EX-99.(C)(8) 2 s001395x3_ex99c8.htm EXHIBIT (C)(8)

Exhibit (c)(8)

 

STRICTLY CONFIDENTIAL DRAFT PROJECT DELPHES VALUATION REPORT 23 March 2016 Project Delphes CORPORATE & INSTITUTIONAL BANKING STRICTLY CONFIDENTIAL

 

 
 

 

Executive summary DRAFT 2 Valuation assumptions and preliminary results Information and key assumptions retained for valuation BNP Paribas has relied on the information provided by the management and, in particular, the business plan for the period 2016-2018 of Nova and Cdiscount presented to the Board This valuation is based on 2015 preliminary accounts (unaudited), which are being adjusted for Brazil fraud findings by legal and audit consultants (such adjustments – as of 21 March 2016 – are taken into account in this valuation exercise) Potential additional adjustments in relation to Brazil fraud findings could impact 2015 final accounts (audited) compared to preliminary ones but do not appear significant as of today (and will be one of the merger agreement negotiation topic) Moreover potential adjustments on historical financial statements before 2015 do not impact valuation exercise as free cash flow starts in 2016 Our assessment is based on the data for the period ending 31 December 2015 and takes into account Current Trading situation post this date (business plan assumption confirmed by the management on Current trading basis) €5m impact of the Class Action lawsuit filed in January 2016 against Cnova has been taken into consideration at this stage based on available information and our better estimates. Further risk assessment from the management / legal counsel will be required later on Valuation date of each business is 31 December 2015, with EUR/BRL exchange rate, where applicable, as of 18 March 2016 (1-month average) Current holding costs at Cnova level are assumed to remain in place post separation with Nova and take on significant reduction: from c.€15.4m in 2016, including exceptional items, to €6.9m from 2017 onwards. Stand-alone business plan for Nova does not assume any holding costs or management fees Preliminary Valuation results (based on DCF valuation) The central equity value derived for Nova stands at €345m, before any holding costs or synergies (Enterprise value stands at €359m considering intra-group debt to Cnova is fully capitalized) The central equity value derived for Cdiscount, including International operations, stands at €980m, before any holding costs Implied value of Cnova, taking into account holding costs, amounts for €1,252m (i.e €2.84/share and US$3.14/share @ EUR USD FX of 0.91 – 1-month average as of 18/03/2016) Total value of potential synergies expected from combination of Nova with Via Varejo is estimated at €117m 1 2 Project Delphes - 23 March 2016

 

 
 

 

DRAFT 345 1,252 980 (68) Nova Cdiscount Holding costs Cnova Executive summary 3 Based on DCF valuation Project Delphes - 23 March 2016 MIN MID-POINT MAX Value of the 22% held by VV in CNOVA to Newco (260) (275) (291) Nova transferred before synergies 328 345 362 Estimated cash compensation before synergies sharing 67 69 71 Synergies (subject to negotiatio n with VV) - 29 58 Estimated cash compensation after synergies sharing (2) 67 99 130 Estimated Equity Value (€m; middle point, excluding synergies) Detailed estimated Equity Value (€m) Estimated cash compensation (€m) 22% VV stake in Cnova Max €58m synergies for Nova Nova €58m 50% NewCo €58m 50% Note: (1) Includes €5m costs related to Class action filed in the US in Cnova EvEq bridge; (2) before any capital gain tax or other applicable tax 275 NewCo (mid-point) Synergies (for NOVA) (%) (€m) MIN (Mid-point -5%) 328 931 (72) 1,182 260 0% - MID-POINT 345 980 (68) 1,252 275 117 25% 29 MAX (Mid-point +5%) 362 1,029 (65) 1,322 291 50% 58 (€m ) NOVA Synergies (total) CNOVA NEWCO Holding (1) costs CDISCOUNT (incl. Intl')

 

 
 

 

DRAFT Project Delphes - 23 March 2016 Transaction structure: Merger of Nova into a Newco held by VV, cash tender offer by CGP on CN and swap of CN shares in Newco for VV shares in CN + cash payment from VV to CN (1/2) 4 Exito GPA Klein Free float VV Cnova Cdiscount Nova Free float 18.8% 43.3% Free float 58.7% 26.2% 22.0% 43.3% 27.3% 29.3% 8.5% 99.8% 100.0% CGP 54.8% 22.5% 62.6% 17.9% 19.5% 50.0% 50.0% 0.1% Step 1: VV to transfer its 22% stake in Cnova to a Newco Step 2: Merger of Nova into Newco Exito GPA Klein Free float VV Cnova Cdiscount Free float 18.8% 43.3% Free float 58.7% 26.2% [ ]% [ ]% [ ]% 8.5% 99.8% CGP 54.8% 50.0% 22.5% 50.0% 0.1% [ ]% Casino listed subsidiary Casino private subsidiary X% X% Economic interest Voting rights NEWCO NEWCO / NOVA [Cash] [Before merger: Cnova to capitalize its loan to Nova]

 

 
 

 

DRAFT Project Delphes - 23 March 2016 Transaction structure: Merger of Nova into a Newco held by VV, cash tender offer by CGP on CN and swap of CN shares in Newco for VV shares in CN + cash payment from VV to CN (2/2) 5 Casino listed subsidiary Casino private subsidiary X% X% Economic interest Voting rights Step 3: Swap of CN shares held by Newco for Newco shares held by CN [+ additional cash payment by Newco to CN to purchase the remaining CN stake in Newco] Exito GPA Klein Free float VV Cnova Cdiscount Free float 18.8% 43.3% Free float 58.7% 26.2% [ ]% [ ]% [ ]% 8.5% 99.8% CGP 54.8% 50.0% 22.5% 50.0% 0.1% [ ]% NEWCO / NOVA [Cash payment] Step 4: Cash tender offer by CGP on CN shares Exito GPA Klein Free float VV Cnova Cdiscount 18.8% Free float 58.7% 26.2% 22.0% [ ]% [ ]% [ ]% 99.8% CGP 54.8% 50.0% 22.5% 50.0% 0.1% [ ]% NEWCO / NOVA Free float [ ]% [ ]%

 

 
 

 

Transaction process update DRAFT 6 The transaction agreement would have to include adjustment mechanisms in relation with uncertainties that Cnova is currently facing As stated in the previous slides, current valuation estimates may be impacted by Potential additional adjustments in relation to Brazil fraud findings that could impact 2015 final accounts (audited) compared to preliminary ones, nevertheless adjustments on historical financial statements before 2015 do not impact valuation exercise as free cash flow starts in 2016 Class Action lawsuit filed in January 2016 against Cnova regarding which exposure won’t be determined until there’s either a settlement (i.e., Cnova and the plaintiffs agree on an amount of damages) or a litigated outcome (a court reaches a conclusion on damages) A memorandum of understanding (MoU) with Via Varejo as regard the current contemplated transaction would probably have to deal with An adjustment of Nova valuation if the final impact on Cnova 2015 operating EBIT of Cnova is above BRL177.0m (€47.8m) which is the current management estimate Such an adjustment would negatively impact the terms of the transaction for Cnova but would contribute to secure the transaction by limiting Via Varejo ability to terminate MoU in case of closing delays (i.e. audited 2015 accounts needed to implement the merger) Discussion concerning Class Action consequences as part of Responsibilities and Warranties That are directly related to Nova activities but as we understand that legally are impacting Cnova Full protection mechanism assumed by Via Varejo/Nova could be considered as a starting point in terms of negotiations Locked box mechanism agreement in order to favour implementation benefits to both parties (loss limitation on one side and synergies quick implementation on the other side) Project Delphes - 23 March 2016 1 2 3

 

 
 

 

DRAFT Project Delphes - 23 March 2016 7 Nova valuation Cdiscount valuation Cnova valuation Via Varejo / Nova expected synergies Buyout premia analysis Appendix 1 2 3 4 5 7 17 28 40 43 47

 

 
 

 

DRAFT Project Delphes - 23 March 2016 Nova: Multi-criteria valuation approach 8 Valuation methodologies considered for Nova Methodology Main considerations Assessment Brokers Non-2 listed company, not applicable Share price performance 1 Non-listed company, not applicable Limited number of relevant electronics e-commerce transactions with publicly available information Recent Brazilian macroeconomic and political headwinds not factored in past transaction multiples LTM multiple applied to Nova 2015 sales Transaction multiples 5 Intrinsic methodology based on cash flow generation as expected by Nova management in the 2016-2018 business plan provided, assuming a progressive recovery of top line growth and margins BNP Paribas extrapolated the 2016-2018 management business plan to 2024 to reach normative level in 2025, assuming a continuing recovery of top line growth and margins Factoring and financing of consumer credits included in Cash Flows at EBITDA level Nova WACC in BRL estimated at 17.3%, based on current market data and incorporating a country risk premium for Brazil Discounted Cash Flow (“DCF”) Main valuation methodology (catch long term recovery) PPP 3 Peer group comprises Amazon and electronics e-commerce players active in emerging markets: JD.com, VIPShop, B2W Companhia and Dangdang B2W Companhia considered as the most comparable peer (active in Brazil and direct competitor to Nova) Pure market place players not retained as this activity is today small in terms of contribution in 2017 at Nova 2 methodologies used due to difference between peers in terms of size, geographical focus, etc. Regression analysis based on peers’ 2017e Gross Margin and 2017e EV/Sales multiples Gross Margin represents the best financial indicator as some peers have low / negative profitability at EBITDA level Use of 2017e B2W EV/Sales multiples with a discount as B2W benefits from higher Gross Margin than Nova: alternative methodology to cross check regression Peers’ Working Capital adjusted for seasonality (to be fully comparable to Nova’s adjustments) Trading multiples of comparable companies P 4 Valuation multiples used as reference value Not applicable Not applicable For information purposes only

 

 
 

 

DRAFT Project Delphes - 23 March 2016 Nova: Multi-criteria valuation summary Trading multiple valuation based on two approaches: - Regression analysis - B2W multiples with a discount to take into consideration Nova’s lower profitability 9 Valuation on a stand-alone basis (before synergies and holding costs) Nova Implied Equity value Note: Exchange rate used for 2015: EUR1.00 = BRL 3.7 (2015 average) and from 2016 onwards: EUR 1.00= BRL4.2 (1m average as of 18/03/2016) Relevancy Spot as of 18/03/16 1m avg 3m avg 6m avg 12m avg Since IPO @ IPO WACC +/ - 0.25% g +/ - 0.5% Based on 2017e EV/Sales Min/Max Based on LTM EV/Sales +/- 2.5% EQUITY VALUE (€m) - 500 1,000 1,500 2,000 2,500 3,000 3,500 - 2,000 4,000 6,000 8,000 10,000 12,000 14,000 Bridge Ev-Eq Case 1 (as of 31/12/15) 14 14 14 14 14 14 14 14 59 59 59 59 59 59 59 59 ENTREPRISE VALUE (€m) 14 514 1,014 1,514 2,014 2,514 3,014 3,514 59 2,059 4,059 6,059 8,059 10,059 12,059 14,059 2016e EV/Sales 1,472 0.01x 0.35x 0.69x 1.03x 1.37x 1.71x 2.05x 2.39x 0.01x 0.33x 0.65x 0.97x 1.29x 1.62x 1.94x 2.26x 2017e EV/Sales 1,624 0.01x 0.32x 0.62x 0.93x 1.24x 1.55x 1.86x 2.16x 0.01x 0.30x 0.59x 0.88x 1.17x 1.46x 1.76x 2.05x TRADING MULTIPLES DCF TRANSACTION MULTIPLES BROKERS TARGET PRICE SHARE PRICE Methodology Equity Value (€m) Equity Value (BRLm) 312 305 1,320 382 387 1,388 345 1,319 1,289 4,714 1,618 1,638 4,956 1,459 xxx x

 

 
 

 

DRAFT Project Delphes - 23 March 2016 Nova: EV – Equity adjustments Note: - Case 1 used for DCF valuation since Instalment costs are taken into account in the Cash Flows - Case 2 is used for valuation by Trading multiples, since it adjusts Nova’s NWC and Net Financial Debt for Factoring impact, which is not taken into consideration in the applied aggregates As of 31/12/2015, subject to potential impact of Class Action lawsuit filed in Jan 2016 EV – Equity adjustment Note: Exchange rate used EUR 1.00= BRL4.2 (1m average as of 18/03/2016); (1) Includes estimated Brazilian fraud impact at WC level; See detailed Working Capital normalization in appendix (1) 10 Case 1: Normative WC with instalments Case 2: Normative WC without instalments Category Value retained (€m) Value retained (BRLm) Value retained (€m) Value retained (BRLm) Comments Long term financial debt 8.3 35.0 8.3 35.0 Incl. loans and borrowings, lease financing and accrued interests Short term financial debt 2.7 11.3 2.7 11.3 Incl. loans and borrowings, lease financing and accrued interests Cash & Cash equivalents (254.4) (1,076.1) (254.4) (1,076.1) Incl. marketable securities Net debt / (Net Cash) (243.4) (1,029.8) (243.4) (1,029.8) Securitization - - - - NWC seasonality cash adjustment 247.8 1,048.3 142.2 601.5 WC Normalisation from December levels to LTM average Debt increase if no factoring - - 423.7 1,792.3 Required to adjust Cash position for proceeds from Factoring Financial Assets (incl. Associates) - - - - Deferred tax assets (5.7) (24.0) (7.6) (32.3) NPV of use of €10.7m of deferred tax assets at Nova Employee benefits - - - - Debt-like provisions 15.3 64.6 15.3 64.6 Provision for the Brazilian fraud and diverse lawsuits Cash from dilutive financial instruments - - - - Minority interests - - - - Total Enterprise Value Adjustments 14.0 59.1 330.1 1,396.2 [DCF] [Multiples]

 

 
 

 

Nova: Business Plan overview DRAFT Project Delphes - 23 March 2016 11 DS GM to decrease by 2025 due to competition, partially offset by Other activities Increasing SG&A due to growing contribution of MP into GMV MP contribution into GMV to reach Cdiscount level 3 years later with a maximum of 50% (excl. B2B and Wholesale) ~+150bps above LT Brazilian inflation (+4.5%) as ecommerce will benefit from high penetration rate D&A = Capex Stable WC at (5.2%) of Net Sales post Management BP Improving Gross Margin due to increasing MP contribution in GMV MANAGEMENT FORECASTS EXTRAPOLATION NORM. (FYE 31/12) Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Dec-25 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 GMV excl taxes (BRLm) 7,748 8,649 10,174 12,295 15,123 18,980 23,079 27,164 30,913 33,973 36,012 Growth % (%) +11.6% +17.6% +20.9% +23.0% +25.5% +21.6% +17.7% +13.8% +9.9% +6.0% o/w % of Direct Sales in GMV (%) 63.3% 57.6% 53.4% 47.0% 43.3% 39.3% 39.3% 39.3% 39.3% 39.3% o/w % of Marketplace in GMV (%) 17.4% 23.6% 28.4% 34.8% 38.5% 42.5% 42.5% 42.5% 42.5% 42.5% o/w % of Other activity in GMV (%) 19.2% 18.7% 18.2% 18.2% 18.2% 18.2% 18.2% 18.2% 18.2% 18.2% Net sales HT (BRLm) 6,126 6,228 6,870 7,886 9,029 10,851 12,566 14,818 16,896 18,605 19,721 Growth % (%) +1.7% +10.3% +14.8% +14.5% +20.2% +15.8% +17.9% +14.0% +10.1% +6.0% o/w Direct Sales (BRLm) 4,882 4,637 4,962 5,557 6,023 6,962 7,684 9,043 10,291 11,310 11,989 Growth % (%) (5.0%) +7.0% +12.0% +8.4% +15.6% +10.4% +17.7% +13.8% +9.9% +6.0% o/w MP Commissions (BRLm) 82 203 325 471 723 1,023 1,398 1,674 1,938 2,166 2,296 Growth % (%) +146.3% +60.0% +45.0% +53.7% +41.4% +36.7% +19.8% +15.8% +11.8% +6.0% Commissio n rate (%) 10.9% 13.5% 13.5% 13.5% 13.8% 14.0% 14.3% 14.5% 14.8% 15.0% 15.0% o/w Other (BRLm) 1,273 1,388 1,582 1,856 2,283 2,865 3,484 4,101 4,667 5,129 5,436 Growth % (%) +9.0% +14.0% +17.3% +23.0% +25.5% +21.6% +17.7% +13.8% +9.9% +6.0% Gross profit (BRLm) 511 891 1,128 1,443 1,816 2,313 2,868 3,375 3,839 4,218 4,471 Gross Margin (% of Net Sales) (%) 8.3% 14.3% 16.4% 18.3% 20.1% 21.3% 22.8% 22.8% 22.7% 22.7% 22.7% GM excl. MP (% of Net Sales) (%) 7.1% 11.4% 12.3% 13.1% 13.2% 13.1% 13.2% 12.9% 12.7% 12.5% 12.5% Total SG&A (BRLm) (886) (830) (917) (1,066) (1,254) (1,532) (1,843) (2,170) (2,470) (2,715) (2,878) % of GMV (%) (11.4%) (9.6%) (9.0%) (8.7%) (8.3%) (8.1%) (8.0%) (8.0%) (8.0%) (8.0%) (8.0%) % of Net Sales (%) (14.5%) (13.3%) (13.3%) (13.5%) (13.9%) (14.1%) (14.7%) (14.6%) (14.6%) (14.6%) (14.6%) EBITDA (bef. Instalment costs) (BRLm) (377) 61 211 377 562 781 1,025 1,205 1,369 1,503 1,593 % of Net Sales (%) (6.2%) 1.0% 3.1% 4.8% 6.2% 7.2% 8.2% 8.1% 8.1% 8.1% 8.1% Instalment costs (BRLm) (242) (315) (340) (397) (246) (295) (340) (379) (408) (422) (447) % of Net Sales (%) (4.0%) (5.1%) (4.9%) (5.0%) (2.7%) (2.7%) (2.7%) (2.6%) (2.4%) (2.3%) (2.3%) EBITDA (BRLm) (619) (254) (129) (20) 316 486 685 825 961 1,081 1,146 % of Net Sales (%) (10.1%) (4.1%) (1.9%) (0.2%) 3.5% 4.5% 5.4% 5.6% 5.7% 5.8% 5.8% D&A (BRLm) (57) (55) (56) (61) (88) (127) (174) (229) (287) (344) (396) % of GMV (%) (0.7%) (0.6%) (0.5%) (0.5%) (0.6%) (0.7%) (0.8%) (0.8%) (0.9%) (1.0%) (1.1%) % of Net Sales (%) (0.9%) (0.9%) (0.8%) (0.8%) (1.0%) (1.2%) (1.4%) (1.5%) (1.7%) (1.9%) (2.0%) CAPEX (BRLm) (106) (89) (112) (135) (166) (209) (254) (299) (340) (374) (396) % of GMV (%) (1.4%) (1.0%) (1.1%) (1.1%) (1.1%) (1.1%) (1.1%) (1.1%) (1.1%) (1.1%) (1.1%) % of Net Sales (%) (1.7%) (1.4%) (1.6%) (1.7%) (1.8%) (1.9%) (2.0%) (2.0%) (2.0%) (2.0%) (2.0%) Change in Working Capital (BRLm) 506 41 (6) (44) 60 95 90 118 108 89 58 Working Capital (BRLm) (535) (476) (456) (412) (471) (566) (656) (774) (882) (971) (1,029) % of Net Sales (%) (8.7%) (7.6%) (6.6%) (5.2%) (5.2%) (5.2%) (5.2%) (5.2%) (5.2%) (5.2%) (5.2%) Inventory (COGS excl ship.) (days) 55 47 45 44 Receivables (GM V) (days) 18 19 18 17 Payables (COGS excl ship.) (days) 134 129 124 119 Change in WC - Other (BRLm) 5 100 14 - - - - - - - - 2015 WC normalized based on monthly average # of days; decrease in # of days forecasted in the BP is applied to 2015 monthly average # of days to estimate “normalized” WC in 2016-2018 SELIC decreasing to 8%, avg. instalments to 4 times and GMV requiring factoring to 80%

 

 
 

 

Nova: Discounted Cash Flow valuation DRAFT Project Delphes - 23 March 2016 12 Main assumptions: Valuation as of 01/01/2016 Tax rate: 34% (Brazil) WACC: 17.3% Tax credits valued separately as the business plan period is not long enough to use current stock and tax losses carry forward generated in 2016-2018 Discounted Cash Flow model Enterprise Value & Equity Value WACC & PGR Sensitivity on Equity Value Note: Exchange rate used for 2015: EUR1.00 = BRL 3.70 (2015 average) and from 2016 onwards: EUR 1.00= BRL4.2 (1m average as of 18/03/2016) (units) HISTO. MANAGEMENT FORECASTS EXTRAPOLATION NORM. CAGR (FYE 31/12) Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Dec-25 2016-18 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Net sales (BRLm) 6,126 6,228 6,870 7,886 9,029 10,851 12,566 14,818 16,896 18,605 19,721 +12.5% Growth % (%) +1.7% +10.3% +14.8% +14.5% +20.2% +15.8% +17.9% +14.0% +10.1% +6.0% EBITDA (bef. Instalment) (BRLm) (377) 61 211 377 562 781 1,025 1,205 1,369 1,503 1,593 +148.3% % of Net Sales (%) (6.2%) 1.0% 3.1% 4.8% 6.2% 7.2% 8.2% 8.1% 8.1% 8.1% 8.1% Instalment costs (%) (242) (315) (340) (397) (246) (295) (340) (379) (408) (422) (447) +12.1% % on Net Sales (%) (4.0%) (5.1%) (4.9%) (5.0%) (2.7%) (2.7%) (2.7%) (2.6%) (2.4%) (2.3%) (2.3%) EBITDA (BRLm) (619) (254) (129) (20) 316 486 685 825 961 1,081 1,146 (72.3%) % of Net Sales (%) (10.1%) (4.1%) (1.9%) (0.2%) 3.5% 4.5% 5.4% 5.6% 5.7% 5.8% 5.8% - D&A (BRLm) (57) (55) (56) (61) (88) (127) (174) (229) (287) (344) (396) +5.7% % of GMV (%) (0.7%) (0.6%) (0.5%) (0.5%) (0.6%) (0.7%) (0.8%) (0.8%) (0.9%) (1.0%) (1.1%) % of Net Sales (%) (0.9%) (0.9%) (0.8%) (0.8%) (1.0%) (1.2%) (1.4%) (1.5%) (1.7%) (1.9%) (2.0%) EBIT (BRLm) (676) (309) (185) (81) 227 360 510 597 675 737 750 (48.9%) % of Net Sales (%) (11.0%) (5.0%) (2.7%) (1.0%) 2.5% 3.3% 4.1% 4.0% 4.0% 4.0% 3.8% - Normative tax rate (BRLm) - - - (77) (122) (173) (203) (229) (250) (255) n.m. % normative tax rate (%) 34.0% 34.0% 34.0% 34.0% 34.0% 34.0% 34.0% 34.0% 34.0% 34.0% 34.0% + D&A (BRLm) 57 55 56 61 88 127 174 229 287 344 396 +5.7% % on Net Sales (%) 0.9% 0.9% 0.8% 0.8% 1.0% 1.2% 1.4% 1.5% 1.7% 1.9% 2.0% - CAPEX (BRLm) (106) (89) (112) (135) (166) (209) (254) (299) (340) (374) (396) +23.1% % of GMV (%) (1.4%) (1.0%) (1.1%) (1.1%) (1.1%) (1.1%) (1.1%) (1.1%) (1.1%) (1.1%) (1.1%) % on Net Sales (%) (1.7%) (1.4%) (1.6%) (1.7%) (1.8%) (1.9%) (2.0%) (2.0%) (2.0%) (2.0%) (2.0%) - Change in Normative WC (BRLm) 506 41 (6) (44) 60 95 90 118 108 89 58 n.m. % on Net Sales (%) 8.3% 0.7% (0.1%) (0.6%) 0.7% 0.9% 0.7% 0.8% 0.6% 0.5% 0.3% WC % on Net Sales (8.7%) (7.6%) (6.6%) (5.2%) (5.2%) (5.2%) (5.2%) (5.2%) (5.2%) (5.2%) (5.2%) Free cash flows (BRLm) (302) (247) (199) 132 251 347 441 500 546 553 (18.8%) Free cash flows (€m) (71) (58) (47) 31 59 82 104 118 129 131 (18.8%) WACC BRLm 1,459 (0.5%) (0.3%) 0.3% 0.5% (1.0%) 1,406 1,350 1,297 1,245 1,196 (0.5%) 1,492 1,432 1,374 1,319 1,266 1,586 1,521 1,459 1,399 1,343 0.5% 1,689 1,618 1,551 1,487 1,425 1.0% 1,802 1,725 1,652 1,582 1,516 €m (1.0%) 332 319 307 294 283 (0.5%) 353 338 325 312 299 375 359 345 331 317 0.5% 399 382 367 351 337 1.0% 426 408 390 374 358 PERPETUAL GROWTH PERPETUAL GROWTH As of 01/01/2016 €m BRLm % NPV (2016e-2024e FCFs) 43 183 12% Terminal value 299 1,263 83% NPV tax credits 17 71 5% ENTERPRISE VALUE 359 1,518 100% 2017e EV/Sales 0.22x 2017e EV/EBITDA (post instalments) n.m. - EvEq Adjustments (14) (59) EQUITY VALUE 345 1,459

 

 
 

 

DRAFT Company Market Cap. (€m) EV (€m) Equity beta Net debt/ (Net cash) Tax rate (%) Asset beta Gearing Amazon 235,347 228,772 1.09 (3,154) 40% 1.09 (1.3%) JD.com 39,101 35,537 1.37 (1,883) 25% 1.42 (4.8%) Vipshop Holdings 6,213 5,978 1.51 (109) 25% 1.53 (1.7%) B2W 813 1,696 1.58 822 34% 0.95 101.1% Dangdang 499 380 1.03 (58) 25% 1.13 (11.6%) Average All Peers 56,395 54,473 1.31 1.22 16.3% Median All Peers 6,213 5,978 1.37 1.13 (1.7%) Nova: Weighted Average Cost of Capital Project Delphes - 23 March 2016 The cost of capital is the minimum rate of return on the company’s investments that would satisfy both shareholders (cost of equity) and lenders (cost of debt) The Capital Asset Pricing Model (CAPM) is a widely used model by the market assessing the best estimation of the investor’s expected return of an asset based on its beta and expected market returns Selected Peers have been chosen for their business and geographical Comparability (emerging markets) Beta computation WACC computation Source: Company information, Datastream, BNP Paribas Arbitrage, Beta Barra GEM3 (Global beta); (1) 1-month average Market Cap., 1-month average FX local currency to € 1 13 WACC SOURCE / COMMENTS Risk f ree rate USD (Rf ) 2.0% 1-month average USD BNP Paribas Arbitrage Equity Risk Premium (ERP) 6.2% 1-month average USD BNP Paribas Arbitrage Beta (β) 1.13 Peers' median asset beta leveraged for target gearing assumed at Nova Country Risk Premium (CRP) 4.7% 10YR USD Govt bond spread Datastream Cost of Equity (USD) 13.7% CoE = Rf + β*ERP + CRP US average inf lation rate 2.0% IMF 2016-20 Average US CPI (average of period) Brazil average inf lation rate 5.2% IMF 2016-20 Average Brazil CPI (average of period) Cost of Equity (BRL) 17.3% Fisher 10YR Brazilian bonds (BRL) 14.9% Brazil 10YR Generic Govt bond Datastream Credit Spread 1.0% Spread betw een company market cost of debt and selected risk f ree rate Pre - Tax Cost of Debt (BRL) 15.9% CoD = Rf + Sp Normative tax rate (T) 34.0% Corporate Tax Rate in Brazil Target Gearing (G) - In line w ith median for selected peers WACC BRL 17.3% WACC = (G*CoD*(1-T) + CoE)/(1+G)

 

 
 

 

DRAFT 2017e EV/Sales 2017e Gross Margin Amazon Jd.Com Vipshop B2W Dangdang Nova y = 5.92x - 0.58 R² = 0.78 n.a. 0.25x 0.50x 0.75x 1.00x 1.25x 1.50x 1.75x 2.00x 10% 15% 20% 25% 30% 35% 40% 16.4% 0.39x Project Delphes - 23 March 2016 Nova: Trading multiples valuation (1/2) 14 Regression analysis Source: Datastream, company information. Note: Market cap. based on 1m avg share price 2017e EV/Sales vs. 2017e Gross Margin Methodology: Regression analysis performed on the entire peers sample. Gross Margin considered as the best financial indicator of profitability as most of the peers (incl. Nova) have a low or negative profitability at EBITDA or EBIT level Case 2 EvEq bridge is used for valuation by Trading multiples, since it adjusts Nova’s Net Financial Debt for proceeds from Factoring, which is not taken into consideration in the applied aggregates Nova (€m) (BRLm) 2017e Gross Margin 16.4% 16.4% Implied 2017e EV/Sales 0.39x 0.39x 2017e Sales 1,624 6,870 EV 635 2,685 Ev-Eq adjustments (330) (1,396) Equity 305 1,289

 

 
 

 

DRAFT Project Delphes - 23 March 2016 Nova: Trading multiples valuation (2/2) 15 Alternative methodology to cross-check regression analysis Note: Exchange rate used for 2015: EUR1.00 = BRL 3.7 (2015 average) and from 2016 onwards: EUR 1.00= BRL4.2 (1m average as of 18/03/2016); (1) before Instalments Source: Datastream, company information. Note: Market cap. based on 1m avg share price Trading multiples Operating benchmark Methodology: B2W assumed as the best peer (similar market share, product offering, geographical footprint, size, etc.). Multiple retained: 2017e B2W EV/Sales multiples with a discount to take into account Nova’s lower profitability at Gross Margin level Case 2 EvEq bridge is used for valuation by Trading multiples, since it adjusts Nova’s Net Financial Debt for proceeds from Factoring, which is not taken into consideration in the applied aggregates Sales growth Gross margin EBITDA margin EBITA margin Capex in % of sales €m 2016e 2017e 2018e 2016e 2017e 2018e 2016e 2017e 2018e 2016e 2017e 2018e 2015e 2016e 2017e Amazon.Com +21.0% +19.1% +19.3% 34.4% 35.6% 37.4% 9.7% 10.2% 10.9% 3.1% 4.0% 6.0% 4.3% 4.2% 3.8% Jd.Com +41.0% +32.1% +24.3% 14.7% 15.9% 17.6% (0.6%) 0.9% 3.1% (1.2%) 0.4% 2.7% 1.7% 1.0% 1.1% Vipshop +36.6% +28.6% +19.7% 24.4% 24.4% 24.4% 6.3% 6.4% 6.6% 5.1% 5.5% 5.8% 3.0% 2.5% 2.6% B2W +12.0% +15.6% +18.7% 21.5% 21.9% 22.3% 7.3% 7.8% 8.2% 4.6% 5.3% 6.0% 6.2% 4.2% 1.5% Dangdang +23.2% +23.9% na 15.7% 16.0% na 1.9% 3.3% na 0.8% 2.7% na na na na Average +26.8% +23.8% +20.5% 22.1% 22.7% 25.4% 4.9% 5.7% 7.2% 2.5% 3.6% 5.1% 3.8% 3.0% 2.2% Median +23.2% +23.9% +19.5% 21.5% 21.9% 23.3% 6.3% 6.4% 7.4% 3.1% 4.0% 5.9% 3.7% 3.3% 2.0% Nova +1.7% +10.3% +14.8% 14.3% 16.4% 18.3% 1.0% 3.1% 4.8% (5.0%) (2.7%) (1.0%) 1.4% 1.6% 1.7% M a r k e t E V / S a l e s E V / E B I T D A E V / E B I T A A d j u s t e d P E R a t i o €m Cap. 2016e 2017e 2018e 2016e 2017e 2018e 2016e 2017e 2018e 2016e 2017e 2018e Amazon.Com 235,347 228,772 1.99x 1.67x 1.40x 20.6x 16.4x 12.8x nm nm 23.2x nm nm 31.1x Jd.Com 39,101 35,537 1.02x 0.77x 0.62x nm nm 19.8x nm nm 22.9x nm nm 30.7x Vipshop 6,213 5,978 0.79x 0.62x 0.52x 12.6x 9.6x 7.8x 15.5x 11.3x 8.9x 19.5x 13.9x 11.1x B2W 813 1,696 0.68x 0.59x 0.50x 9.3x 7.6x 6.0x 14.8x 11.0x 8.3x nm nm nm Dangdang 499 380 0.22x 0.18x na 11.7x 5.5x na 29.4x 6.7x na 23.3x 7.7x na Average 0.94x 0.77x 0.76x 13.5x 9.8x 11.6x 19.9x 9.7x 15.8x 21.4x 10.8x 24.3x Median 0.79x 0.62x 0.57x 12.1x 8.6x 10.3x 15.5x 11.0x 15.9x 21.4x 10.8x 30.7x Financials (BRLm) 6,228 6,870 7,886 Nova impl ied EV pre discount (BRLm) 4,233 4,041 3,908 Nova impl i ed EV pre di scount (€m) 1,001 955 924 Discount applied 33.4% 24.9% 18.0% Discount based on Nova / B2W Gross Margin ratio Nova impl ied EV retained (BRLm) 2,821 3,035 3,203 Nova impl i ed EV retai ned (€m) 667 717 757 EvEq adjustments (BRLm) (1,396) EvEq adjustments (€m) (330) Nova impl ied Eq value (BRLm) 1,424 1,638 1,807 Nova impl i ed Eq val ue (€m) 337 387 427 EV (1)

 

 
 

 

DRAFT Project Delphes - 23 March 2016 Nova: Transaction multiples valuation 16 For information purposes only Note: (1) Implied multiples based on LTM financials; (2) Net debt as of 3Q13 does not include credit card accounts receivables net of discounts as cash Source: Datastream, company information, Press Selected precedent transactions and Nova implied Equity Value (€m) Limited number of relevant electronics ecommerce transactions with publicly available information Recent Brazilian macroeconomic and political headwinds not factored in past transaction multiples % EV Implied multiples(1) Date Target Country Business overview Acquiror acquired (USDm) xSales xEBITDA Nov-15 Avenida.com Argentina E-commerce Naspers Limited and Tiger Global n.a. n.a. n.a. n.a. Sep-14 Avenida.com Argentina E-commerce Naspers Limited and Tiger Global n.a. n.a. n.a. n.a. Sep-14 Kabum Brazil E-retailing of consumer electronics and technology goods Management of Kabum 50% n.a. n.a. n.a. Feb-14 Avenida.com Argentina E-commerce IRSA propriedaes comerciales n.a. n.a. n.a. n.a. Jan-14 B2W Companhia Digital Brazil E-commerce Lojas Americanas and Tiger Global 37% 2,396 1.02x 15.1x Jan-12 Ideiasnet Brazil Digital Commerce, Digital Media, SaaS Liberty Media 5% n.a. n.a.. n.a.. Mar-11 KaBuM Brazil E-retailing of electronics and technology goods Insight Venture Partners Minority stake n.a. n.a. n.a. Sep-09 BuscaPé Brazil E-commerce platform in Latin America Naspers Limited 91% n.a. n.a. n.a. Aug-08 DeRemate Latin America Online trading platform in Argentina, Chile, Colombia and Mexico MercadoLibre, Inc. 100% n.a. n.a. n.a. Dec-06 Submarino Brazil E-commerce Lojas Americanas.com Merger n.m. n.m. n.m. Average 1.02x 15.1x Median 1.02x 15.1x 2015 Nova Sales (BRLm) 6,126 2015 Nova Sales (€m) 1,655 Impl ied EV (BRLm) 6,232 Impl ied EV (€m) 1,684 EvEq adjustments (BRLm) (1,396) EvEq adjustments (€m) (330) Impl ied Equi ty Value (BRLm) 4,835 Impl ied Equi ty Value (€m) 1,354 (2)

 

 
 

 

DRAFT Project Delphes - 23 March 2016 17 Nova valuation Cdiscount valuation Cnova valuation Via Varejo / Nova expected synergies Buyout premia analysis Appendix 1 2 3 4 5 7 17 28 40 43 47

 

 
 

 

DRAFT Project Delphes - 23 March 2016 Cdiscount: Multi-criteria valuation approach 18 Valuation methodologies considered for Cdiscount Methodology Main considerations Assessment Peer group comprises Amazon and small/mid-size e-commerce companies active in Europe with a focus on consumer discretionary (electronics, apparel and pet food): AO World, Zooplus, Showroomprive, Verkkokauppa.com, Banzai and Qliro Group Pure market place players not retained as this activity is still small in terms of contribution in 2017 at Cdiscount Cdiscount featured by lower profitability / growth compared to peers 2 methodologies used Use of 2017e peers’ median EV/Sales multiples Use of 2017e AO World EV/Sales multiples with a discount as it benefits from better growth profile than Cdiscount: alternative methodology to cross check peers’ group median multiples Peers’ Working Capital adjusted for seasonality Trading multiples of comparable companies Valuation multiples used as reference value P 4 Discounted Cash Flow (“DCF”) Main valuation methodology (catch long term recovery) PPP 3 Intrinsic methodology based on cash flow generation as expected by Cdiscount management in the 2016-2018 business plan provided, assuming a progressive recovery of top line growth and margins BNP Paribas extrapolated the 2016-2018 management business plan to 2024 to reach normative level in 2025, assuming a continuing recovery of top line growth and margins Factoring and financing of consumer credits included in Cash Flows at EBITDA level Cdiscount - France WACC in EUR estimated at 8.7%, computed based on current market data Cdiscount - International WACC in EUR estimated at 13.7% derived as Cdiscount WACC (8.7%) increased by a country risk premium (+5.0%) Brokers Non-2 listed company, not applicable Share price performance 1 Non-listed company, not applicable Not applicable Not applicable Not retained given no relevance in scenario under analysis Transaction multiples 5 For information purposes only

 

 
 

 

DRAFT Project Delphes - 23 March 2016 Cdiscount: Multi-criteria valuation summary Trading multiple valuation based on two approaches: - Peers’ group median multiples - AO World multiples with a discount to take into consideration Cdiscount’s lower growth profile 19 Valuation on a stand-alone basis (before holding costs) Cdiscount (France & International) Implied Equity value Note: Exchange rate used for 2015: EUR1.00 = BRL 3.7 (2015 average) and from 2016 onwards: EUR 1.00= BRL4.2 (1m average as of 18/03/2016) Relevancy Spot as of 18/03/16 1m avg 3m avg 6m avg 12m avg Since IPO @ IPO WACC +/ - 0.25% g +/ - 0.5% Based on 2017e Min/Max Based on LTM EV/Sales +/- 2.5% EQUITY VALUE (€m) - 500 1,000 1,500 2,000 2,500 3,000 3,500 Bridge Ev-Eq Case 1 (as of 31/12/15) 147 147 147 147 147 147 147 147 ENTREPRISE VALUE (€m) 147 647 1,147 1,647 2,147 2,647 3,147 3,647 2016e EV/Sales 1,841 0.08x 0.35x 0.62x 0.89x 1.17x 1.44x 1.71x 1.98x 2017e EV/Sales 2,000 0.07x 0.32x 0.57x 0.82x 1.07x 1.32x 1.57x 1.82x SHARE PRICE Methodology TRANSACTION MULTIPLES BROKERS TARGET PRICE TRADING MULTIPLES DCF Equity Value (€m) 859 997 744 1,132 1,023 782 980 x x x xxx x

 

 
 

 

DRAFT Project Delphes - 23 March 2016 Cdiscount: EV – Equity adjustment Key missing information / issues to be tackled: - Proceeds from sale of Cdiscount Vietnam Note: - Case 1 used for DCF valuation since Instalment costs are taken into account in the Cash Flows - Case 2 is used for valuation by Trading multiples, since it adjusts Cdiscount’s Net Financial Debt for proceeds from Factoring, which is not taken into consideration in the applied aggregates As of 31/12/2015 EV – Equity adjustment Note: (1) See detailed Working Capital normalization in appendix (1) 20 [DCF] [Multiples] Case 1: Normative WC with instalments Case 2: Normative WC without instalments Category Value retained (€m) Value retained (€m) Comments Long term financial debt 6.5 6.5 Incl. loans and borrowings, lease financing and accrued interests Short term financial debt 129.5 129.5 Incl. loans and borrowings, lease financing and accrued interests Cash & Cash equivalents (146.4) (146.4) Incl. marketable securities Net debt / (Net Cash) (10.4) (10.4) Securitization - - NWC seasonality cash adjustment 198.8 134.2 WC Normalisation from December levels to LTM average Debt increase if no factoring - 198.3 Required to adjust Cash position for proceeds from Factoring Financial Assets (incl. Associates) (7.0) (7.0) Assets held for sale (Vietnam) and other financial assets Deferred tax assets (18.0) (19.2) NPV of use of €23m of deferred tax assets at Cdiscount Employee benefits 1.7 1.7 Incl. pension provisions Debt-like provisions 4.1 4.1 Incl. provision for diverse lawsuits and restructuring Proceeds from sale of stake in Cdiscount Thailand (28.0) (28.0) Transaction signed on Feb 27, 2016 and completed on Mar 21, 2016 Proceeds from sale of Cdiscount Vietnam [ ] [ ] Difference vs. book value of €4.3m already in Assets held for sale Cash from dilutive financial instruments - - Minority interests 5.5 5.5 Total Enterprise Value Adjustments 146.7 279.2

 

 
 

 

DRAFT MANAGEMENT FORECASTS EXTRAPOLATION NORM. (FYE 31/12) Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Dec-25 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 GMV excl taxes (€m) 2,116 2,476 2,773 3,185 3,758 4,547 5,330 6,044 6,624 7,008 7,148 Growth % (%) +17.0% +12.0% +14.8% +18.0% +21.0% +17.2% +13.4% +9.6% +5.8% +2.0% % of Direct Sales in GMV (%) 71.8% 65.2% 61.5% 56.8% 55.8% 54.8% 53.9% 52.9% 51.9% 50.0% 50.0% % of Marketplace in GMV (%) 28.2% 34.8% 38.5% 43.2% 44.2% 45.2% 46.1% 47.1% 48.1% 50.0% 50.0% Net sales HT (€m) 1,737 1,818 1,968 2,133 2,483 2,963 3,425 3,830 4,138 4,252 4,337 Growth % (%) +4.6% +8.2% +8.4% +16.4% +19.4% +15.6% +11.8% +8.0% +2.8% +2.0% o/w Direct Sales (€m) 1,579 1,615 1,706 1,808 2,097 2,493 2,871 3,197 3,440 3,504 3,574 Growth % (%) +2.2% +5.6% +6.0% +16.0% +18.9% +15.1% +11.4% +7.6% +1.9% +2.0% o/w MP Commissions (€m) 74 115 142 184 221 274 327 379 424 466 475 Growth % (%) +54.3% +23.9% +28.8% +20.6% +23.6% +19.7% +15.7% +11.8% +10.0% +2.0% Commissio n rate (%) 12.5% 13.3% 13.3% 13.3% 13.3% 13.3% 13.3% 13.3% 13.3% 13.3% 13.3% o/w Other (€m) 83 88 120 141 165 196 227 254 274 282 287 Growth % (%) +6.1% +35.9% +18.2% +16.4% +19.4% +15.6% +11.8% +8.0% +2.8% +2.0% Gross profit (€m) 225 264 321 383 454 552 650 740 815 869 887 Gross Margin (% of Net Sales) (%) 13.0% 14.5% 16.3% 17.9% 18.3% 18.6% 19.0% 19.3% 19.7% 20.4% 20.5% GM excl. MP (% of Net Sales) (%) 9.1% 8.7% 9.8% 10.2% 10.3% 10.3% 10.4% 10.5% 10.5% 10.6% 10.7% Total SG&A (€m) (213) (234) (258) (280) (327) (392) (455) (510) (554) (573) (585) % of Net Sales (%) (12.3%) (12.9%) (13.1%) (13.1%) (13.2%) (13.2%) (13.3%) (13.3%) (13.4%) (13.5%) (13.5%) EBITDA (bef. Instalment) (€m) 13 30 63 102 126 160 195 230 262 295 303 % of Net Sales (%) 0.7% 1.6% 3.2% 4.8% 5.1% 5.4% 5.7% 6.0% 6.3% 6.9% 7.0% Instalment costs (€m) (13) (23) (23) (23) (22) (27) (31) (35) (37) (39) (39) % of Net Sales (%) (0.7%) (1.3%) (1.2%) (1.1%) (0.9%) (0.9%) (0.9%) (0.9%) (0.9%) (0.9%) (0.9%) EBITDA (€m) (0) 7 40 79 104 133 164 195 224 257 263 % of Net Sales (%) (0.0%) 0.4% 2.0% 3.7% 4.2% 4.5% 4.8% 5.1% 5.4% 6.0% 6.1% D&A (€m) (21) (24) (28) (30) (39) (51) (64) (78) (92) (103) (111) % of GMV (%) (1.0%) (1.0%) (1.0%) (0.9%) (1.0%) (1.1%) (1.2%) (1.3%) (1.4%) (1.5%) (1.6%) % of Net Sales (%) (1.2%) (1.3%) (1.4%) (1.4%) (1.6%) (1.7%) (1.9%) (2.0%) (2.2%) (2.4%) (2.6%) CAPEX (€m) (43) (41) (46) (50) (58) (71) (83) (94) (103) (109) (111) % of GMV (%) (2.0%) (1.7%) (1.7%) (1.6%) (1.6%) (1.6%) (1.6%) (1.6%) (1.6%) (1.6%) (1.6%) % of Net Sales (%) (2.5%) (2.3%) (2.3%) (2.3%) (2.4%) (2.4%) (2.4%) (2.5%) (2.5%) (2.6%) (2.6%) Change in Working Capital (€m) 24 48 21 25 23 32 31 27 21 8 6 Working Capital (€m) (78) (112) (127) (143) (166) (198) (229) (256) (277) (285) (290) % of Net Sales (%) (4.5%) (6.1%) (6.4%) (6.7%) (6.7%) (6.7%) (6.7%) (6.7%) (6.7%) (6.7%) (6.7%) Inventory (COGS excl ship.) (days) 56 52 50 48 Receivables (Sales) (days) 19 16 15 15 Payables (COGS excl ship.) (days) 103 103 103 103 Change in WC - Other (€m) - 14 6 8 - - - - - - - Cdiscount – France: Business Plan overview Project Delphes - 23 March 2016 21 Improvement thanks to decreasing contribution of DS into GMV Increasing SG&A due to MP growing contribution into GMV Increasing contribution of MP in total GMV to reach 50% in normative year ~+50bps above LT French inflation (+1.5%) as ecommerce will benefit from high penetration rate D&A = Capex Stable WC at (6.7%) of Net Sales Improving Gross Margin due to increasing contribution of MP in GMV 2015 WC normalized based on monthly average # of days; decrease in # of days forecasted in the BP is applied to 2015 monthly average # of days to estimate “normalized” WC in 2016-2018 No Ducroire factoring from 2019 onwards

 

 
 

 

Cdiscount – France: Discounted Cash Flow valuation DRAFT Project Delphes - 23 March 2016 22 Main assumptions: Valuation as of 01/01/2016 Tax rate: 34.4% (French) WACC: 8.7% Before holding costs Tax credits including in the Free Cash Flows as the business plan period is long enough to fully use them Discounted Cash Flow model Enterprise Value & Equity Value WACC & PGR Sensitivity on Equity Value (units) HISTO. MANAGEMENT FORECASTS EXTRAPOLATION NORM. CAGR (FYE 31/12) Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Dec-25 2016-18 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Net sales (€m) 1,737 1,818 1,968 2,133 2,483 2,963 3,425 3,830 4,138 4,252 4,337 +8.3% Growth % (%) +4.6% +8.2% +8.4% +16.4% +19.4% +15.6% +11.8% +8.0% +2.8% +2.0% EBITDA (bef. Instalment) (€m) 13 30 63 102 126 160 195 230 262 295 303 +86.3% % of Net Sales (%) 0.7% 1.6% 3.2% 4.8% 5.1% 5.4% 5.7% 6.0% 6.3% 6.9% 7.0% Instalment costs (%) (13) (23) (23) (23) (22) (27) (31) (35) (37) (39) (39) - % on Net Sales (%) (0.7%) (1.3%) (1.2%) (1.1%) (0.9%) (0.9%) (0.9%) (0.9%) (0.9%) (0.9%) (0.9%) EBITDA (€m) (0) 7 40 79 104 133 164 195 224 257 263 +249.1% % of Net Sales (%) (0.0%) 0.4% 2.0% 3.7% 4.2% 4.5% 4.8% 5.1% 5.4% 6.0% 6.1% - D&A (€m) (21) (24) (28) (30) (39) (51) (64) (78) (92) (103) (111) +12.0% % of GMV (%) (1.0%) (1.0%) (1.0%) (0.9%) (1.0%) (1.1%) (1.2%) (1.3%) (1.4%) (1.5%) (1.6%) % of Net Sales (%) (1.2%) (1.3%) (1.4%) (1.4%) (1.6%) (1.7%) (1.9%) (2.0%) (2.2%) (2.4%) (2.6%) EBIT (€m) (21) (17) 12 49 65 82 100 117 132 154 152 n.m. % of Net Sales (%) (1.2%) (1.0%) 0.6% 2.3% 2.6% 2.8% 2.9% 3.1% 3.2% 3.6% 3.5% - Normative tax rate (€m) - (4) (17) (22) (28) (34) (40) (46) (53) (52) n.m. % normative tax rate (%) 34.4% 34.4% 34.4% 34.4% 34.4% 34.4% 34.4% 34.4% 34.4% 34.4% 34.4% + Use of tax credits - 4 2 - - - - - - - + D&A (€m) 21 24 28 30 39 51 64 78 92 103 111 +12.0% % on Net Sales (%) 1.2% 1.3% 1.4% 1.4% 1.6% 1.7% 1.9% 2.0% 2.2% 2.4% 2.6% - CAPEX (€m) (43) (41) (46) (50) (58) (71) (83) (94) (103) (109) (111) +10.0% % of GMV (%) (2.0%) (1.7%) (1.7%) (1.6%) (1.6%) (1.6%) (1.6%) (1.6%) (1.6%) (1.6%) (1.6%) % on Net Sales (%) (2.5%) (2.3%) (2.3%) (2.3%) (2.4%) (2.4%) (2.4%) (2.5%) (2.5%) (2.6%) (2.6%) - Change in Normative WC (€m) 24 48 21 25 23 32 31 27 21 8 6 (28.7%) % on Net Sales (%) 1.4% 2.7% 1.1% 1.2% 0.9% 1.1% 0.9% 0.7% 0.5% 0.2% 0.1% WC % on Net Sales (4.5%) (6.1%) (6.4%) (6.7%) (6.7%) (6.7%) (6.7%) (6.7%) (6.7%) (6.7%) (6.7%) Free cash flows (€m) 14 15 40 47 66 78 88 96 103 105 +68.9% WACC €m 976 (0.5%) (0.3%) 0.3% 0.5% (1.0%) 914 873 834 797 763 (0.5%) 992 944 900 859 820 1,082 1,027 976 929 886 0.5% 1,188 1,124 1,065 1,011 961 1.0% 1,315 1,239 1,169 1,106 1,048 PERPETUAL GROWTH As of 01/01/2016 €m % NPV (2016e-2024e FCFs) 342 30% Terminal value 781 70% ENTERPRISE VALUE 1,123 100% 2017e EV/Sales 0.57x 2017e EV/EBITDA (post instalments) 28.0x - EvEq Adjustments (147) EQUITY VALUE 976

 

 
 

 

Cdiscount – International: Discounted Cash Flow valuation DRAFT Project Delphes - 23 March 2016 23 Main assumptions: Valuation as of 01/01/2016 Tax rate: 34.4% (French) WACC: 13.7% derived as Cdiscount WACC (8.7%) increased by a country risk premium (+5.0%) Tax credits valued separately as the business plan period is not long enough to use current stock and tax losses carry forward generated over the BP period Normative year: - Perpetual growth rate: +7.0% (mostly emerging countries) with 2019 and 2020 @+40% and +45% reflecting continuous ramp-up of existing operations - EBITDA margin: 4% - D&A=Capex as a % of Net Sales: (2.0%) (Nova level) - Change in WC as a % of change in Net Sales: 2.3% (2018e level) Discounted Cash Flow model Enterprise Value & Equity Value WACC & PGR Sensitivity on Equity Value (units) HISTO. MANAGEMENT FORECASTS EXTRAPOLATION NORM. CAGR (FYE 31/12) Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Dec-25 2016-18 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Net sales (€m) 28 23 33 45 63 91 125 162 198 227 243 +38.7% Growth % (%) -15.9% +40.9% +36.4% +40.0% +45.0% +37.4% +29.8% +22.2% +14.6% +7.0% EBITDA (€m) (22) (6) (5) (4) (3) (3) (2) 0 4 9 10 (22.0%) % of Net Sales (%) (78.4%) (26.4%) (14.8%) (8.3%) (5.0%) (3.2%) (1.5%) 0.3% 2.1% 3.8% 4.0% - D&A (€m) (1) (1) (1) (1) (2) (3) (3) (4) (5) (5) (5) +39.0% % of Net Sales (%) (3.1%) (3.0%) (3.5%) (3.0%) (2.9%) (2.7%) (2.6%) (2.4%) (2.3%) (2.1%) (2.0%) EBIT (€m) (23) (7) (6) (5) (5) (5) (5) (4) (0) 4 5 (13.7%) % of Net Sales (%) (81.5%) (29.4%) (18.3%) (11.4%) (7.9%) (6.0%) (4.1%) (2.2%) (0.2%) 1.7% 2.0% - Normative tax rate (€m) - - - - - - - - (1) (2) n.m. % normative tax rate (%) 34.4% 34.4% 34.4% 34.4% 34.4% 34.4% 34.4% 34.4% 34.4% 34.4% 34.4% + Use of tax credits - - - - - - - - 1 2 + D&A (€m) 1 1 1 1 2 3 3 4 5 5 5 +39.0% % on Net Sales (%) 3.1% 3.0% 3.5% 3.0% 2.9% 2.7% 2.6% 2.4% 2.3% 2.1% 2.0% - CAPEX (€m) (4) (3) (2) (1) (2) (2) (3) (4) (4) (5) (5) (33.9%) % on Net Sales (%) (14.1%) (11.4%) (7.5%) (2.6%) (2.5%) (2.4%) (2.3%) (2.3%) (2.2%) (2.1%) (2.0%) - Change in Normative WC (€m) n.a. (1) (1) 0 0 1 1 1 1 1 0 n.m. % of change in Net Sales (%) 23.2% (10.8%) 2.3% 2.3% 2.3% 2.3% 2.3% 2.3% 2.3% 2.3% Free cash flows (€m) (10) (8) (5) (4) (5) (4) (2) 1 5 5 (31.4%) WACC €m 4 (0.5%) (0.3%) 0.3% 0.5% (1.0%) 2 1 (0) (2) (3) (0.5%) 4 3 2 0 (1) 7 6 4 3 1 0.5% 11 9 7 5 4 1.0% 15 12 10 8 6 PERPETUAL GROWTH As of 01/01/2016 €m % NPV (2016e-2024e FCFs) (26) (651%) Terminal value 27 678% NPV tax credits 3 74% ENTERPRISE VALUE 4 100% 2017e EV/Sales 0.12x 2017e EV/EBITDA (post instalments) n.m. - EvEq Adjustments - EQUITY VALUE 4

 

 
 

 

DRAFT Company Market Cap. (€m ) EV (€m ) Equity beta Net debt/ (Net cash) Tax rate (%) Asset beta Gearing Amazon 235,347 228,772 1.09 (3,154) 40% 1.09 (1.3%) Ao World 930 898 0.79 (32) 21% 0.82 (3.5%) Zooplus 790 746 1.06 (44) 30% 1.10 (5.5%) Show roomprive 571 451 0.70 (119) 34% 0.81 (20.8%) Verkkokauppa 340 314 0.62 (26) 20% 0.66 (7.6%) Banzai 167 142 0.97 (38) 31% 1.13 (22.9%) Qliro 129 121 1.45 (7) 22% 1.52 (5.7%) Average All Peers 34,039 33,064 0.95 1.02 (9.6%) Median All Peers 571 451 0.97 1.09 (5.7%) WACC SOURCE / COMMENTS Risk f ree rate EUR (Rf) 0.2% 1-month average Associés en Finance Equity Risk Premium (ERP) 7.4% 1-month average Associés en Finance Equity beta (βe) 1.09 Peers' median asset beta leveraged for target gearing assumed at Cdiscount Country Risk Premium (CRP) 0.4% 10YR Govt bond spread Datastream Cost of Equity EUR (CoE) 8.7% CoE = Rf + βe*ERP + CRP Risk f ree rate EUR (Rf) 0.2% 1-month average Associés en Finance Target corporate spread (Sp) 2.8% Spread betw een company market cost of debt and selected risk f ree rate Pre-tax Cost of Debt EUR (CoD) 3.0% CoD = Rf + Sp Normative tax rate (T) 34.4% France Corporate Income Tax rate Target Gearing (G) - In line w ith median of selected peers WACC EUR 8.7% WACC = (G*CoD*(1-T) + CoE)/(1+G) Cdiscount – France: Weighted Average Cost of Capital Project Delphes - 23 March 2016 The cost of capital is the minimum rate of return on the company’s investments that would satisfy both shareholders (cost of equity) and lenders (cost of debt) The Capital Asset Pricing Model (CAPM) is a model widely used by the market assessing the best estimation of the investor’s expected return of an asset based on its beta and expected market returns Peers have been chosen for their business and geographical comparability (focus on Europe) Beta computation WACC computation Source: Company information, Datastream, Exane BNP Paribas, Beta Barra GEM3 (Global beta); (1) 1-month average Market Cap., 1-month average FX local currency to € 1 24

 

 
 

 

DRAFT Project Delphes - 23 March 2016 25 Cdiscount: Trading multiples valuation (1/2) A wider and more relevant peer group for Cdiscount compared to Nova Methodology: Multiple retained: 2017e peers group median EV/Sales multiples Case 2 EvEq bridge is used for valuation by Trading multiples, since it adjusts Cdiscount’s Net Financial Debt for proceeds from Factoring, which is not taken into consideration in the applied aggregates No discount applied to peers’ median multiple even though Cdiscount has lower profitability generation than its peers due to relevant peer group Trading multiples Source: Datastream, company information. Note: Market cap. based on 1m avg share price Operating benchmark M a r k e t E V / S a l e s E V / E B I T D A E V / E B I T A A d j u s t e d P E R a t i o €m Cap. 2016e 2017e 2018e 2016e 2017e 2018e 2016e 2017e 2018e 2016e 2017e 2018e Amazon.Com 235,347 228,772 1.99x 1.67x 1.40x 20.6x 16.4x 12.8x nm nm 23.2x nm nm 31.1x Ao World 930 898 0.98x 0.80x na nm nm na nm nm na nm nm na Zooplus 790 746 0.81x 0.65x na nm 24.2x na nm 26.3x na nm 41.9x na Show roomprive 571 451 0.83x 0.69x 0.59x 13.9x 10.1x 7.7x 16.0x 11.4x 8.7x 33.0x 22.6x 17.2x Verkkokauppa Com 340 314 0.77x 0.65x 0.58x 17.6x 11.6x na 18.8x 12.1x 9.1x 26.1x 16.4x na Banzai 167 142 0.47x 0.36x 0.30x 27.6x 9.0x 5.0x nm 17.4x 6.9x nm 33.2x 13.1x Qliro Group 129 121 0.20x 0.19x 0.18x 11.0x 5.6x 4.1x 19.7x 7.6x 5.3x 28.3x 10.6x 7.3x Average 0.86x 0.72x 0.61x 18.1x 12.8x 7.4x 18.2x 14.9x 10.6x 29.1x 24.9x 17.2x Median 0.81x 0.65x 0.58x 17.6x 10.8x 6.4x 18.8x 12.1x 8.7x 28.3x 22.6x 15.2x Sales Cdiscount (€m) 1,841 2,000 2,178 o/w Cdiscount France 1,818 1,968 2,133 o/w Cdiscount Intl' 23 33 45 Cdi scount impl i ed EV pre di scount (€m) 1,488 1,303 1,254 Discount applied - - - Cdi scount impl i ed EV retai ned (€m) 1,488 1,303 1,254 o/w Cdiscount France retained 1,470 1,281 1,228 o/w Cdiscount Intl' retained 19 21 26 EvEq adjustments (€m) (279) Cdi scount impl i ed Eq val ue (€m) 1,209 1,023 975 o/w Cdiscount France 1,190 1,002 949 o/w Cdiscount Intl' 19 21 26 EV Sales growth Gross margin EBITDA margin EBITA margin Capex in % of sales €m 2016e 2017e 2018e 2016e 2017e 2018e 2016e 2017e 2018e 2016e 2017e 2018e 2015e 2016e 2017e Amazon.Com +21.0% +19.1% +19.3% 34.4% 35.6% 37.4% 9.7% 10.2% 10.9% 3.1% 4.0% 6.0% 4.4% 4.3% 4.2% Ao World +27.3% +22.9% na 17.8% 17.8% na 0.8% 2.3% na (0.7%) na na 0.8% na na Zooplus +28.0% +24.8% na 27.0% 26.1% na 2.1% 2.7% na 1.9% 2.5% na 0.5% 0.4% na Show roomprive +22.9% +20.3% +17.1% 40.3% 40.1% 40.9% 5.9% 6.8% 7.6% 5.2% 6.1% 6.8% 1.4% 1.4% 1.5% Verkkokauppa Com +19.3% +17.6% +13.1% 15.8% 17.1% na 4.3% 5.6% na 4.1% 5.4% 6.3% 0.3% 0.3% 0.3% Banzai +29.0% +28.7% +21.7% 20.5% 19.8% 21.5% 1.7% 4.1% 6.0% (0.8%) 2.1% 4.3% 5.4% 4.2% 2.3% Qliro Group +6.5% +5.9% +6.1% 13.8% 14.5% 14.5% 1.9% 3.4% 4.4% 1.0% 2.5% 3.5% 2.0% 1.7% 1.5% Average +22.0% +19.9% +15.5% 24.2% 24.4% 28.6% 3.8% 5.0% 7.2% 2.0% 3.8% 5.4% 2.1% 2.1% 1.9% Median +22.9% +20.3% +17.1% 20.5% 19.8% 29.4% 2.1% 4.1% 6.8% 1.9% 3.3% 6.0% 1.4% 1.6% 1.5% Cdiscount +4.6% +8.2% +8.4% 14.5% 16.3% 17.9% 1.6% 3.2% 4.8% (1.0%) 0.6% 2.3% 2.3% 2.3% 2.3%

 

 
 

 

DRAFT Project Delphes - 23 March 2016 26 Cdiscount: Trading multiples valuation (2/2) Alternative methodology to cross-check peers’ group median multiples Methodology: AO World assumed as the most comparable peer (business profile, product offering, size, etc.). Multiple retained: 2017e AO World EV/Sales multiples with a 20% discount to take into account Cdiscount’s lower growth profile (see appendix for more details) Case 2 EvEq bridge is used for valuation by Trading multiples, since it adjusts Cdiscount’s Net Financial Debt for proceeds from Factoring, which is not taken into consideration in the applied aggregates Please see Appendix for details on applied discount Trading multiples Source: Datastream, company information. Note: Market cap. based on 1m avg share price Operating benchmark Sales growth Gross margin EBITDA margin EBITA margin Capex in % of sales €m 2016e 2017e 2018e 2016e 2017e 2018e 2016e 2017e 2018e 2016e 2017e 2018e 2015e 2016e 2017e Amazon.Com +21.0% +19.1% +19.3% 34.4% 35.6% 37.4% 9.7% 10.2% 10.9% 3.1% 4.0% 6.0% 4.4% 4.3% 4.2% Ao World +27.3% +22.9% na 17.8% 17.8% na 0.8% 2.3% na (0.7%) na na 0.8% na na Zooplus +28.0% +24.8% na 27.0% 26.1% na 2.1% 2.7% na 1.9% 2.5% na 0.5% 0.4% na Show roomprive +22.9% +20.3% +17.1% 40.3% 40.1% 40.9% 5.9% 6.8% 7.6% 5.2% 6.1% 6.8% 1.4% 1.4% 1.5% Verkkokauppa Com +19.3% +17.6% +13.1% 15.8% 17.1% na 4.3% 5.6% na 4.1% 5.4% 6.3% 0.3% 0.3% 0.3% Banzai +29.0% +28.7% +21.7% 20.5% 19.8% 21.5% 1.7% 4.1% 6.0% (0.8%) 2.1% 4.3% 5.4% 4.2% 2.3% Qliro Group +6.5% +5.9% +6.1% 13.8% 14.5% 14.5% 1.9% 3.4% 4.4% 1.0% 2.5% 3.5% 2.0% 1.7% 1.5% Average +22.0% +19.9% +15.5% 24.2% 24.4% 28.6% 3.8% 5.0% 7.2% 2.0% 3.8% 5.4% 2.1% 2.1% 1.9% Median +22.9% +20.3% +17.1% 20.5% 19.8% 29.4% 2.1% 4.1% 6.8% 1.9% 3.3% 6.0% 1.4% 1.6% 1.5% Cdiscount +4.6% +8.2% +8.4% 14.5% 16.3% 17.9% 1.6% 3.2% 4.8% (1.0%) 0.6% 2.3% 2.3% 2.3% 2.3% M a r k e t E V / S a l e s E V / E B I T D A E V / E B I T A A d j u s t e d P E R a t i o €m Cap. 2016e 2017e 2018e 2016e 2017e 2018e 2016e 2017e 2018e 2016e 2017e 2018e Amazon.Com 235,347 228,772 1.99x 1.67x 1.40x 20.6x 16.4x 12.8x nm nm 23.2x nm nm 31.1x Ao World 930 898 0.98x 0.80x na nm nm na nm nm na nm nm na Zooplus 790 746 0.81x 0.65x na nm 24.2x na nm 26.3x na nm 41.9x na Show roomprive 571 451 0.83x 0.69x 0.59x 13.9x 10.1x 7.7x 16.0x 11.4x 8.7x 33.0x 22.6x 17.2x Verkkokauppa Com 340 314 0.77x 0.65x 0.58x 17.6x 11.6x na 18.8x 12.1x 9.1x 26.1x 16.4x na Banzai 167 142 0.47x 0.36x 0.30x 27.6x 9.0x 5.0x nm 17.4x 6.9x nm 33.2x 13.1x Qliro Group 129 121 0.20x 0.19x 0.18x 11.0x 5.6x 4.1x 19.7x 7.6x 5.3x 28.3x 10.6x 7.3x Average 0.86x 0.72x 0.61x 18.1x 12.8x 7.4x 18.2x 14.9x 10.6x 29.1x 24.9x 17.2x Median 0.81x 0.65x 0.58x 17.6x 10.8x 6.4x 18.8x 12.1x 8.7x 28.3x 22.6x 15.2x Sales Cdiscount (€m) 1,841 2,000 2,178 o/w Cdiscount France 1,818 1,968 2,133 o/w Cdiscount Intl' 23 33 45 Cdi scount impl i ed EV pre di scount (€m) 1,804 1,595 na Discount applied 20.0% 20.0% 20.0% Derived by applying AOWorld 2016e / 2017e estimated metrics into Cdiscount DCF Cdi scount impl i ed EV retai ned (€m) 1,443 1,276 na o/w Cdiscount France retained 1,425 1,255 na o/w Cdiscount Intl' retained 18 21 na EvEq adjustments (€m) (279) Cdi scount impl i ed Eq val ue (€m) 1,164 997 na o/w Cdiscount France 1,145 976 na o/w Cdiscount Intl' 18 21 na EV

 

 
 

 

DRAFT Project Delphes - 23 March 2016 Cdiscount: Transaction multiples valuation 27 For information purposes only Note: (1) Implied multiples based on LTM financials Source: Datastream, company information, Press Selected precedent transactions and Cdiscount implied Equity Value (€m) Methodology: Sample based on European electronics ecommerce transactions Sample median EV/Sales applied to LTM Sales (Full Year 2015) % EV Implied multiples(1) Date Target Country Business overview Acquiror acquired (EURm) xSales xEBITDA xEBITA PER Dec-15 Materiel.net France Online retailer of high tech products LDLC 100% 41 0.27x -- 11.4x -- Feb-12 Bol.com Netherlands Books, entertainment, electronics devices and toys Ahold 100% 350 0.99x -- -- -- Oct-11 rueducomerce.com France Hightech retailer Altarea Cogedim 96% 85 0.27x 15.8x 60.1x 72.0x Apr-11 Tretti AB Sw eden White goods and domestic appliances CDON Group 97% 40 0.79x 13.0x 14.3x -- Mar-11 Redcoon Germany Electronic goods Metro Group 90% 139 0.39x -- -- -- Dec-10 NetonNet Sw eden Electronic products Siba 97% 27 0.11x 5.5x 10.5x -- Aug-10 CDON Group Sw eden Movies, music, games, books and consumer electronics Modern Times Group 100% 237 1.27x 17.0x 17.8x -- Apr-09 Bol.com Netherlands Books, entertainment, electronics devices and toys Cyrte Investments 100% 200 0.89x -- -- -- Average 0.62x 12.8x 22.8x 72.0x Median 0.59x 14.4x 14.3x 72.0x 2015 Cdiscount Sales (€m) 1,765 o/w Cdiscount France (€m) 1,737 o/w Cdiscount Intl' (€m) 28 Impl ied EV (€m) 1,043 o/w Cdiscount France (€m) 1,026 o/w Cdiscount Intl' (€m) 16 EvEq adjustments (€m) (279) Impl ied Equi ty Value (€m) 763

 

 
 

 

DRAFT Project Delphes - 23 March 2016 28 Nova valuation Cdiscount valuation Cnova valuation Via Varejo / Nova expected synergies Buyout premia analysis Appendix 1 2 3 4 5 7 17 28 40 43 47

 

 
 

 

DRAFT Project Delphes - 23 March 2016 Cnova: Multi-criteria valuation approach 29 IPO price is only considered as a benchmark in a valuation process as of today considering recent Brazilian macroeconomic and political headwinds since then Methodology Main considerations Assessment SOTP based on Nova and Cdiscount valuation obtained through trading multiples Includes holding costs Trading multiples of comparable companies Valuation multiples used as reference value P 4 Discounted Cash Flow (“DCF”) Main valuation methodology (catch long term recovery) PPP 3 SOTP based on Nova and Cdiscount valuation obtained through DCF Includes holding costs Share price performance Valuation grounded on company share trading in the stock market. Average of different time horizons applied (spot, 1m, 3m, 6m, 12m, since IPO, at IPO) Potentially capturing specific market events / company executed or expected corporate actions that may punctually / over a period of time have a significant impact on company valuation IPO price is a benchmark. However recent Brazilian macroeconomic and political headwinds have strongly impacted Cnova share price and could not be disregarded 1 Brokers Valuation based on share Target Prices 2 estimated by brokers covering Cnova Not retained given no relevance in scenario under analysis (where no control premium can be materialised) No applicable transactions in electronics e-commerce in Latam reflecting current Brazil macro-environment Transaction multiples 5 For information purposes only Benchmark PP Benchmark PP

 

 
 

 

DRAFT Project Delphes - 23 March 2016 Cnova: multi-criteria valuation summary Premiums applied correspond to the min and max of the median of premiums registered in buyout transactions in Brazil, Europe and US fulfilling the following criteria: i) ≥ EUR 100m deal value, ii) involving an initial stake ≥ 30%, iii) paid in cash and iv) occurring between 2011 – 2016 (see section 5 Buyout premia analysis for list of transactions retained) 30 €2.84 ($3.14) /share based on DCF central valuation methodology, above share price during recent periods and consistent with alternative methodologies Cnova (Equity value & Share price) +X% +X% Premium range applied on average point: Relevancy Equity Value (€m) Share Price (€) Spot as of 18/03/16 1m avg Min/Max of the VWAP 3m avg Min/Max of the VWAP 6m avg Min/Max of the VWAP 12m avg Min/Max of the VWAP Since IPO Min/Max of the VWAP @IPO (20/11/14) Min/Max of the brokers' target price WACC +/ - 0.25% g +/ - 0.5% Based on 2017e EV/Sales +/- 2.5% Based on LTM EV/Sales +/- 2.5% EQUITY VALUE (€m) - 500 1,000 1,500 2,000 2,500 3,000 3,500 - 1.20 2.40 3.60 4.80 6.00 7.20 8.40 Bridge Ev-Eq Case 1 (as of 31/12/15) 166 166 166 166 166 166 166 166 ENTREPRISE VALUE (€m) 166 666 1,166 1,666 2,166 2,666 3,166 3,666 2016e EV/Sales 3,313 0.05x 0.20x 0.35x 0.50x 0.65x 0.80x 0.96x 1.11x 2017e EV/Sales 3,624 0.05x 0.18x 0.32x 0.46x 0.60x 0.74x 0.87x 1.01x SHARE PRICE DCF TRANSACTION MULTIPLES Methodology TRADING MULTIPLES BROKERS TARGET PRICE 874 874 874 874 874 605 1,095 1,251 1,993 969 1,037 1,037 1,541 2,719 3,167 2,463 1,614 1,443 1,315 2,095 +15% +36% +16%+28% +19% +29% +19%+30% +13% +32% 1.98 1.98 1.98 1.98 1.98 1.37 2.48 2.83 4.52 2.20 2.35 2.35 3.49 6.16 7.18 5.58 3.66 3.27 2.98 4.75 +15% +36% +16% +28% +19% +29% +19% +30% +13% +32% 1,015 2.30 xxx x 1,252 2.84 xx xx

 

 
 

 

DRAFT In €m Category Nova + Cdiscount = Cnova Nova + Cdiscount = Cnova Comments Long term financial debt 8.3 + 6.5 = 14.8 8.3 + 6.5 = 14.8 Incl. loans & borrowings, lease financing and accrued interests Short term financial debt 2.7 + 129.5 = 132.2 2.7 + 129.5 = 132.2 Incl. loans & borrowings, lease financing and accrued interests Cash & Cash equivalents (254.4) + (146.4) = (400.8) (254.4) + (146.4) = (400.8) Incl. marketable securities Net debt / (Net Cash) (243.4) (10.4) (253.8) (243.4) (10.4) (253.8) Securitization - + - = - - + - = - NWC seasonality cash adjustment 247.8 + 198.8 = 446.6 142.2 + 134.2 = 276.4 WC Normalisation from December levels to LTM average Debt increase if no factoring - + - = - 423.7 + 198.3 = 622.0 Required to adjust cash position for proceeds from factoring Financial Assets (incl. Associates) - + (7.0) = (7.0) - + (7.0) = (7.0) Assets held for sale (Vietnam) and other financial assets Deferred tax assets (5.7) + (18.0) = (23.7) (7.6) + (19.2) = (26.8) NPV of deferred tax assets at Cdiscount and Nova Employee benefits - + 1.7 = 1.7 - + 1.7 = 1.7 Incl. pension provisions Debt-like provisions 15.3 + 4.1 = 19.4 15.3 + 4.1 = 19.4 Incl. provision for restructuring, Brazilian fraud and diverse lawsuits Proceeds sale of stake Cdiscount Thailand - + (28.0) = (28.0) - + (28.0) = (28.0) Transaction signed on Feb 27, 2016 and completed on Mar 21, 2016 Proceeds sale of Cdiscount Vietnam - + [ ] = - - + [ ] = - Difference vs. book value of €4.3m already in Assets held for sale Costs related to Class action filed in the US - + - = 5.0 - + - = 5.0 Based on our understanding as of today - update in due time Cash from dilutive financial instruments - + - = - - + - = - Minority interests - + 5.5 = 5.5 - + 5.5 = 5.5 Total Enterprise Value Adjustments 14.0 146.7 165.6 330.1 279.2 614.3 NOSH (in m) 441.3 441.3 As of 31/12/2015 Case 1: Normative WC with instalments Case 2: Normative WC without instalments Project Delphes - 23 March 2016 Cnova: EV – Equity adjustments As of 31/12/2015, subject to potential impact of Class Action lawsuit filed in Jan 2016 (1) Case 1 is used for DCF valuation since Installment costs are taken into account in the Cash Flows; (2) Case 2 is used for valuation through Trading multiples, since it adjusts Nova’s NWC and Net Financial Debt for Factoring impact, which is not taken into consideration in the applied aggregates; (3) Includes estimated Brazilian fraud impact at WC level - see detailed Working Capital normalization in appendix; Note I: Exchange rate used EUR 1.00= BRL4.2 (1m average as of 18/03/2016); Note II: Key missing information / issues to be tackled: Potential impact of Class Action lawsuit filed in January 2016 on behalf of purchasers of CNova Securities (1) 31 (3) (2) EV – Equity adjustment [DCF] [Multiples]

 

 
 

 

DRAFT (in EUR) 20/11/14 - 18/03/16 ('000) 2.3 2.8 3.1 3.4 4.6 4.6 5.1 6.0 5.8 6.1 6.1 7.3 7.3 8.7 8.7 7.7 - 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Volumes Cnova Target price avg. to date Price at IPO 5.9 Declining Cnova share price since IPO discards this methodology Project Delphes - 23 March 2016 32 Since IPO Cnova share price decreased by (60.7%) while decreasing by (9.4%) from start of the Brazilian inventory review to March 2016 Cnova share price and main results release since its IPO (€) Since its IPO Cnova share price has been impacted by - Results released below analysts’ expectations - Unfavourable Brazilian economic climate since Cnova IPO as well as FX deflation 29/04/15: Q1 2015 results: Margins published below expectations 22/07/15: Q2 2015 results: Margins and H2 2015 guidance below expectations 28/01/15: Q4 2014 results: Margins below expectations and cautious Q1 2015 guidance 28/10/15: Q3 2015 results: Poor performance in Brazil and decelerating growth trends 24/02/15: Q4 2015 results: Profits below consensus 18/12/15: Cnova share price evolution (based on IPO price) -51.3% Class Action -9.4% Cnova share price performance and Brazilian Index (€; rebased on Cnova) Source: Datastream EUR/BRL exchange rate evolution since Cnova IPO 2.5 3.0 3.5 4.0 4.5 5.0 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 1 2 3 4 5 6 7 8 9 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Cnova Brazil Bovespa (€) Brazil Bovespa (BRL) (65.3%) (24.9%) (4.8%)

 

 
 

 

Cnova: Share Price Performance (2/2) DRAFT Project Delphes - 23 March 2016 33 High volatility of Cnova share over the last weeks Low liquidity of Cnova shares which does not offer a good exit for minorities Cnova share trading volume statistics Source: Datastream Cnova Share Price Performance vs. Main market references Daily volumes Rotation (In EUR) 18/03/15 - 18/03/16 As of 18/03/16 Spot 465 2.2 1.0 0.11% 1.75% Last month 133 2.1 0.3 0.03% 0.50% Last 3 months 165 2.1 0.4 0.04% 0.62% Last 6 months 113 2.3 0.3 0.03% 0.43% Last 9 months 94 2.8 0.3 0.02% 0.36% Last 12 months 102 3.6 0.4 0.02% 0.38% Source: Datastream * Based on weighted average closing share price Traded volumes by price range Based on closing share price 18/03/15 - 18/03/16 (In EUR per share) Over capital Over f ree f loat Average '000 Wght. avg. share price Vol. in EURm* 48.9% 6.0% 4.2% 17.1% 23.8% 2.0 to 2.8 2.8 to 3.7 3.7 to 4.5 4.5 to 5.3 5.3 to 6.2 - 500 1,000 1,500 2,000 - 2.0 4.0 6.0 8.0 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Volumes Cnova Share price Performance (In EUR) 18/03/15 - 18/03/16 As of 18/03/16 Min. Max. Spot -- 2.2 -- -- -- 1-month 2.0 2.1 2.3 (4.0%) (8.5%) 3-month 2.0 2.1 2.3 (19.3%) (13.1%) 6-month 2.0 2.3 3.5 (35.6%) (38.4%) 9-month 2.0 2.8 5.2 (57.0%) (55.3%) 12-month 2.0 3.6 6.2 (59.0%) (53.0%) Since IPO 2.0 4.2 7.2 @ IPO -- 5.6 -- NB: Weighted average and performance based on closing share price Vol. w ght. avg. Absolute perf . Rel. to Nasdaq (In EUR per share) 1.0 2.0 3.0 4.0 5.0 6.0 7.0 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Cnova Nasdaq 100 (rebased)

 

 
 

 

Brokers’ views on Cnova DRAFT Project Delphes - 23 March 2016 34 Brokers valuing Cnova at an average target price of €2.3 Last publication: Q4 2015 (24/02/2016) Brokers’ views (after last earnings publication) Note: (1) Before last publication; (2) includes all brokers (even before last earnings publication) Source: Datastream Brokers’ recommendations development(2) Target Price by range Analyst's name Date of review Reco. Target price Price @ reco. Previous target(1) Exane Simon Bowler 14/03/2016 Neutral 1.8 2.2 1.8 - JP Morgan Borja Olcese 01/03/2016 Neutral 2.5 2.0 2.5 - HSBC Richard Cathcart 29/02/2016 Sell 1.4 2.1 1.5 (6.3%) Credit Suisse Stephen Ju 25/02/2016 Sell 3.7 2.2 3.7 - Societe Generale Arnaud Joly 25/02/2016 Neutral 2.4 2.2 2.4 - Deutsche Bank Kevin LaBuz 24/02/2016 Neutral 2.3 2.3 3.7 (37.5%) Kepler Cheuvreux Fabienne Caron 24/02/2016 Neutral 2.1 2.3 2.1 - Average 2.3 2.5 (8.3%) (in EUR) Broker % change vs. previous 78% 56% 50% 43% 44% 44% 44% 33% 11% 22% 33% 38% 57% 44% 44% 44% 56% 78% 80% 75% 67% 67% 67% 11% 13% 11% 11% 11% 11% 11% 20% 25% 33% 33% 33% Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 Today Buy Hold Sell (in EUR) Min: 1.4 Avg.: 2.3 Max: 3.7 vs. spot as of 18/03/16 -37.5% +4.7% +66.6% 28.6% 28.6% 28.6% - 14.3% 1.4 to 1.8 1.8 to 2.3 2.3 to 2.7 2.7 to 3.2 3.2 to 3.7

 

 
 

 

Cnova: Business Plan overview DRAFT Project Delphes - 23 March 2016 35 Note: (1) excluding Holding costs of €15m in 2016e and €7m in 2017e and onwards & before instalment and factoring costs; (2) excluding Cdiscount International MANAGEMENT FORECASTS EXTRAPOLATION NORM. (FYE 31/12) Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Dec-25 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 2015 GMV excl taxes (€m) 4,242 4,551 5,222 6,158 7,333 9,034 10,785 12,465 13,931 15,039 15,661 Growth % (%) +7.3% +14.7% +17.9% +19.1% +23.2% +19.4% +15.6% +11.8% +8.0% +4.1% o/w Cdiscount (€m) 2,116 2,476 2,773 3,185 3,758 4,547 5,330 6,044 6,624 7,008 7,148 Growth % (%) +17.0% +12.0% +14.8% +18.0% +21.0% +17.2% +13.4% +9.6% +5.8% +2.0% o/w Nova (€m) 2,094 2,045 2,405 2,906 3,575 4,487 5,456 6,421 7,307 8,031 8,513 Growth % (%) +11.6% +17.6% +20.9% +23.0% +25.5% +21.6% +17.7% +13.8% +9.9% +6.0% Net sales HT (€m) 3,420 3,313 3,624 4,042 4,680 5,619 6,521 7,495 8,330 8,877 9,242 Growth % (%) -3.1% +9.4% +11.5% +15.8% +20.1% +16.0% +14.9% +11.1% +6.6% +4.1% o/w Cdiscount (€m) 1,737 1,818 1,968 2,133 2,483 2,963 3,425 3,830 4,138 4,252 4,337 Growth % (%) +4.6% +8.2% +8.4% +16.4% +19.4% +15.6% +11.8% +8.0% +2.8% +2.0% o/w Nova (€m) 1,655 1,472 1,624 1,864 2,134 2,565 2,970 3,503 3,994 4,398 4,662 Growth % (%) +1.7% +10.3% +14.8% +14.5% +20.2% +15.8% +17.9% +14.0% +10.1% +6.0% EBITDA before Instalments(1) (€m) (111) 38 108 188 256 341 435 515 589 659 689 % of Net Sales (%) (3.2%) 1.1% 3.0% 4.6% 5.5% 6.1% 6.7% 6.9% 7.1% 7.4% 7.5% o/w Cdiscount (€m) 13 30 63 102 126 160 195 230 262 295 303 % of Net Sales (%) 0.7% 1.6% 3.2% 4.8% 5.1% 5.4% 5.7% 6.0% 6.3% 6.9% 7.0% o/w Nova (€m) (102) 14 50 89 133 185 242 285 324 355 377 % of Net Sales (%) (6.2%) 1.0% 3.1% 4.8% 6.2% 7.2% 8.2% 8.1% 8.1% 8.1% 8.1% EBITDA (€m) (190) (60) 5 71 175 245 324 391 455 521 544 % of Net Sales (%) (5.5%) (1.8%) 0.1% 1.8% 3.7% 4.4% 5.0% 5.2% 5.5% 5.9% 5.9% o/w Cdiscount (€m) (0) 7 40 79 104 133 164 195 224 257 263 % of Net Sales (%) (0.0%) 0.4% 2.0% 3.7% 4.2% 4.5% 4.8% 5.1% 5.4% 6.0% 6.1% o/w Nova (€m) (167) (60) (30) (5) 75 115 162 195 227 256 271 % of Net Sales (%) (10.1%) (4.1%) (1.9%) (0.2%) 3.5% 4.5% 5.4% 5.6% 5.7% 5.8% 5.8% CAPEX (€m) (76) (65) (75) (83) (99) (122) (146) (168) (188) (202) (210) % of GMV (%) (1.8%) (1.4%) (1.4%) (1.3%) (1.4%) (1.4%) (1.4%) (1.4%) (1.3%) (1.3%) (1.3%) % of Net Sales (%) (2.2%) (2.0%) (2.1%) (2.0%) (2.1%) (2.2%) (2.2%) (2.2%) (2.3%) (2.3%) (2.3%) o/w Cdiscount (€m) (43) (41) (46) (50) (58) (71) (83) (94) (103) (109) (111) % of GMV (%) (2.0%) (1.7%) (1.7%) (1.6%) (1.6%) (1.6%) (1.6%) (1.6%) (1.6%) (1.6%) (1.6%) % of Net Sales (%) (2.5%) (2.3%) (2.3%) (2.3%) (2.4%) (2.4%) (2.4%) (2.5%) (2.5%) (2.6%) (2.6%) o/w Nova (€m) (29) (21) (26) (32) (39) (49) (60) (71) (80) (88) (94) % of GMV (%) (1.4%) (1.0%) (1.1%) (1.1%) (1.1%) (1.1%) (1.1%) (1.1%) (1.1%) (1.1%) (1.1%) % of Net Sales (%) (1.7%) (1.4%) (1.6%) (1.7%) (1.8%) (1.9%) (2.0%) (2.0%) (2.0%) (2.0%) (2.0%) Working Capital(2) (€m) (222) (224) (234) (240) (278) (332) (384) (439) (485) (514) (534) % of Net Sales (%) (6.5%) (6.8%) (6.5%) (5.9%) (5.9%) (5.9%) (5.9%) (5.9%) (5.8%) (5.8%) (5.8%) o/w Cdiscount (€m) (78) (112) (127) (143) (166) (198) (229) (256) (277) (285) (290) % of Net Sales (%) (4.5%) (6.1%) (6.4%) (6.7%) (6.7%) (6.7%) (6.7%) (6.7%) (6.7%) (6.7%) (6.7%) o/w Nova (€m) (145) (112) (108) (97) (111) (134) (155) (183) (208) (230) (243) % of Net Sales (%) (8.7%) (7.6%) (6.6%) (5.2%) (5.2%) (5.2%) (5.2%) (5.2%) (5.2%) (5.2%) (5.2%)

 

 
 

 

Cnova: SOTP valuation based on DCF DRAFT Project Delphes - 23 March 2016 36 From EV to Equity Value (€m) Note: (1) Sum of Nova and Cdiscount Ev-Eq bridge of respectively €14m and €147m (do not include the amount of transaction fees at CNova level, which are to be assessed) in addition to €5m costs related to Class Action in the US (1) €1,127m 1,123 1,417 1,252 4 359 (68) (166) Cdiscount - FR Cdiscount - Intl' Nova Holding costs EV Bridge Ev-Eq Equity

 

 
 

 

DRAFT 2017e EV/Sales 0.64x 0.64x 0.42x 0.52x Sales (€m) 1,968 33 1,624 3,624 . 1,268 1,897 1,283 21 676 (68) (614) Cdiscount - FR Cdiscount - Intl' Nova Holding costs EV Bridge Ev-Eq Equity Cnova: Trading multiples valuation Project Delphes - 23 March 2016 37 From EV to Equity Value (€m) Based on Cdiscount France 2017e EV/Sales multiple Note: (1) Sum of Nova and Cdiscount Ev-Eq bridge of respectively €330m and €279m (do not include the amount of transaction fees at CNova level, which are to be assessed) in addition to €5m costs related to Class Action in the US (1) €1,289m

 

 
 

 

Cnova: Transaction multiples valuation DRAFT Project Delphes - 23 March 2016 38 For illustration purpose only From EV to Equity Value (€m) (1) €1,043m Note: (1) Sum of Nova and Cdiscount Ev-Eq bridge of respectively €330m and €279m (do not include the amount of transaction fees at CNova level, which are to be assessed) in addition to €5m costs related to Class Action in the US EV/Sales 0.59x 0.59x 1.02x 0.78x LTM Sales (€m) 1,737 28 1,655 3,420 . 1,026 2,658 2,044 16 1,684 (68) (614) Cdiscount - FR Cdiscount - Intl' Nova Holding costs EV Bridge Ev-Eq Equity

 

 
 

 

DRAFT WACC (0.50%) (0.25%) 0.25% 0.50% Holding costs' NPV (72) (70) (68) (67) (65) Holding costs: €15m in 2016e (conservative approach) and €7m in 2017e and onwards WACC: of 8.7% (Cdiscount) Tax rate: 25% (Netherlands) Holding costs valuation (€m) Cnova holding costs Project Delphes - 23 March 2016 39 Holding costs valued at ~€68m based on management forecasts Detailed Holding Costs (€m) Note: (1) including IR team wages starting in 2017 €m Dec-16 Dec-17 Tax and legal adv. (0.8) Printing - Merril (0.1) Legal & Compliance (0.9) - Audit fees (EY) (1.0) (0.2) Memberships & subs. (0.0) Conso (1.0) (0.2) Costs listing Nasdaq (0.0) FTI & other (0.2) (0.8) Membership (0.1) IR (0.4) (0.8) Wages NV & France (6.3) (1.1) Temporary employees (0.4) Director's fees (0.3) (0.3) Other labour costs (0.3) (0.2) Labour costs (7.2) (1.6) Travel expenses (0.3) Office rent and maintenance (0.6) (0.3) Other expenses (0.6) (0.3) Other general expenses (1.5) (0.6) Management fees (4.3) (1.9) ROC (15.4) (5.1) APCO (0.0) - Additional costs considering Nasdaq listing - (1.8) Total holding costs (15.4) (6.9) (1) Holding costs not included in stand-alone Business Plans for Nova and Cdiscount but included in Cnova valuation by SOTP as a separate item

 

 
 

 

DRAFT Project Delphes - 23 March 2016 40 Nova valuation Cdiscount valuation Cnova valuation Via Varejo / Nova expected synergies Buyout premia analysis Appendix 1 2 3 4 5 7 17 28 40 43 47

 

 
 

 

Nova / Via Varejo expected synergies (1/2) DRAFT Project Delphes - 23 March 2016 41 Detailed initiatives EBITDA impact (2018 run rate) Synergies from new transportation model (e.g. include Cnova in VV carriers), strategic sourcing (contracts renegotiations, etc.), rationalised network and organisation, inbound freight, etc. Logistics savings expected: Between BRL83m – BRL113m (12%-16% of cost base) by 2018 Logistic rationalization BRL98m / €22m Offer Nova assortment to VV store customers: categories / products not available in-stores and services sales expected on this additional volume Additional sales expected: +BRL450m on sales and +BRL24m on services for VV by 2018 Kiosk introduction in VV stores BRL23m / €5m Increasing number of pick-up points from 419 to 650 and allowing the pick-up of all products (VV and non VV sourced) as well as products bought on another group's banner web site Additional sales expected: +5.0% for Nova by 2018 Click & Collect development BRL16m / €4m Reduction of the out-of stock rate from 17% to 9% at Nova on top 350 selling SKUs (representing half of Nova sales) between 2015 and 2018 Additional sales expected: +4.0% for Nova by 2018 Out-of stock reduction at Nova BRL10m / €2m Mutualization of advertising strategy with the same advertising expenditures: Nova will benefit from VV Television campaigns while VV will benefit from online advertising on Nova sites Additional sales expected: +0.5% for VV and +1.5% for Nova by 2018 Omnichannel Advertising BRL13m / €3m Customer litigation costs should be reduced significantly by an improved logistics service Customer litigation costs expected to decrease by 50% for Nova by 2017 Customer litigation costs decrease at Nova BRL25m / €6m Optimization of HQ costs (Finance, Commercial and B2B, HR, Customer services, Executives, etc.) No closures expected HQ costs expected to decrease by 20% by 2017 Headquarters rationalization BRL23m / €5m Nova will not benefit from cross border services sales to international suppliers any more Other existing synergies with Cdiscount should be preserved (international sourcing, best practices) Lost of sales expected: BRL4.3m of sales generated in 2015 Brazil / France ecommerce desynergies BRL(4)m / €(1)m Total BRL204m / €47m Source: M.M. Friedrich, Heilbronn & Fiszer

 

 
 

 

DRAFT WACC (0.50%) (0.25%) 0.25% 0.50% 120 118 117 115 113 3.7x 3.6x 3.6x 3.5x 3.5x Synergies' NPV Implied Multiple (x) based on run-rate Nova / Via Varejo expected synergies (2/2) Project Delphes - 23 March 2016 42 Synergies valued at ~€117m Phasing: All sources of synergies expected to be run-rate in 2018 (74% in 2017) Probability of completion: 70% WACC: Nova WACC at 17.3% Tax rate: 34% (Brazil) Estimated Cash Flow Post Tax (€m) Pre-tax synergies (€m) Synergies valuation (€m) Source: M.M. Friedrich, Heilbronn & Fiszer 6 16 22 22 2016e 2017e 2018e Norm. Dec-16 Dec-17 Dec-18 Ne t gains (€m) Logistic rationalization 9 17 23 Kiosk introduction in VV stores 1 3 5 Click & Collect development 1 2 4 Out-of stock reduction at NV 1 2 2 Omnichannel Advertising 1 3 3 Brazil / France e-commerce de-synergies (1) (1) (1) Customer litigation costs decrease at Nova 1 6 6 Headquarters rationalization 1 5 5 Total expected - pre % of completion 14 38 47 Probabi l i ty of completion 70.0% 70.0% 70.0% Total expected - post % of completion 10 26 33 Synergies ramp-up Logistic rationalization 41% 76% 100% Kiosk introduction in VV stores 17% 50% 100% Click & Collect development 20% 60% 100% Out-of stock reduction at NV 33% 100% 100% Omnichannel Advertising 33% 100% 100% Brazil / France e-commerce de-synergies 83% 100% 100% Customer litigation costs decrease at Nova 25% 100% 100% Headquarters rationalization 13% 100% 100% Total synergies ramp-up 29% 74% 100% % of completion 60% 70% 80% Synergies' NPV 100 117 133

 

 
 

 

DRAFT Project Delphes - 23 March 2016 43 Nova valuation Cdiscount valuation Cnova valuation Via Varejo / Nova expected synergies Buyout premia analysis Appendix 1 2 3 4 5 7 17 28 40 43 47

 

 
 

 

DRAFT Target Acquiror Rumour Announce ment Effective Deal value Initial stake % acquired Final stake Last day 1 m 3 m 6 m 12 m DASA Cromossomo Participacoes II - 27/04/2015 02/02/2016 €286m 72% 28% 100% 7.1% 16% 4.9% 1.2% (5.7%) Abril Educacao SA Tarpon Investimentos 30/10/2015 20/11/2015 22/12/2015 €297m 41% 35% 76% 5.0% 5.3% 5.6% 6.7% 10% Souza Cruz SA British Tobacco - 23/02/2015 15/10/2015 €2 847m 75% 22% 98% 15% 19% 27% 32% 31% COELBA Neoenergia - 16/01/2015 27/02/2015 €172m 88% 8.5% 96% 30% 29% 29% 29% 26% Autometal SA CIE-Automotive - 07/04/2014 18/09/2014 €202m 75% 25% 100% 18% 27% 24% 19% 13% COELCE ENEL 20/08/2013 14/01/2014 19/05/2014 €180m 59% 15% 74% 21% 19% 18% 12% 13% Net Servicos Embrapar - 17/10/2013 28/11/2013 €138m 90% 6.0% 96% 2.3% 3.3% 3.6% 0.2% 0.3% Confab Industrial Techint Holdings - 18/01/2012 24/04/2012 €559m 43% 53% 96% 27% 36% 38% 31% 31% Vale Fertilizantes Vale SA - 22/06/2011 24/01/2012 €911m 84% 16% 100% 35% 40% 47% 47% 43% Universo Online Folhapar 26/07/2011 30/08/2011 29/12/2011 €152m 59% 14% 73% 20% 22% 21% 20% 30% Average €621m 70% 23% 93% 18% 22% 22% 20% 18% Median €286m 75% 22% 96% 18% 19% 24% 19% 13% Max €2 847m 90% 53% 100% 35% 40% 47% 47% 43% Min €138m 41% 6.0% 74% 2.3% 3.3% 3.6% 0.2% (5.7%) Transaction premiums Project Delphes - 23 March 2016 44 Brazil & US Completed transactions i) ≥ 100m EUR deal value, ii) involving an initial stake ≥ 30%, iii) paid in cash and iv) occurring between 2011 - 2016 Sources: Company filings and official documents, Datastream, Dealogic, Mergermarket; Note I: Deal value of transactions converted into euro at the rate of exchange prevailing on the relevant rumour (if available) or announcement date; Note II: Two US transactions were excluded from final consideration as their premiums were clear outliers in the sample group: the 2016 acquisition of APR Energy by Fairfax Financial Holdings and the 2013 purchase of Clearwire Corporation by Sprint Nextel Premiums calculated by taking as the reference date either: i) when available, the rumour date (the day that news of the transaction begins to circulate around the market), ii) the announcement date of the transaction, in the event that the former cannot be clearly ascertained The premiums are computed as follows: i) Last day: the purchase premium relative to the volume-weighted average share price 1 day before the rumour or announcement date ii) 1-month, 3-month, 6- month premiums: the purchase premium offered above the volume-weighted average share price 1 month, 3 months, and 6 months before the prerumour or announcement date respectively Brazil US Target Acquiror Rumour Announce ment Effective Deal value Initial stake % acquired Final stake Last day 1 mth 3 mth 6 mth 12 mth Dole Food Co Castle & Cooke Inc - 11/06/2013 01/11/2013 €316m 40% 61% 100% 32% 33% 28% 26% 21% rue21 Apax Partners - 23/05/2013 10/10/2013 €766m 30% 70% 100% 23% 25% 34% 40% 42% Sauer-Danfoss Inc Danfoss A/S - 28/11/2012 12/04/2013 €536m 76% 24% 100% 49% 49% 47% 50% 46% Venoco Inc Timothy M. Marquez - 29/08/2011 03/10/2012 €263m 50% 50% 100% 39% 30% 8.3% (3.7%) (17%) Kenneth Cole Inc Kenneth D Cole - 24/02/2012 25/09/2012 €111m 46% 54% 100% 17% 19% 26% 32% 31% M&F Worldw ide MacAndrew s & Forbes - 13/06/2011 21/12/2011 €192m 43% 57% 100% 47% 25% 12% 6.8% 3.5% Average €364m 47% 53% 100% 35% 30% 26% 25% 21% Median €290m 45% 55% 100% 36% 28% 27% 29% 26% Max €766m 76% 70% 100% 49% 49% 47% 50% 46% Min €111m 30% 24% 100% 17% 19% 8.3% (3.7%) (17%) Date Stake Premium

 

 
 

 

DRAFT Target Acquiror Rumour Announce ment Effective Deal value Initial stake % acquired Final stake Last day 1 m 3 m 6 m 12 m NextradioTV Altice - 27/07/2015 05/02/2016 €350m 38% 62% 100% 16% 22% 26% 28% 34% Canal Plus Vivendi - 12/05/2015 12/08/2015 €522m 49% 49% 97% 29% 29% 29% 30% 32% Ciments Francais Italmobiliare 06/03/2014 20/05/2014 07/07/2015 €444m 87% 13% 100% 21% 25% 32% 38% 50% Groupe Bourbon Jaccar Holdings 16/03/2014 30/04/2014 24/07/2014 €386m 34% 22% 56% 24% 18% 16% 18% 18% APRR Eif farie 17/06/2010 30/07/2010 18/12/2012 €1 924m 82% 18% 100% 6.5% 9.7% 6.4% 3.5% 2.7% Entrepose Contracting Vinci - 10/04/2012 20/06/2012 €102m 80% 20% 100% 39% 33% 34% 38% 30% Delachaux Sogrepar 19/01/2011 20/06/2011 14/11/2011 €272m 64% 36% 100% 28% 32% 37% 41% 52% Average €571m 62% 31% 93% 23% 24% 26% 28% 31% Median €386m 64% 22% 100% 24% 25% 29% 30% 32% Max €1 924m 87% 62% 100% 39% 33% 37% 41% 52% Min €102m 34% 13% 56% 6.5% 9.7% 6.4% 3.5% 2.7% Date Stake Premium Premiums calculated by taking as the reference date either: i) when available, the rumour date (the day that news of the transaction begins to circulate around the market) ii) the announcement date of the transaction, in the event that the former cannot be clearly ascertained The premiums are computed as follows: i) Last day: the purchase premium relative to the volume-weighted average share price 1 day before the rumour or announcement date ii) 1-month, 3-month, 6- month premiums: the purchase premium offered above the volume-weighted average share price 1 month, 3 months, and 6 months before the prerumour or announcement date respectively Transaction premiums Project Delphes - 23 March 2016 45 Completed transactions i) ≥ 100m EUR deal value, ii) involving an initial stake ≥ 30%, iii) paid in cash and iv) occurring between 2011 - 2016 France Sources: Company filings and official documents, Datastream, Dealogic, Mergermarket France

 

 
 

 

DRAFT Target Acquiror Rumour Announce ment Effective Deal value Initial stake % acquired Final stake Last day 1 m 3 m 6 m 12 m Inf inis Energy plc Terra Firma Capital - 22/10/2015 17/12/2015 €242m 69% 32% 100% 40% 39% 37% 26% 11% Colt Group SA Fidelity - 19/06/2015 12/08/2015 €810m 62% 38% 100% 21% 23% 26% 29% 34% Fortune Oil plc Fortune Dynasty - 18/12/2014 09/03/2015 €142m 57% 43% 100% 58% 46% 36% 21% 3.0% WMF KKR & Co 19/06/2014 23/07/2014 20/01/2015 €188m 50% 23% 73% 14% 15% 20% 22% 25% Perform Group Access Industries - 01/09/2014 02/12/2014 €391m 43% 45% 87% 28% 24% 18% 13% 3.4% Campof rio Food Sigma Alimentos - 14/11/2013 13/06/2014 €309m 37% 63% 10C0a%sh - T1B1%C 15% 19% 23% 29% Henex UFB, SAMIC, and SPI - 21/10/2013 24/01/2014 €390m 56% 44% 100% 26% 26% 26% 27% 28% Demag Cranes Terex Corp - 30/01/2012 21/01/2014 €232m 82% 18% 100% 16% 18% 20% 17% 22% Compagnie d'Entreprises Ackermans & Van Haaren - 19/09/2013 24/12/2013 €138m 48% 12% 60% 3.6% 6.6% 3.9% 1.7% 1.2% Impregilo Salini - 06/02/2013 30/04/2013 €913m 35% 57% 92% 5.0% 4.5% 10% 17% 22% Vueling Airlines International Airlines Group - 08/11/2012 23/04/2013 €124m 46% 45% 91% 69% 80% 85% 93% 95% Brisa Tagus - 29/03/2012 13/03/2013 €584m 50% 35% 85% 17% 14% 14% 13% 3.8% Telenet Group Liberty Global - 19/09/2012 18/01/2013 €332m 50% 8.0% 58% 13% 13% 5.5% 5.3% 10% Duvel Moortgat Fibemi 12/10/2012 19/12/2012 15/01/2013 €125m 74% 26% 100% 2.4% 11% 16% 20% 23% CIMPOR Camargo Correa 20/10/2011 30/03/2012 10/01/2013 €1 010m 33% 27% 60% 10% 11% 9.4% 7.8% 8.4% Edison EDF 27/12/2011 15/02/2012 06/09/2012 €893m 81% 19% 100% 7.2% 13% 8.5% 6.0% 7.2% International Pow er GDF Suez - 29/03/2012 29/06/2012 €7 719m 70% 30% 100% 9.0% 13% 19% 22% 26% Benetton Group Edizione - 01/02/2012 30/03/2012 €147m 75% 18% 92% 14% 41% 46% 30% 11% EGL Axpo Holdings - 20/06/2011 27/02/2012 €168m 91% 9.0% 100% 22% 21% 20% 22% 22% Omega Pharma Couckinvest 27/05/2011 02/09/2011 20/12/2011 €611m 30% 70% 100% 13% 11% 8.1% 4.9% 6.2% Bulgari LVMH Moet - 07/03/2011 27/09/2011 €1 419m 67% 33% 100% 61% 61% 59% 60% 72% Medion Lenovo - 01/06/2011 23/08/2011 €271m 37% 43% 80% 19% 27% 29% 22% 20% CEPSA IPIC - 16/02/2011 26/07/2011 €4 037m 47% 53% 100% 25% 29% 39% 48% 53% Rank Group Guoco Group - 06/05/2011 18/07/2011 €224m 41% 34% 75% 2.1% 0.9% 4.3% 8.6% 14% CNP Erbe - 03/03/2011 20/06/2011 €1 501m 72% 28% 100% 23% 20% 23% 25% 28% Feintool International Franke Artemis - 17/01/2011 07/04/2011 €101m 33% 48% 81% 11% 11% 8.5% 7.3% 7.5% Average €885m 55% 35% 90% 21% 23% 23% 23% 23% Median €321m 50% 33% 100% 15% 16% 19% 22% 21% Max €7 719m 91% 70% 100% 69% 80% 85% 93% 95% Min €101m 30% 8.0% 58% 2.1% 0.9% 3.9% 1.7% 1.2% Date Stake Premium Transaction premiums Project Delphes - 23 March 2016 46 Completed transactions i) ≥ 100m EUR deal value, ii) involving an initial stake ≥ 30%, iii) paid in cash and iv) occurring between 2011 - 2016 Premiums calculated by taking as the reference date either: i) when available, the rumour date (the day that news of the transaction begins to circulate around the market) ii) the announcement date of the transaction, in the event that the former cannot be clearly ascertained The premiums are computed as follows: i) Last day: the purchase premium relative to the volume-weighted average share price 1 day before the rumour or announcement date ii) 1-month, 3-month, 6- month premiums: the purchase premium offered above the volume-weighted average share price 1 month, 3 months, and 6 months before the prerumour or announcement date respectively Rest of Europe Sources: Company filings and official documents, Datastream, Dealogic, Mergermarket; Note I: Deal value of transactions converted, when applicable, into euro at the rate of exchange prevailing on the relevant rumour (if available) or announcement date; Note II: Countries screened for transactions comprise: Austria, Belgium, Germany, Ireland, Italy, Netherlands, Portugal, Spain, Switzerland, UK Rest of Europe

 

 
 

 

DRAFT Project Delphes - 23 March 2016 47 Nova valuation Cdiscount valuation Cnova valuation Via Varejo / Nova expected synergies Buyout premia analysis Appendix 1 2 3 4 5 7 17 28 40 43 47

 

 
 

 

DRAFT Project Delphes - 23 March 2016 48 Nova valuation Cdiscount valuation Cnova valuation Via Varejo / Nova expected synergies Buyout premia analysis Appendix Additional valuation materials Brazil: macroeconomics Cnova Group: brief overview Additional information on peers' group 1 2 3 4 5 7 17 28 40 43 47 a b c d 48 54 59 65

 

 
 

 

Working Capital normalisation DRAFT Project Delphes - 23 March 2016 49 Case 1: Normative WC with instalments Nova (BRLm) Cdiscount (€m) Methodology: WC adjustments derived as the difference between NWC at December level and the monthly average. Factored receivables are excluded from the Working Capital Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 (days) Avg. 15 (days) Adj. Inventory 606 675 866 724 659 747 810 753 840 925 997 749 53 779 55 30 Receivables 540 286 224 532 516 235 343 390 270 328 888 151 7 392 18 241 o/w Traditional Receivables 540 286 224 532 516 235 343 390 270 328 888 151 392 o/w Receivable amounts sent to factoring – – – – – – – – – – – – – Payables (1,725) (1,608) (2,052) (1,833) (1,602) (1,999) (1,607) (1,589) (1,975) (1,825) (2,333) (2,574) 182 (1,893) 134 681 Other (50) 3 7 8 (19) (17) (34) (31) (0) 12 (178) (112) n.m. (34) n.m. 77 Non goods 145 163 235 243 239 258 264 243 232 226 209 203 n.m. 221 n.m. 19 Working Capital (482) (481) (720) (326) (207) (775) (224) (235) (633) (334) (417) (1,583) (535) 1,048 Receivable amounts sent to factoring – – – – – – – – – – – – – Discount factor for Dec 15 – 17% 33% 50% 67% 83% 100% Monthly receivable amounts sent to factoring in Dec 15 – – – – – – – Cumulative receivable amounts sent to factoring in Dec 15 – – – – – – – Total WC adjustments 1,048 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 (days) Avg. 15 (days) Adj. Inventory 221 213 213 230 217 224 222 213 229 262 299 241 58 232 56 (9) Receivables 135 92 95 78 83 79 74 74 99 97 85 108 23 92 19 (16) o/w Traditional Receivables 135 92 95 78 83 79 74 74 99 97 85 108 92 o/w Receivable amounts sent to factoring – – – – – – – – – – – – – Payables (474) (403) (422) (368) (336) (426) (388) (372) (426) (386) (518) (594) 143 (426) 103 168 Other 8 70 55 54 38 41 37 42 37 33 39 53 n.m. 42 n.m. (11) Non goods 11 4 (5) 2 (1) (1) (4) (13) (35) (36) (48) (85) n.m. (18) n.m. 68 Working Capital (98) (25) (65) (5) 1 (83) (58) (55) (95) (30) (143) (277) (78) 199 Receivable amounts sent to factoring – – – – – – – – – – – – – Discount factor for Dec 15 – 17% 33% 50% 67% 83% 100% Monthly receivable amounts sent to factoring in Dec 15 – – – – – – – Cumulative receivable amounts sent to factoring in Dec 15 – – – – – – – Total WC adjustments 199

 

 
 

 

Working Capital normalisation DRAFT Project Delphes - 23 March 2016 50 Case 2: Normative WC without instalments Nova (BRLm) Cdiscount (€m) Methodology: WC adjustments derived as the difference between WC at December level and the LTM average. Working capital integrating factored receivables back Adjustments for Receivables amounts sent to factoring: estimated as the amount of factored receivables to be outstanding in December (assuming receivables are paid in 6 monthly instalments on average) Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 (days) Avg. 15 (days) Adj. Inventory 606 675 866 724 659 747 810 753 840 925 997 749 53 779 55 30 Receivables 603 924 852 736 980 968 797 822 819 724 1,032 1,066 50 860 41 (206) o/w Traditional Receivables 540 286 224 532 516 235 343 390 270 328 888 151 392 o/w Receivable amounts sent to factoring 62 639 628 205 464 733 454 432 549 395 143 915 468 Payables (1,725) (1,608) (2,052) (1,833) (1,602) (1,999) (1,607) (1,589) (1,975) (1,825) (2,333) (2,574) 182 (1,893) 134 681 Other (50) 3 7 8 (19) (17) (34) (31) (0) 12 (178) (112) n.m. (34) n.m. 77 Non goods 145 163 235 243 239 258 264 243 232 226 209 203 n.m. 221 n.m. 19 Working Capital (420) 158 (91) (121) 257 (43) 230 197 (84) 61 (274) (668) (67) 602 Receivable amounts sent to factoring 62 639 628 205 464 733 454 432 549 395 143 915 1,792 Discount factor for Dec 15 – 17% 33% 50% 67% 83% 100% Monthly receivable amounts sent to factoring in Dec 15 – 76 144 274 264 120 915 Cumulative receivable amounts sent to factoring in Dec 15 – 76 220 494 758 877 1,7 9 2 Total WC adjustments 2,394 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 (days) Avg. 15 (days) Adj. Inventory 221 213 213 230 217 224 222 213 229 262 299 241 58 232 56 (9) Receivables 135 92 95 78 83 79 74 110 130 145 147 194 41 114 24 (81) o/w Traditional Receivables 135 92 95 78 83 79 74 74 99 97 85 108 92 o/w Receivable amounts sent to factoring – – – – – – – 36 31 48 63 87 22 Payables (474) (403) (422) (368) (336) (426) (388) (372) (426) (386) (518) (594) 143 (426) 103 168 Other 8 70 55 54 38 41 37 42 37 33 39 53 n.m. 42 n.m. (11) Non goods 11 4 (5) 2 (1) (1) (4) (13) (35) (36) (48) (85) n.m. (18) n.m. 68 Working Capital (98) (25) (65) (5) 1 (83) (58) (19) (64) 18 (81) (190) (56) 134 Receivable amounts sent to factoring – – – – – – – 36 31 48 63 87 198 Discount factor for Dec 15 – 17% 33% 50% 67% 83% 100% Monthly receivable amounts sent to factoring in Dec 15 – – 12 15 32 52 87 Cumulative receivable amounts sent to factoring in Dec 15 – – 12 28 60 112 19 8 Total WC adjustments 332

 

 
 

 

Nova DCF sensitivity to 2016 results (based on current trading) DRAFT Project Delphes - 23 March 2016 51 A 5% decrease of 2016e sales growth has a negative impact of ~€23m on Nova Equity A 1% decrease on expected 2016e EBITDA margin has a negative impact of ~€13m on Nova Equity 2016e Sales and EBITDA sensitivity Note: Exchange rate used for 2015: EUR1.00 = BRL 3.70 (2015 average) and from 2016 onwards: EUR 1.00= BRL4.2 (1m average as of 18/03/2016) Equity value sensitivity on 2016e metrics 2016e SALES 2016e Sales growth BRLm 2016e (10.0%) (7.5%) (5.0%) (2.5%) - 6,228 5,616 5,769 5,922 6,075 6,228 €m 1,472 1,328 1,364 1,400 1,436 1,472 2016e EBITDA 2016e EBITDA margin BRLm 2016e (2.0%) (1.5%) (1.0%) (0.5%) - 61 (63) (32) (1) 30 61 €m 14 (15) (8) (0) 7 14 2016e Sales growth Discount to DCF central value BRLm 1,459 (10.0%) (7.5%) (5.0%) (2.5%) - (2.0%) 1,176 1,221 1,265 1,310 1,354 (19%) (16%) (13%) (10%) (7%) (1.5%) 1,199 1,245 1,290 1,335 1,381 (18%) (15%) (12%) (8%) (5%) (1.0%) 1,223 1,269 1,315 1,361 1,407 (16%) (13%) (10%) (7%) (4%) (0.5%) 1,246 1,293 1,339 1,386 1,433 (15%) (11%) (8%) (5%) (2%) - 1,270 1,317 1,364 1,411 1,459 (13%) (10%) (6%) (3%) - €m (2.0%) 278 289 299 310 320 (1.5%) 284 294 305 316 326 (1.0%) 289 300 311 322 332 (0.5%) 295 306 317 328 339 - 300 311 322 334 345 2016e EBITDA margin 2016e EBITDA margin

 

 
 

 

Cdiscount – France: DCF @AO World 2016e/2017e sales growth and EBITDA mDaRrAgFinT s Project Delphes - 23 March 2016 52 Valuation as per Cdiscount France using AO World brokers projections for 2016e and 2017e sales growth and EBITDA margins All other assumptions kept as per current Cdiscount DCF Applying AO World sales growth and EBTIDA margins and extrapolating to normative year, implied EV of Cdiscount reaches €1,405m vs. €1,123m based on management business plan which represents a ~20% discount This discount has been applied to AO World 2017e EV/Sales multiple to obtain Cdiscount EV (see alternative methodology to cross check peer’s group median multiples results) Discounted Cash Flow model Enterprise Value & Equity Value WACC & PGR Sensitivity on Equity Value WACC €m 1,258 (0.5%) (0.3%) 0.3% 0.5% (1.0%) 1,157 1,101 1,050 1,001 956 (0.5%) 1,270 1,206 1,147 1,091 1,040 1,401 1,326 1,258 1,195 1,136 0.5% 1,555 1,468 1,388 1,314 1,246 1.0% 1,739 1,635 1,540 1,454 1,374 PERPETUAL GROWTH (units) HISTO. MANAGEMENT FORECASTS EXTRAPOLATION NORM. (FYE 31/12) Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Dec-25 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Net sales (€m) 1,737 2,211 2,718 3,234 3,770 4,303 4,808 5,254 5,614 5,863 5,980 Growth % (%) +27.3% +22.9% +19.0% +16.6% +14.1% +11.7% +9.3% +6.9% +4.4% +2.0% EBITDA (bef. Instalment) (€m) 13 18 63 93 131 174 223 274 326 375 417 % of Net Sales (%) 0.7% 0.8% 2.3% 2.9% 3.5% 4.1% 4.6% 5.2% 5.8% 6.4% 7.0% Instalment costs (€m) (13) (28) (32) (35) (34) (39) (44) (48) (51) (53) (54) % on Net Sales (%) (0.7%) (1.3%) (1.2%) (1.1%) (0.9%) (0.9%) (0.9%) (0.9%) (0.9%) (0.9%) (0.9%) EBITDA (€m) (0) (10) 31 58 97 135 179 227 275 322 363 % of Net Sales (%) (0.0%) (0.5%) 1.1% 1.8% 2.6% 3.1% 3.7% 4.3% 4.9% 5.5% 6.1% - D&A (€m) (21) (29) (39) (46) (59) (74) (90) (107) (124) (142) (153) % of Net Sales (%) (1.2%) (1.3%) (1.4%) (1.4%) (1.6%) (1.7%) (1.9%) (2.0%) (2.2%) (2.4%) (2.6%) EBIT (€m) (21) (39) (9) 13 38 62 89 120 151 180 210 % of Net Sales (%) (1.2%) (1.8%) (0.3%) 0.4% 1.0% 1.4% 1.9% 2.3% 2.7% 3.1% 3.5% - Normative tax rate (€m) - - (4) (13) (21) (31) (41) (52) (62) (72) % normative tax rate (%) 34.4% 34.4% 34.4% 34.4% 34.4% 34.4% 34.4% 34.4% 34.4% 34.4% 34.4% + Use of tax credits - - 4 12 - - - - - - + D&A (€m) 21 29 39 46 59 74 90 107 124 142 153 % on Net Sales (%) 1.2% 1.3% 1.4% 1.4% 1.6% 1.7% 1.9% 2.0% 2.2% 2.4% 2.6% - CAPEX (€m) (43) (50) (63) (75) (89) (103) (116) (129) (140) (150) (153) % on Net Sales (%) (2.5%) (2.3%) (2.3%) (2.3%) (2.4%) (2.4%) (2.4%) (2.5%) (2.5%) (2.6%) (2.6%) - Change in Normative WC (€m) 24 73 45 50 36 36 34 30 24 17 8 % on Net Sales (%) 1.4% 3.3% 1.7% 1.5% 1.0% 0.8% 0.7% 0.6% 0.4% 0.3% 0.1% WC % on Net Sales (4.5%) (6.1%) (6.4%) (6.7%) (6.7%) (6.7%) (6.7%) (6.7%) (6.7%) (6.7%) (6.7%) Free cash flows (€m) 12 13 33 43 47 66 87 108 126 145 As of 01/01/2016 €m % NPV (2016e-2024e FCFs) 327 23% Terminal value 1,078 77% ENTERPRISE VALUE 1,405 100% ENTREPRISE VALUE (Cdiscount) 1,123 Impl ied discount (20%) 2017e EV/Sales 0.52x 2017e EV/EBITDA (post instalments) 45.7x - EvEq Adjustments (147) EQUITY VALUE 1,258

 

 
 

 

DRAFT Project Delphes - 23 March 2016 Nova’s preliminary vs. restated accounts: adjustments from Brazil internal review €48m adjustments on historical financial statements assumed to not impact valuation which is based on future cash flow generation 53 Adjustments as of 21/03/2016. Auditors review still ongoing – final adjustments to be provided P&L and Balance Sheet adjustments based on auditors’ Brazil internal review to date In €m unless otherwise stated. Sign: Debit / (Credit) Previous Years 2013 2014 2015 Cumulative P&L Adjustments Forced sales Net sales 9.7 (5.7) 12.9 16.2 33.1 Forced sales Fulfillment costs (1.1) (4.1) 0.5 (4.7) (9.4) Forced sales COGS (8.2) 6.1 (4.6) 4.0 (2.7) Inventory provision COGS - - 1.6 11.3 12.9 Suppliers COGS 16.9 (0.1) 2.9 0.2 19.9 Total P&L Adjustments 17.3 (3.7) 13.2 27.0 53.7 Total P&L Adjustments (BRLm) 46.8 (10.7) 41.1 99.9 177.1 FX BRL/EUR 2.70 2.87 3.12 3.70 3.70 Cumulative adjustments @ 2015 FX (€m) 47.9 Cumulative adjustments (BRLm) 177.1 Balance Sheet Adjustments Forced sales Accounts receivable (0.4) 3.6 (8.7) (15.4) (20.9) Inventory provision Inventory - - (1.6) (11.3) (12.9) Suppliers Trade payables (16.9) 0.1 (2.9) (0.2) (19.9) Total B/S Adjustments (17.3) 3.7 (13.2) (27.0) (53.7) Total P&L Adjustments (BRLm) (46.8) 10.7 (41.1) (99.9) (177.1) FX BRL/EUR 2.70 2.87 3.12 3.70

 

 
 

 

DRAFT Project Delphes - 23 March 2016 54 Nova valuation Cdiscount valuation Cnova valuation Via Varejo / Nova expected synergies Buyout premia analysis Appendix Additional valuation materials Brazil: macroeconomics Cnova Group: brief overview Additional information on peers' group 1 2 3 4 5 7 17 28 40 43 47 a b c d 48 54 59 65

 

 
 

 

DRAFT Source: IMF World Economic Outlook Database, Oct. 2015; * Average of period Brazil (1/2) Project Delphes - 23 March 2016 55 Macroeconomic indicators Inflation rate (%)* Current account balance (% of GDP) Real GDP growth (%) Gross government debt (% of GDP) Source: Banco Central do Brasilia Source: IMF World Economic Outlook Database, Oct. 2015 Source: IMF World Economic Outlook Database, Oct. 2015 5.0% 6.6% 5.4% 6.2% 6.3% 8.9% 6.3% 5.2% 5.0% 4.8% 4.6% 2010a 2011a 2012a 2013a 2014a 2015e 2016e 2017e 2018e 2019e 2020e 63.0% 61.2% 63.5% 62.2% 65.2% 69.9% 74.5% 75.8% 76.5% 76.7% 76.1% 2010a 2011a 2012a 2013a 2014a 2015e 2016e 2017e 2018e 2019e 2020e (3.5%) (2.8%) (3.5%) (3.8%) (4.4%) (4.0%) (3.8%) (3.8%) (3.8%) (3.8%) (3.8%) 2010a 2011a 2012a 2013a 2014a 2015e 2016e 2017e 2018e 2019e 2020e 7.5% 3.9% 1.9% 3.0% 0.1% (3.8%) (3.4%) 0.4% 1.6% 2.0% 1.8% 2010a 2011a 2012a 2013a 2014a 2015a 2016e 2017e 2018e 2019e 2020e

 

 
 

 

DRAFT Source: IMF World Economic Outlook Database, Oct. 2015; * % of total labour force Brazil (2/2) Project Delphes - 23 March 2016 56 Macroeconomic indicators Unemployment rate (%)* Nominal GDP per capita (in USDk)* 10-year benchmark yield (LCL) SELIC rate (%) Source: Datastream Source: Business Monitor International Source: IMF World Economic Outlook Database, Oct. 2015; * Data are derived by 1st converting GDP in national currency to USD and then dividing it by total population 14.3% 15.0% 13.0% 11.0% 10.5% 10.0% 9.5% 9.0% 8.5% 8.0% 8.0% 2015a 2016e 2017e 2018e 2019e 2020e 2021e 2022e 2023e 2024e 2025e 6.8% 6.0% 5.5% 5.4% 4.8% 6.6% 8.6% 8.9% 8.4% 7.6% 6.8% 2010a 2011a 2012a 2013a 2014a 2015e 2016e 2017e 2018e 2019e 2020e 11.3 13.2 12.1 11.9 11.6 8.8 8.1 8.5 8.9 9.3 9.7 2010a 2011a 2012a 2013a 2014a 2015e 2016e 2017e 2018e 2019e 2020e 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 03/2010 03/2011 03/2012 03/2013 03/2014 03/2015 03/2016

 

 
 

 

DRAFT Source: IMF World Economic Outlook Database, Oct. 2015 Brazil among other Latam countries Project Delphes - 23 March 2016 57 Macroeconomic indicators Inflation rate (%): Brazil inflation running 2nd in the pack Brazil Consumer & Business confidence: no sustained growth recovery expected without improvement in confidence Real GDP growth (%): growth is down from days of commodity price boom Current account deficits (% of GDP): significant current account deficits across Latam Source: IMF World Economic Outlook Database, Oct. 2015 (Jan 2016 update for Brazil GDP 2016-17 growth forecast) Source: IMF World Economic Outlook Database, Oct. 2015 Source: FGV, Macrobond, BNP Paribas (4%) (2%) - 2% 4% 6% 8% Brazil Argentina Peru Colombia Chile Mexico 2003-2014 avg growth 2015-2016 avg growth forecast 2017-2020 avg growth forecast - 1% 2% 3% 4% 5% 6% 7% Brazil Argentina Peru Colombia Chile Mexico 2014 2015 2016 2017 -2% 3% 8% 13% 18% 23% 28% 2007a 2008a 2009a 2010a 2011a 2012a 2013a 2014a 2015e 2016e Brazil Argentina Peru Colombia Chile Mexico

 

 
 

 

DRAFT 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50 2006a 2007a 2008a 2009a 2010a 2011a 2012a 2013a 2014a 2015a 2016e 2017e 2018e 2019e 2020e 2021e 2022e 2023e 2024e 2025e Business Monitor International (BMI) Economist Intelligence Unit (EIU) Central Bank of Brazil (BCB) BNPP 2025e FX forecast: BMI: 0.20 EIU: 0.18 2006a FX rate: BMI: 0.35 EIU: 0.36 BCB final year FX projection (2020e): 0.18 BNPP final year FX projection (2020e): 0.15 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50 2006a 2007a 2008a 2009a 2010a 2011a 2012a 2013a 2014a 2015a 2016e 2017e 2018e 2019e 2020e 2021e 2022e 2023e 2024e 2025e Business Monitor International (BMI) Economist Intelligence Unit (EIU) Central Bank of Brazil (BCB) BNPP 2006a FX rate: BMI: 0.37 EIU: 0.37 2025e FX forecast: BMI: 0.18 EIU: 0.18 BCB final year FX projection (2020e): 0.18 BNPP final year FX projection (2020e): 0.15 Brazilian real (BRL) to euro (EUR) exchange rate evolution (2006 – 2025) Project Delphes - 23 March 2016 58 Since BRL/EUR FX figures from the Economist Intelligence Unit (EIU) are not presently forthcoming, they have been indirectly derived by multiplying together the available BRL/USD and USD/EUR datasets Similarly, the Central Bank of Brazil only provides forecast estimates for BRL/USD. BRL/EUR figures have thus been approximated by multiplying the existing BRL/USD forward figures with the EIU’s USD/EUR dataset (the latter used in all indirect conversions for purposes of consistency) Figures from 2006-2015 feature actual historical data, while figures for the period 2016-2025 are projections BRL/EUR average annual FX 1: FX quote issued by the Central Bank of Brazil Sources: Business Monitor International (BMI), BNPP, Central Bank of Brazil, Economist Intelligence Unit (EIU) BRL/EUR end-of-period annual FX BRL/EUR BRL/EUR FX as of 23.02.20161: 0.23 FX as of 23.02.20161: 0.23

 

 
 

 

DRAFT Project Delphes - 23 March 2016 59 Nova valuation Cdiscount valuation Cnova valuation Via Varejo / Nova expected synergies Buyout premia analysis Appendix Additional valuation materials Brazil: macroeconomics Cnova Group: brief overview Additional information on peers' group 1 2 3 4 5 7 17 28 40 43 47 a b c d 48 54 59 65

 

 
 

 

DRAFT (FYE 31/12 - €m)(3) 2014 2015 Market value (€m) 18/03/16 Sales 3,454 3,420 Share price ($) 2.5 Growth % -1.0% Share price (€) 2.2 EBITDA 65 (129) Shares outstanding (m) 441.3 Sales % 1.9% (3.8%) Market capitalisation ($m) 1,094 EBIT 33 (167) Market capitalisation (€m) 969 Sales % 1.0% (4.9%) Net debt (12/15) (254) Net income (54) (266) Sales % (1.6%) (7.8%) Other adj. (12/15) (32) Firm Value (FV) 1,130 Shareholders Casino Guichard Perrachon 43% GPA 26% Via Varejo 22% Free Float 9% 2015 GMV by product(1) NWC seasonality cash adj. (12/15) 447 2015 revenue by geography France 51% Other 1% Brasil 48% Consumer electronics 32% Home appliances 26% Computers 14% Home furnishing 14% Personal goods 6% Leisure 4% Other 4% Project Delphes - 23 March 2016 Cnova Group Headquarters Amsterdam, Netherlands Management • Peter Estermann, Chairman • Emmanuel Grenier, CEO (since Jan.’16) • Vitor Faga de Almeida, Executive Vice President & CFO 60 One of the largest global e-commerce companies ▪ Created in 2014, Cnova is an e-commerce company which includes Cdiscount (France) and Nova Pontocom (Brazil) ▪ The company offering encompasses mainly electronics & home appliances, services, delivery and payment solutions ▪ Operating in 7 countries ▪ 14.9m active customers in 2015 ▪ 1.7bn visits and 66.9m items sold in 2015 ▪ 21,916 click & collect pick-up points as of 31/12/15 ▪ 2015 GMV of €4.8bn ▪ Marketplace representing 20.5% of GMV in 2015 ▪ ~5,500 employees ▪ Listed on NASDAQ (since November 2014) and EURONEXTParis (since January 2015) Overview Key financials (€m) Geographical footprint Source: Company, Press, Datastream; Note: (1) Split based on 9M 2014 split and total excluding taxes; (2) Other includes activities in Belgium, Colombia, Ivory Coast, Senegal, Cameroon, Thailand and Vietnam; (3) Based on Cnova 6K (24/02/2016) €4.8bn €3.4bn (2) Vietnam Belgium France Cameroon Senegal Ivory Coast Brazil Colombia Date of market entry: 1998 2008 2014 To be sold

 

 
 

 

DRAFT Project Delphes - 23 March 2016 Cdiscount 61 One of the leaders in e-commerce in France, #2 behind Amazon 0.9 1.0 1.2 1.3 1.6 1.9 2.3 2.7 0.8 0.9 1.0 1.1 1.3 1.4 1.6 1.8 2008 2009 2010 2011 2012 2013 2014 2015 GMV Net sales Headquarters Bordeaux, France Management ▪ Emmanuel Grenier, CEO ▪ Stéphane Brunel, CFO ▪ Launched in 1998, Cdiscount directly sells a diverse array of products and supports a marketplace where thousands of sellers offer their own products ▪ Cdiscount marketplace represents 27.5% of GMV as of 31/12/2015 ▪ Fully integrated storage and logistics network ▪ 11 warehouses with a total of 326,000 sqm storage capacity ▪ >400 pick-up points for large parcels within Casino stores ▪ Mobile contribution (Q4 2015): 48% on traffic ▪ 760m visits in 2015 ▪ 28.5% market share in France(1) ▪ >1,200 employees Overview More than 19,100 pick-up points in France Source: Company; Notes: (1) Market share in the high-tech, IT & appliances sectors (GFK); (2) Based on public information; (3) Based on GFK study on technical goods for 01/2016 (consumer electronics, IT products & home appliances). Home appliances = small & large household appliances; Consumer electronics= TV-Video, camera, sound, phones; IT products = computers, laptops, printers, tablets Key financials(2) (€bn) 2015 market share in France (3) Outsourced location for large products Group Casino locations for large products Includes 593 pick-up points for large goods 34.4% 41.5% E-commerce Home appliances

 

 
 

 

DRAFT 0.2 0.4 1.1 1.5 1.5 1.7 2.2 2.1 0.2 0.4 1.0 1.4 1.4 1.5 1.9 1.7 2008 2009 2010 2011 2012 2013 2014 2015 GMV Net sales Headquarters São Paulo, Brazil Management ▪ Flavio Dias, CEO Cnova Brazil Market share in Brazil (as of 09/2015) Company portfolio Project Delphes - 23 March 2016 Nova Brazil 62 #2 in Brazil behind B2W ▪ Nova operates several e-commerce platforms in Brazil, including Extra, Casa Bahia, Ponto Frio and Cdiscount ▪ Extensive product assortment incl. home appliances, consumer electronics, home furnishings and personal goods ▪ Extra includes a marketplace which represents 10.8% of GMV as of 31/12/2015 ▪ Fully integrated storage and logistics network ▪ 6 warehouses with a total of c.300,000 sqm storage capacity ▪ Mobile contribution (Q4 2015): 31.1% on traffic ▪ Nova offers interest-free payments through installments for certain products and promotion campaigns ▪ 904m visits in 2015 ▪ >4,000 employees Overview 210 pick up locations Source: Company Note: (1) Based on public information Key financials(1) (€bn) Wholesale Retail Belo Horizonte Curitiba Sao Paulo Rio de Janeiro Goiânia Brasília Alagoas Acre Rondônia Amazonas Ceará Pará Brazil Maranhão Piaui Rio Grande de Norte Paraíba Pernambuco Sergipe Bahia Espirito Santo Bolívia Paraguai Asunción Argentina Buenos Aires Uruguay Montevideo Extra (775 stores) Pontofrio (361 stores) Casas Bahia (611 stores) Opportunity to expand to c.1,200 pick-up points based on GPA / Via Varejo store network 26% 21% Other 53%

 

 
 

 

DRAFT Project Delphes - 23 March 2016 Marketplaces: a key element of Cnova business model 63 Number of product offering (m) Source: Company Cnova Brazil marketplace as % of GMV Number of sellers (‘000) Cdiscount marketplace as % of GMV 1% 6% 13% 22% 27% 12/11 12/12 12/13 12/14 12/15 1 1 1 2 2 3 4 5 6 7 8 10 11 10 1 1 2 4 5 6 8 10 12 12 16 20 26 28 1% 5% 6% 16% 03/14 12/14 03/15 12/15

 

 
 

 

DRAFT Top ten buyers Investment Style Rank Institution Dec-15 % of S/O % of F/F IPO Net change Investment Style Country 1 INVESCO Asset Management, LTD (U.K.) 2,901,000 0.66% 9.94% 0 2,901,000 GARP United Kingdom 2 Ratio Capital Management BV 2,780,000 0.63% 9.53% 0 2,780,000 Alternative Netherlands 4 Oddo Meriten Asset Management S.A. 2,168,500 0.49% 7.43% 0 2,168,500 Value France 5 Fidelity Management & Research Company 1,956,600 0.44% 6.70% 0 1,956,600 GARP United States 7 Ledbury Capital Partners, LLP 1,187,200 0.27% 4.07% 0 1,187,200 Alternative United Kingdom 8 Sylebra Capital Management 1,170,800 0.27% 4.01% 0 1,170,800 Alternative Hong Kong 10 Boussard & Gavaudan Investment Management, LLP 767,900 0.17% 2.63% 0 767,900 Value United Kingdom 6 Carmignac Gestion 1,730,600 0.39% 5.93% 1,000,000 730,600 Growth France 11 La Banque Postale Asset Management 585,700 0.13% 2.01% 0 585,700 Growth France 12 Exane Asset Management S.A. 497,700 0.11% 1.71% 0 497,700 Value France Total 15,746,000 3.57% 53.96% 1,000,000 14,746,000 Top ten sellers Rank Institution Dec-15 % of S/O % of F/F IPO Net change Investment Style Country -- Emerging Sovereign Group, LLC 0 0.00% 0.00% 4,000,000 -4,000,000 Alternative United States -- Moore Capital Management, L.P. 0 0.00% 0.00% 2,000,000 -2,000,000 Alternative United States -- Federated Global Investment Management Corporation 0 0.00% 0.00% 2,000,000 -2,000,000 Aggr. Growth United States 3 TIAA-CREF Investment Management 2,744,200 0.62% 9.40% 4,000,000 -1,255,800 Growth United States -- SPX Gestão de Recursos, LTDA 0 0.00% 0.00% 1,000,000 -1,000,000 Alternative Brazil -- Explorador Capital Management, LLC 0 0.00% 0.00% 700,000 -700,000 Alternative Argentina -- Alyeska Investment Group, L.P. 0 0.00% 0.00% 600,000 -600,000 Alternative United States -- Marshall Wace North America, L.P. 0 0.00% 0.00% 600,000 -600,000 Alternative United States -- OZ Management, L.P. 0 0.00% 0.00% 600,000 -600,000 Alternative United States -- UBS O'Connor, LLC 0 0.00% 0.00% 400,000 -400,000 Alternative United States Total 2,744,200 0.62% 9.40% 15,900,000 -13,155,800 30.7% 28.6% 16.4% 16.2% 8.1% All Buyers by region Continental Europe UK & Ireland Netherlands North America Rest of World -1.7% -0.9% -0.2% -82.7% -14.5% All Sellers by region Cnova shareholding rotation since IPO Project Delphes - 23 March 2016 64 Cnova free float has significantly changed since IPO Based on December 2015 IPREO data, rotation over free float has been significant since IPO (see appendix) 9 out of the top 10 shareholders are new shareholders (all of them except Carmignac Gestion) More than 53 institutional investors divest their entire position in Cnova since IPO (i.e. representing 13.9m shares or 51% of Cnova free float)

 

 
 

 

DRAFT Project Delphes - 23 March 2016 65 Nova valuation Cdiscount valuation Cnova valuation Via Varejo / Nova expected synergies Buyout premia analysis Appendix Additional valuation materials Brazil: macroeconomics Cnova Group: brief overview Additional information on peers' group 1 2 3 4 5 7 17 28 40 43 47 a b c d 48 54 59 65

 

 
 

 

Cnova: analysts’ peers selection while using the trading multiples methodologDyR AFT Project Delphes - 23 March 2016 66 30/12/2014 P P P O O P P O O O O O O O O O na 30/12/2014 P P P P P O O O O O P P P P O O Boohoo 30/12/2014 P P P P P P O P P P P P P O P P na 01/01/2015 P O O P P P P P P P P P P P P P 58.com, Grubhub, Blue Nile, shutterfly, Start Today, eLong, Expedia, HomeAway, Ctrip, Orbitz, MakeMyTrip, Priceline, Travelzoo 06/01/2015 P P P P P O P P O O P P P P P O Google, Facebook, Jumei, CDON Group ONLINE RETAIL MARKETPLACE OTHERS

 

 
 

 

DRAFT Project Delphes - 23 March 2016 67 Company profiles Source: Company, Datastream (1) Calendarised data as of 31/12 Nova peers (1/2) Sales 95 036 g g Jef f Bezos 18% EBITDA 7 562 g Capital Group Companies 7% % margin 8.0% Net income 529 % margin 0.6% g Net debt / (cash) (3 095) ND / EBITDA -- Market cap 235 347 Sales 24 825 g g Hillhouse Capital Mgmt 11% EBITDA (686) g DST Investment Mgmt % margin (2.8%) g Tiger Global Mgmt 10% Net income (1 285) g ~ 99,000 sellers % margin (5.2%) g ~105,000 employees 5% Net debt / (cash) (1 848) ND / EBITDA -- Market cap 39 101 Sales 5 505 g g Tiger Global Mngt 10% EBITDA 355 g T. Row e Price Group 5% % margin 6.4% g SC China Holding 5% Net income 218 g % margin 4.0% Net debt / (cash) (107) g Over 8,500 brands partners ND / EBITDA -- g 24.6m new active customers in 2015 Market cap 6 213 Leading online discount retailer in China providing special of fers and deep discount on branded products Multi-category retailer: appareil, comestics, footw ear, home goods COMPANY GEOGRAPHICAL FOOTPRINT KEY FIGURES(1) (2015, €m) BUSINESS PROFILE SHAREHOLDERS BUSINESS PROFILES E-commerce company selling a w ide range of products and services including electronics, apparel, furniture, health & beauty, etc. Operates both as a retailer and a marketplace, also of fers services and operates a publishing activity Online direct sales company of fering electronics, home appliances, audio and books products E-commerce 98% Marketplace 2% Marketplace 65% E-commerce 35% Online direct sales 93% Services and others 7% Source: Broker report

 

 
 

 

DRAFT Project Delphes - 23 March 2016 68 Company profiles Source: Company, Datastream (1) Calendarised data as of 31/12 Nova peers (2/2) Sales 2 228 g g Lojas Americanas 56% EBITDA 153 g 5% % margin 6.9% Net income (86) % margin (3.9%) Net debt / (cash) 1 081 ND / EBITDA 7.1x Market cap 813 g 27% marketshare in Brazil Sales 1 380 g g Invesco 35% EBITDA (9) g Morgan Stanley 3% % margin (0.7%) Net income (17) g % margin (1.2%) Net debt / (cash) (57) ND / EBITDA -- Market cap 499 Leading e-commerce company in China of fering fashion, apparel, baby, maternity, home and lifestyle products Also operates a marketplace program w ith c. 5,000 registered sellers COMPANY Operates in the follow ing areas: - e-commerce - consumer f inance platforms - technology & logistics platforms - distribution & customer service - marketplace KEY FIGURES(1) (2015, €m) BUSINESS PROFILE Massachussetts Mutual Life Insurance SHAREHOLDERS BUSINESS PROFILES GEOGRAPHICAL FOOTPRINT Online direct sales 96% Marketplace ~4% Marketplace 8% E-commerce 92%

 

 
 

 

DRAFT Broker Date CURRENCY WACC g Normative year Credit Suisse 29/01/2016 USD 10.5% 3.0% 2021 Jefferies 29/01/2016 USD 12.0% 4.0% 2026 Cantor Fitzgerald 28/01/2016 USD 10.0% 3.0% 2021 AVERAGE 10.8% 3.3% 2023 UBS 26/01/2016 USD 12.1% Nomura 22/01/2016 USD 10.7% 3.0% Suntrust Robinson Humphrey 22/01/2016 USD 10.0% 4.0% 2024 Jefferies 18/01/2016 USD 13.1% 4.0% 2025 Everbright Securities 03/12/2015 USD 9.1% 2.0% AVERAGE 11.0% 3.3% 2025 Morgan Stanley 29/02/2016 USD 14.0% 4.0% 2026 Nomura 29/02/2016 USD 11.3% 4.0% UBS 26/02/2016 USD 10.7% Macquarie 26/02/2016 USD 11.6% 1.2% 2021 BNP Paribas Group 26/02/2016 USD 12.0% 3.0% AVERAGE 11.9% 3.1% 2024 Crédit Suisse 31/01/2016 BRL 10.5% 8.0% 2026 JP Morgan 28/01/2016 BRL 15.7% 8.0% 2026 Santander 11/06/2015 BRL 4.0% Deutsche Bank 27/05/2015 BRL 14.4% 3.0% Votorantim Corretora 15/04/2015 BRL 12.0% 6.0% AVERAGE 13.2% 5.8% 2026 Morgan Stanley 24/12/2015 USD 15.0% 4.0% HSBC 03/09/2015 USD 21.4% 5.0% Credit Suisse 10/06/2015 USD 12.0% 3.0% Barclays 01/06/2015 USD 17.4% 3.0% AVERAGE 16.5% 3.8% - AVERAGE 12.6% 4.0% 2024 MEDIAN 12.0% 4.0% 2025 WACC Consensus – Nova peers Project Delphes - 23 March 2016 69 Source: Brokers

 

 
 

 

DRAFT Project Delphes - 23 March 2016 Brokers’ valuation methodology 70 Analysts mainly using DCF to value Nova’s peers COMPANY # OF BROKERS ANALYZED METHODOLOGY 1 % METHODOLOGY 2 % METHODOLOGY 3 % 9 Mul tiples (incl . EV/sales, EV/EBITDA, EV/FCF, EV/GMV, EV/GP, P/E) 100% DCF 44% Long-term CSOI(1) margins 11% 10 DCF 70% Multiples (incl. P/Sales, EV/Sales, EV/EBITDA, EV/FCF, P/E) 40% 11 Mul tiples (incl . P/E, PEG, EPADS) 55% DCF 55% 9 DCF 89% Multiples (incl. EV/Sales, EV/EBITDA) 33% DANGDANG 6 DCF 67% Multiples (Incl. P/E, PER) 33% Main methodologies used Source: Brokers Note: Consolidated Segment Operating Income

 

 
 

 

DRAFT Project Delphes - 23 March 2016 71 Company profiles Source: Company, Datastream (1) Calendarised data as of 31/12 Cdiscount’s peers Sales 720 g g Roberts John Charles 26% EBITDA 0.2 g Caunce Stephen James 12% % margin 0.0% g Also operating logisitcs services g Baron Capital Group 7% Net income (11) g g Odey Asset Mgmnt 7% % margin (1.6%) g Bamco 6% Net debt / (cash) (41) ND / EBITDA -- Market cap 930 Sales 721 g g RAG-Stif tung 14% EBITDA 13 g Capital Group Companies 13% % margin 1.8% g Ruane Cunnif f & Goldfarb 10% Net income 8 g > 8,000 items g Deutsche Bank 7% % margin 1.1% g ~4m active customers Net debt / (cash) (44) g ND / EBITDA -- Market cap 790 Sales 443 g g Dayan family 40% EBITDA 24 g Accel Partners 9% % margin 5.4% g Kilw a Investment 7% Net income 5 g Flash-sale fashion marketplace g Axa Investment 5% % margin 1.2% g > 1,500 brands Net debt / (cash) (119) g > 25m registered members ND / EBITDA -- Market cap 571 Sales 344 g g Seppala Samuli 50% EBITDA 12 g Rite Ventures 10% % margin 3.6% g 5% Net income 9 g % margin 2.6% Net debt / (cash) (26) g ND / EBITDA -- Market cap 340 Leading online fashion retailer in Europe, both through mobile apps and w ebsites Retailer of computer technology, consumer electronics, toys and navigation products Ilmarinen Mutuel Pension Insurance ~ 50,000 dif ferent products in 26 main categories Operates through of f line and online stores Europe's leading online pet supplies retailer through tw o banners: Zooplus and Bitiba COMPANY KEY FIGURES(1) (2015, €m) BUSINESS PROFILE SHAREHOLDERS BUSINESS PROFILES GEOGRAPHICAL FOOTPRINT 3.4% pet supplies marketshare in Europe 13% marketshare of UK of domestics appliances market Online retailer of domestic appliances and audio visual products Marketplace 15% Online direct sales 81% Logistics 4% Fashionrelated 60% Other 40% Pet food 77% Accessories 23% na

 

 
 

 

DRAFT Project Delphes - 23 March 2016 72 Company profiles Source: Company, Datastream (1) Calendarised data as of 31/12 Cdiscount’s peers Sales 235 g g 21% EBITDA (7) % margin (2.8%) g Arepo Bz 21% Net income (11) g E-commerce: % margin (4.6%) - SaldiPrivate (online direct sales) Net debt / (cash) (25) - ePrice (marketplace) ND / EBITDA 3.7x g Media Market cap 167 Sales 559 g g Kinnevik Investment 29% EBITDA (9) g Sw edbank 15% % margin (1.6%) g g Oppenheimer Funds 5% Net income (11) % margin (2.0%) Net debt / (cash) (9) g ND / EBITDA 1.1x Market cap 129 g ~4.2m active customers COMPANY GEOGRAPHICAL FOOTPRINT KEY FIGURES(1) (2015, €m) BUSINESS PROFILE SHAREHOLDERS PRODUCT BREAKDOWN #1 Italian e-commerce player primarily of fering electronics, appliances and apparel through 2 business divisions Ainio Paolo Guglielmo Luigi Wide range of products f rom consumer electronics, appliances, leisure, toys, apparel, beauty, food Leading e-commerce group in the Nordic region through 9 online stores Also operated payment and f inancial services Electronics 46% Appliances 19% Apparel & other 25% Services 10% Electronics 38% Toys & children 10% Clothes & accessories 39% Home appliances 13%

 

 
 

 

WACC Consensus – CDiscount peers DRAFT Project Delphes - 23 March 2016 73 Broker Date CURRENCY WACC g Normative year Credit Suisse 29/01/2016 USD 10.5% 3.0% 2021 Jefferies 29/01/2016 USD 12.0% 4.0% 2026 Cantor Fitzgerald 28/01/2016 USD 10.0% 3.0% 2021 AVERAGE 10.8% 3.3% 2023 JP Morgan 21/07/2015 GBP 10.0% Panmure Gordon & Co 07/07/2015 GBP 9.5% 2.0% 2025 AVERAGE 9.8% 2.0% 2025 Inderes 15/02/2016 EUR 8.8% 2026 AVERAGE 8.8% - ESN 02/10/2015 EUR 9.3% 2025 Banco Profilo 23/03/2015 EUR 7.6% 2.0% 2019 AVERAGE 8.5% 2.0% 2022 Exane 09/12/2015 EUR 10.9% 3.0% 2020 UBS 07/01/2016 EUR 9.0% 2.5% 2025 Societe Generale 17/02/2016 EUR 8.5% 0.0% 2025 AVERAGE 9.5% 1.8% 2023 SEB Equities 18/01/2016 SEK 8.0% 2036 AVERAGE 8.0% - 2036 Oddo 29/01/2016 EUR 7.7% 2.0% 2024 AVERAGE 7.7% 2.0% 2024 AVERAGE 9.4% 2.4% 2024 MEDIAN 9.3% 2.5% 2025 Source: Brokers

 

 
 

 

DRAFT Project Delphes - 23 March 2016 Brokers’ valuation methodology 74 Analysts mainly using DCF and multiples (EV/sales, EV/EBIT) to value Cdiscount’s peers COMPANY # OF BROKERS ANALYZED METHODOLOGY 1 % METHODOLOGY 2 % METHODOLOGY 3 % METHODOLOGY 4 % 4 DCF 50% EV/sales 25% PER 25% 3 DCF 33% EV/sales 33% P/E 33% 1 EV/EBIT 100% PER 100% 1 DCF 100% EVA 100% Mul tiples 100% 4 DCF 75% Mul tiples (incl . EV/sales, EV/EBITDA, EV/EBIT, P/E) 75% Sales model 25% Cohort analysis 25% 3 DCF 67% Mul tiples (incl . EV/sales, EV/EBIT) 67% Main methodologies used Source: Brokers

 

 
 

 

DRAFT Project Delphes - 23 March 2016 75 This presentation has been prepared by BNP PARIBAS for informational purposes only. Although the information contained in this presentation has been obtained from sources which BNP PARIBAS believes to be reliable, it has not been independently verified and no representation or warranty, express or implied, is made and no responsibility is or will be accepted by BNP PARIBAS as to or in relation to the accuracy, reliability or completeness of any such information. Opinions expressed herein reflect the judgement of BNP PARIBAS as of the date of this presentation and may be subject to change without notice if BNP PARIBAS becomes aware of any information, whether specific or general, which may have a material impact on any such opinions. BNP PARIBAS will not be responsible for any consequences resulting from the use of this presentation as well as the reliance upon any opinion or statement contained herein or for any omission. This presentation is confidential and may not be reproduced (in whole or in part) nor summarised or distributed without the prior written permission of BNP PARIBAS. © BNP PARIBAS. All rights reserved.