
2.7 - Our CSR Achievements

Filière Qualité LabelVie

In response to the quality, traceability, and transparency
requirements expressed by customers, LabelVie Group launched
the «Filière Qualité LabelVie» brand: a quality label dedicated to
«healthy & responsible eating»
«Filière Qualité LabelVie» is currently being implemented in two
departments : Butchery (meat) and Fruits & Vegetables.
“Filière Qualité LabelVie” …Some details for the “Butchery”

• A guarantee of traceability and quality.

• Breeding conducted in accordance with highest quality
standards.
• Several partners integrated into the quality chain approach.
• Significant increase in sales in the department.

With the introduction of the «Filière Qualité LabelVie» brand, the

Group reaffirms its commitment as a responsible and engaged
company, attentive to the needs of consumers.
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 2– Review of key events in the first half year
2.7 - Our CSR Achievements

Al Haouz Earthquake: LabelVie Group donates M A D 3 0 m to the special fund.

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 2– Review of key events in the first half year
2.7 - Our CSR Achievements

Label Solidaire

LabelVie Group launched «LabelSolidaire,» a citizen initiative led with

the involvement of volunteer employees who were mobilized for the
preparation and distribution of food baskets.

+ 6 0 0 0 essential food products were distributed to families in isolated

villages in the Al Haouz region.

A total of 3 0 hours of volunteer work were dedicated to this

initiative.

In addition to the food baskets, the Group’s employees participated

in the preparation and distribution of Iftar meals every Thursday
during the holy month of Ramadan in support of the less fortunate
population, in partnership with a local Association.

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 2– Review of key events in the first half year
2.7 - Our CSR Achievements employment promotion

Signing of Agreement: Employment Support Bonus

LabelVie Group demonstrates its commitment to

sustainable employment in Morocco by signing a
tripartite agreement between the MIEPEEC (Ministry
of Industry, Investment, Trade and Digital Economy),
LabelVie Group, and ANAPEC (National Agency for
the Promotion of Employment and Skills).

This agreement aims to promote employability

on a national scale and provide opportunities for
professional integration by committing to create
2 . 5 0 0 jobs over the next three years, with a particular
focus on recent graduates facing challenges in
entering the job market and unskilled young
individuals.

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Consolidated Financial Statements H1-2023
 3– Consolidated Financial Statements for 2023
3.1 – key indicators

REVENUE EBITDA NET INCOME CAPEX

AND NET MARGIN
7.533,0 559,1 228,1 585,0
224,1
504,5 520,0
6.201,2

+21% 4,9%
+10,8% +2% +13%
4,0%

4,4% 3,4%

2022 2023 2022 2023 2022 2023 2022 2023

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 3 – Consolidated Financial Statements for 2023
3.2 – H1 2023 Income Statatement

Historical H1-2022 H1-2023 Change Growth rate The consolidated EBITDA shows an increase of +11%,
Sales of goods
reaching MAD 560m, benefiting from the rise in
Back Margin
business volumes:
Revenue • Revenue Increase: A +21% increase in revenue primarily
Direct margin driven by a significant increase in footfall (+19.3%),
Gross margin
attributed to the anti-inflation measures.
• Direct Margin Growth: A +11% increase in direct margin
Total operating expenses in value, with a slight deterioration in the margin rate of
-1.05 points. This is explained by continued investment
EBITDA
efforts in pricing to support consumer purchasing power.
Depreciation • Gross Margin Improvement: A +16% improvement in
gross margin, with a notable +22% increase in in back
margin offset by a -1 point decrease impacted by the
EBIT

Financial result direct margin.

• Operating Expenses: Operating expenses increased by
Operating result
+20%, with a 0.2-point reduction in the expense ratio.
Non-operating result • Financial Result: A -14% decrease in the financial result
Profit before taxes
compared to 2022, primarily due to the non-realization
of cash-out on Aradei shares in H1-2023 (MAD-16.2m).
Income taxes
The net income stands at MAD 228.1m, representing a
Net results
+2% increase.

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33
 3 – Consolidated Financial Statements for H1 2023
3.3 – Key Performance Indicators: Margins

Stable margin ratios despite an aggressive commercial policy.

Margin evolution in MAD Margin evolution as a % of sales

1 pts
16%
1 482 23% 22%

1 276
1 pts
22%
10%
730 753 12% 11% 11% 11%

660
616

Direct Margin Back Margin Gross Margin Direct Margin Back Margin Gross Margin

H1 2022 H1 2023 H1 2022 H1 2023

The direct margin-to-sales ratio decreased by 100 basis points, primarily reflecting the aggressive
commercial strategy aimed at supporting purchasing power.

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 3 – Consolidated Financial Statements for H1 2023
3.3 - Key Performance Indicators - Earnings Before Interest and Taxes (EBITDA)

EBITDA increased by +11%.

EBITDA evolution as a %
EBITDA evolution in MAD m of sales

11% 0,83 pts

559
9,03 %
8,20 %
505

H1 2022 H1 2023 H1 2022 H1 2023

EBITDA experienced a growth of +11%. This increase can be attributed to:

• Sustained growth in sales volumes.
• Enhanced control over the Group’s operating expenses, with an improved ratio of 0.2 percentage
points, despite an inflationary environment.

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 3 – Consolidated Financial Statements for H1 2023
3.3 - Key Performance Indicators - Net Income

A net income increase of +2%, reflecting the Group’s resilience in an uncertain environment.

Evolution of net results in MDH Net results evolution as a % of sales

2% 0,65 pts
228

224 4,01%

3,36%

Net Result Net Result

H1 2022 H1 2023 H1 2022 H1 2023

The net income has experienced a 2% increase. This growth is attributed to:
• The Group’s resilience and its adaptability on the commercial front.
• Effective cost control measures in a disrupted environment.

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 3 – Consolidated Financial Statements for 2023
3.4 – Cash and Balance Sheet Items: Actual vs. Historical

Financial Indicators
2022 30/06/2023 Evolution
Increase in Cash Position of MAD+828m
compared to its 2022 level, primarily
Amount days Amount days Amount days

WC
explained by the following factors:
Equity
Net Income Increase in Working Capital of MAD+767.7 m.
Dividends
Capital Increase 0 Rise in financing debts by MAD 1.108m,
Equity
mainly due to the issuance of a bond of
Debt
New Debt: Commercial Mortgages (CMTs) Dividends MAD 1bn in Q1-2023.
New Debt: Bonds
Increase in net investments of MAD 327m.
Reimbursments
Bank loans reimbursments A decrease in the WCR of MAD-40m (-4
bonds reimbursments
days) primarily due to the increase in
Long-term Liabilities
Net Debt Ratio
inventory levels of raw materials and
FIXED ASSETS consumables by MAD-126m, partially
Net Investments from Disposals
offset by the accounts receivables by MAD
Depreciation
WCR
86m.
Inventory
Accounts Receivable/Accounts Payable

Real estate inventory

OTHER SHORT-TERM ASSETS

CASH & cash equivalent

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 OUTLOOK

38
 Outlook 2023

Continuation of the Development Plan: Continuation of Digital Transformation:

• LabelVie Group intends to uphold its accelerated LabelVie Group intends to sustain its digital
development program by opening 25 stores transformation efforts aimed at enhancing
before the end of 2023. business performance and customer service,
notably through the reinforcement of its
• LabelVie is committed to furthering the
e-commerce endeavors.
expansion of its franchise under the Carrefour
Express segment. This initiative aims to Continuation of Supporting Purchasing
expand its store network and increase its Power:
market share. Additionally, this franchise
model contributes to strengthening the LabelVie Group remains committed to
Group’s socio-economic impact by promoting pursuing its growth while maintaining strong
investment and job creation in Morocco. financial monitoring and fully embracing
its social responsibility.

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