Mr Bricolage — Interim / Quarterly Report 2013

Nov 7, 2013

9M 2013 turnover

A fine summer for the DIY market in France

• › Q3 positive with +1.3%
• › End-September cumulative total down 2.6% (source Banque de France)

Networks business in France (on a like-for-like store basis) holds up

• › Q3 shows a rise of +3.0%
• › End-September cumulative total stood at -1.4%

Networks business abroad buoyed by store openings

› Increase of +3.5% in 9 months (total-store basis)

Group consolidated turnover at 30 September 2013

• › Growth of +4.0% at Q3
• › End-September cumulative turnover of €422.4 million (down 1.3%)

"As we had expected, our Group benefited from the distinctly more favourable market conditions this summer. Our networks have outperformed the market but we remain cautious until the end of the year. Regardless of these changes, we are steadfastly focused on our priorities, to build a sustainable positive dynamic for the entire Group." commented Jean-François Boucher, Chairman and Chief Executive Officer of Mr Bricolage SA.

Change in consolidated turnover at 30 September 2013

Pre-tax turnover (€ million)	Q3 2013	% change Q3 2013-Q3 2012	30/09/2013	30/09/2012	% change 30/09/2013- 30/09/2012
Retail	100.5	+3.0%	283.2	285.2	-0.7%
Sales in Directly-owned Stores	96.0	-0.5%	269.9	284.0	-5.0%
BtoC online sales (1)	4.6	-	13.3	1.2	-
Network services	45.0	+6.2%	139.2	142.6 (2)	-2.4%
Total consolidated turnover	145.5	+4.0%	422.4	427.8 (2)	-1.3%

(1) Le Jardin de Catherine company, which runs the e-commerce sites le-jardin-de-catherine.com, la-maison-de-catherine.com and mr-bricolage.fr, was consolidated as from 1 September 2012

(2) Restated consolidated 2012 turnover (see details in "Network services" business)

With the more propitious climate seen in July and August, the Group recorded a growth of +4.0% in the 3rd quarter, buoyed by the momentum of the online sales.

Over 9 months, the Group's turnover totalled €422.4 million, compared to €427.8 million at 30 September 2012.

"Retail" business: turnover of €283.2 million at 30 September 2013

Change in Directly-owned Stores turnover

Pre-tax turnover (€ million)	30/09/13	Change (total-store basis)	Change (like-for-like store basis)	Number of directly-owned stores
S1 total turnover	174.0	-7.3%	-6.0%	84
Q3 2013 turnover	96.0	-0.5%	+0.2%	(3) -3
9-month total turnover	269.9	-5.0%	-3.8%	81

(3) Directly-owned stores at Verdun, Quimper and Tollevast shut down in the 3 rd quarter of 2013.

On a like-for-like store basis, the Directly-owned stores turnover stabilised in the third quarter, showing a drop of 3.8% over 9 months.

On a total-store basis, the change in turnover at end-September 2013 (-5.0%) resulted from the changes in scope since the beginning of the year (3 stores closed) in connection with the move to rationalize this business.

Lastly, early October, the Group acquired a store under the brand Mr.Bricolage at Coulommiers (potential tax-inclusive turnover estimated at €10 million).

€13.3 million turnover from Online sales

At 30 September 2013, the e-commerce business continued to expand, bringing the Group's commercial and technological investments to fruition.

Sales in the Le Jardin de Catherine, La Maison de Catherine, and the national website mr-bricolage.fr (home delivery) sites stood at €13.3 million at 30 September 2013, of which €4.6 million recorded in the third quarter.

"Network services" business: turnover of €139.2 million at 30 September 2013

Change in Network services turnover

Pre-tax turnover (€ million)	Q3 2013	% change Q3 2013-Q3 2012	30/09/2013	30/09/2012	% change 30/09/2013- 30/09/2012
Sales of goods	26.5	+8.0%	84.5	87.0	-2.9%
Sales of services	18.5	+3.7%	54.7	55.6 (2)	-1.5%
Total turnover Network services	45.0	+6.2%	139.2	142.6 (2)	-2.4%

Network services turnover dipped by 2.4% over 9 months, illustrating the changes that were observed in networks:

• Sales of goods to member stores: €84.5 million (-2.9% over 9 months). The decline in the sale of outdoor products, owing to the weather in the first quarter of the year, was partially offset by the momentum gained in the Cahors warehouse and by the increased contribution of the online sales with store delivery. In the 3rd quarter, the turnover from sales on the national website mr-bricolage.fr with store delivery increased to €1.8 million.

• Sales of services to referenced suppliers and member stores: €54.7 million compared to €55.6 million(2) at 30 September 2012(2) , reflected the changes in turnover and in volumes purchased by networks.

(2) Consolidated turnover from sales of services in the 2012 Network services business adjusted for the change in the estimated inter-sector supplier turnover observed at 31/12/2012 (with no impact on results):

	Q1 2012	Q2 2012	Q3 2012	Q4 2012	Total 2012
Adjusted turnover	17.3	19.1	17.8	15.9	71.5
Variance vs reported	0.0	-0.9	-0.6	1.5	0.0

Debt reduction: -€20.8 million compared to 30 September 2012

After repaying €7 million for the syndicated loan and following the payment of the store acquired in Coulommiers, both in the third quarter, the Group's net debt stood at €130.5 million at 30 September 2013 compared to €151.3 million at 30 September 2012 (based on unaudited figures), representing a debt reduction of €20.8 million.

Resilience of Networks: 883 stores with a tax-inclusive turnover of €1.75 billion at 30 September 2013

Tax-inclusive turnover (€ million)	Q3.2013 / Q3.2012 % change on a like-for-like store basis(6)	30/09/2013	Change (total-store basis)	Change (like-for-like store basis)(6)	Number of stores
In-store sales	+2.5%	1,732.1	-1.7%	-1.4%	883
Of which France (4)	+3.0%	1,571.5	-2.2%	-1.4%	814
Of which International (5)	-1.5%	160.6	+3.5%	-2.0%	69
E-commerce	N/A	18.0	N/A	N/A	N/A
Total tax-inclusive turnover for networks	+2.5%	1,750.0	-0.7%	-1.4%	883

Change in Networks turnover

In France, on a like-for-like store basis, after a third quarter marked by a 3.2% growth, the Mr.Bricolage network outperformed the market limiting the fall in turnover to 1.2% over 9 months. On a like-for-like store basis, the Les Briconautes network turnover declined by 3.4%(7) .

The business in France benefited from the development of the Group's new offerings:

• L'Entrepôt Du Bricolage (turnover of €14.9 million at 30 September 2013) benefits from 3 added stores (Remiremont, Fontaine les Dijon, Saumur);

• e-Commerce kept up its momentum: online sales on the national website mr-bricolage.fr represented 0.7% of the tax-inclusive Q3 2013 turnover of the mainland France Mr.Bricolage network (as opposed to 0.2% in Q1 and 0.5% in Q2).

On the international front, business declined by 2.0% on a like-for-like store basis, impacted by the Eastern Europe countries (-5.4%). On a total-store basis, the network turnover abroad was up 3.5%, buoyed by the strong growth in sales in Belgium (+10.0% on a total-store basis), with the Mr.Bricolage stores opened (3 in 2012 and 1 in 2013) and the acquisition of four Alexandre stores at 1st July 2013.

• (4) Of which 380 Mr.Bricolage stores, 4 L'Entrepôt Du Bricolage stores, 141 Les Briconautes stores and 281 affiliated stores operating outside the brand.
• (5) 10 countries: Andorra (1 store), Belgium (39 under the Mr.Bricolage brand and 4 under the Alexandre brand), Eastern Europe (15), Morocco (4), Mauritius (2), Madagascar (2) and Uruguay (2)
• (6) Changes calculated on the basis of all Mr.Bricolage stores, a panel of 76 Les Briconautes stores and 24 affiliated stores
• (7) Changes calculated using a panel of 76 Les Briconautes stores

Signature of a master franchise agreement in Colombia

Mr Bricolage SA and the Ceramica Italia group (operating in Colombia for over 25 years) signed an agreement for the creation of a network of local DIY stores under the Mr.Bricolage brand in Colombia.

Colombia, with a population of 47 million, shows strong market potential for the DIY business, which is currently shared by three hypermarket groups, mainly from Chili.

This master franchise agreement provides for the transfer of know-how in terms of concept, services and technical assistance from Mr Bricolage, and the gradual increase in development with no capital commitment for Mr Bricolage.

About Mr.Bricolage (as at 30 September 2013)

Mr Bricolage is France's no. 1 local DIY retailer (814 branded or affiliated stores) and has 69 stores in ten other countries. The group operates under the brands Mr.Bricolage, Les Briconautes and L'Entrepôt Du Bricolage and includes about 290 affiliates.

With nearly 12,000 employees, the Group's networks represent a total annual tax-inclusive turnover of over €2.3 billion. At the beginning of July 2012, the Group acquired Le Jardin de Catherine, a company that runs the websites le-jardin-de-catherine.com and la-maison-de-catherine.com. It is currently deploying its cross-channel strategy with the www.mr-bricolage.fr webstore, launched at the end of the year 2012.

Contacts

• Head of Financial Communication: › Eve Jondeau - +33 (0)2 38 43 21 88 - eve.jondeau@mrbricolage.fr
• Financial Communication - Actifin:
• › Nicolas Meunier +33 (0)1 56 88 11 11 nmeunier@actifin.fr
• › Jennifer Jullia +33 (0)1 56 88 11 11 jjullia@actifin.fr

For the full Group financial information, go to

www.mr-bricolage.com