STRATEGIC REVIEW Ricardo Currás CEO DIA Group

Consumers continue to prefer 2P food retailers: Price & Proximity Rising oil and energy costs

Less persons per household & reduced space for storage

Reduction of income

More women in the workforce

Consumers are looking for Proximity and Price

Increase of urban population

Rise of middle class

Emerging

Western Europe

Ageing population

Higher personnel costs

“Socio-demographic trends should continue to play against the hypermarket format” “ We expect grocery formats offering convenience and / or discount features to continue to grow rapidly in Europe” Retail analysts

Preference for 2P is here to stay Page 1

Food retail formats are converging towards 2P Price

Low

Hard Discounters

2P

Hypermarkets Supermarkets

High Department stores

Attraction

Convenience

Proximity

Distance

Retailers (hard discounter, supermarkets, convenience stores) are converging towards 2P Page 2

DIA today

6 countries 45,368 employees

2,991 franchises with 20,188 employees

Iberia

27% 54% 19% €11.5bn sales

7,328 stores

France Emerging Markets

We have the most densified store network in our core countries/regions with the most flexible operational model Data as of 31.12.2013 Page 3

2010 – 2014: DIA has strengthened its presence in its core markets

2010 France Greece Portugal Spain

Turkey

China

Brazil

Argentina

Exit from Greece. 7 countries: Spain, Portugal, France, Turkey, Brazil, Argentina, China Page 4

2010 – 2014: DIA has strengthened its presence in its core markets

2012 France Portugal Spain

Turkey

China

Brazil

Argentina

Spin off from Carrefour, entry in Madrid stock market (July 2011) Entry in Rio Grande do Sul in Brasil in 2011 (10 millions inhabitants). Entry in Salta & Jujuy in Argentina in 2012. All French stores converted to DIA Page 5

2010 – 2014: DIA has strengthened its presence in its core markets

(Number of stores)

2014 IGD ranking of emerging food retail markets #

Countries

1

China

2

Brazil

10

Argentina

France (865) Portugal (641)

Spain (4,151)*

China (361)

Brazil (667)

Argentina (643) * Including Schlecker

Exit from Turkey & Beijing in 2013 Acquisition of Schlecker and launch of Clarel in Iberia (2013) Entry in Minas Gerais, Brazil, in 2013 (20 millions inhabitants) Entry in Bahia, Brazil, in 2014 (14 millions inhabitants) Page 6

Moving forward, we will continue to grow in our core markets •

•

DIA is in 3 of the TOP 10 most promising emerging grocery markets (IGD ranking) DIA seems to have already a high international exposure given its size (“Global Powers of Retailing”, Deloitte, 2013)

Accelerating expansion in Brazil, Argentina and China, where we see great growth opportunities Rolling out our new formats in food and HPC (Clarel) in Iberia and internationally

Continuing to improve and enrich our format portfolio through remodeling and format innovation Analyzing tactical M&A opportunities, specially in Spain, where the food retail sector is still relatively fragmented Assessing opportunities to enter in new geographies, yet through partnerships with local players or master franchise agreements

With its geographical footprint and format portfolio, DIA is well positioned to growth Page 7

Emerging Markets share of Group’s sales keeps growing, bringing diversification and resilience Brazil Net sales Brazilian Real

26% CAGR

4,111 3,398 2,053 640

# stores

848

1,144

2,395

2,780

1,580

2005

2006

2008

2009

2010

2011

2012

2013

236

258 300 327

376

408

480

561

667

2007

2014E

2015E

2016E

In Brazil, we have been growing at 26% p.a. and we see a great potential to generate profitable growth in the coming years Page 8

DIA’s answers: a simple and efficient 2P business model Proximity specialist Low cost operator

Lowest prices

Franchise

Quality private label Loyalty program

DIA’s business model relies on an attractive 2P value proposition enhanced by a successful franchise formula: the 2PF Page 9

DIA’s answers: 1 - Proximity specialist

Proximity specialist

Low cost operator

Lowest prices

Franchise

Quality private label Loyalty program

Page 10

Proximity is at the heart of DIA concept DIA Maxi

DIA Market

• 62% stores • Almost 59% total revenues

Key features

• Surface: 400 - 700 sq.m • Located in dense areas • No parking lot

Targets

• Best prices in catchment area • Capture new customers • Increase customer visit frequency

Assortme nt

• 2,800 SKUs, • Focus on expanding the offer of perishables

• Adaptability to local catchment area

• 22% stores • Around 38% total revenues • Surface: 700 -1,000 sq.m • Located on the outskirts of cities

• With a parking lot • Offer best prices in the market • Maximize customer baskets • Offer complete food assortment

• 3,500 SKUs, • Focus on expansion of mass market products

• Adaptability to the domestic markets

Schlecker/Clarel

• 16% stores • Around 3% total revenues • Surface: ~200 sq.m • Located in dense areas • No parking lot • Best prices in catchment area • Cross selling with DIA • Offer mainly household, cleaning, beauty products

• 6,200 SKUs, • Focus on expansion of mass market products

• Adaptability to the domestic markets

Our ambition: Be the food, household and personal care discounter closest to the customer Page 11

DIA is continuously improving its formats to generate sales growth Continuous store remodelling to become… 2007/08

2010/11

2014/15

DIA Market

I

II

III

DIA Maxi

I

II

III

…More specialist in HPC • Enlarged multi brand private label offer …More specialist in Fresh products • Fruits & Vegetables • Bakery • Improved offer, pricing and merchandizing are being tested in …More specialist in new categories • Health • Organic Marketing initiatives to strengthen our brand image and awareness “Expert@s en ahorro”, “Demos la vuelta al dia”

DIA aims to become specialist: in food, in fresh, in HPC Page 12

We are testing and investing in a multi channel approach with promising results

On line shopping

Market Place

APP

4,151 Customer behaviour

Picking points (Spain)

With its 4,151 picking points in Spain, DIA is well positioned to develop an attractive and competitive online offer Page 13

DIA’s answers: 2 - Lowest prices

Proximity specialist

Low cost operator

Lowest prices

Franchise

Quality private label Loyalty program

Page 14

DIA has the best price image in 4 markets Price image Spain 80 70 60 50 40 30 20 10 0 apr-05 sep-05 may-06 apr-07 sep-07 apr-08 sep-08 apr-09 sep-09 apr-10 DIA

Nº 1 in price

Competitor 1

sep-10

jun-11

abr-12

nov-12 may-13 nov-13

Competitor 2

The most recommended food retailer

We continuously invest in prices to improve our competitivity Source: KANTAR Page 15

DIA’s answers: 3 - Quality private label

Proximity specialist

Low cost operator

Lowest prices

Franchise

Quality private label Loyalty program

Page 16

DIA is creating a multi brand Private Label offer

From…

…To

Beauty & Personal Care

Pet Care Baby care

DIA is enriching its private label offer specially in Health & Personal Care products Page 17

More than 50% of our sales are made through private label: a unique competitive advantage Private label penetration (weight in FMCG sales) DIA 9% 1%

Market

9x 37%

5% 38% 7%

7x 5x 57%

32% 62% 36%

From 1.4x to 2x

56% 39%

DIA well above competitors specially in emerging markets Source: Market research Page 18

DIA’s answers: 4 - Loyalty program

Proximity specialist

Low cost operator

Lowest prices

Franchise

Quality private label Loyalty program

Page 19

Learning from the consumer / customer behaviour is key for DIA 5 countries

16,640,699 active card holders

Club DIA customers purchases data mining

12.1 million personalised discount coupons redeemed by Club DIA customers every month

Loyalty Card: contribution to price advantage and in-depth customer knowledge enabling customer/area-targeted marketing Data as of 31-12-2013 Page 20

DIA’s answers: 5 - Franchise

Proximity specialist

Low cost operator

Lowest prices

Franchise

Quality private label Loyalty program

Page 21

Franchise is the best operating model for Proximity stores

Visit our web: http://franquicia.dia.es/ Page 22

Franchise is the best operating model for Proximity stores

Visit our web: http://franquicia.dia.es/ Page 23

DIA provides to its franchisee a distinctive know-how and a solid track record

A profitable business model Economies of scale in purchasing Financial and administrative support

Franchisee

Winning commercial proposition

•

Focused on results

•

High-performance team

•

Customers unique shopping experience

•

Enthusiastic DIA brand ambassador

•

Lower-cost operator

Innovation in store model

Strong brand strategy Efficient operating standards

IT support Training and on the ground coaching

Franchise: an easy concept to understand…but not so easy to implement and to manage: DIA offers to the franchisee a flexible, win-win formula Page 24

DIA counts today with close to 3,000 franchises Franchise stores, # X1.8 1.723

X7.2 958

1.038

X3.2 144

2008

Iberia

2013

2008

72

2013

Emerging

2008

230

2013

France

DIA has multiplied by 2.5 its franchise stores over the last 5 years Page 25

We see still a big potential to grow our franchise business Stores by operating model

77%

23% 2008

52%

Directly operated Franchise

48%

2013*

2016

Franchise is a key growth lever for DIA *excluding Schlecker Page 26

DIA’s answers: 6 - Low cost operator

Proximity specialist

Low cost operator

Lowest prices

Franchise

Quality private label Loyalty program

Page 27

We have achieved important cost reductions that allow us to be more competitive ROI*

Total Distribution costs / sales (%) 17.3%

16.5

17.7%

17.9%

16.5%

16.1 15.7 15.3

15.0

12.0% 2009

2010

2011

2012

2013*

2010

2011

2012

2013

*excluding Schlecker

Sector average

•

Energy savings (e.g., leds in all stores)

•

DIA ROI is well above sector average

•

In store productivity gains

•

Emerging ROI is fully in line with Iberia level

•

Renegotiation of rents

We believe there is still room for improvement and we will pursue our efforts (*) ROI

= Adj. Operating income (EBITDAR) / Avg. invested capital Avg. invested capital = Avg total assets exc cash + Avg D&A – Avg accounted payables –Avg accrued liabilities + x8 Rent adjustment Sector Average: Ahold, Carrefour, Casino, Delhaize and Metro

Page 28

In summary, we will continue to benefit from a strong momentum • Consumers are looking for Price and Proximity and DIA is the closest and the cheapest • Our franchise know how and network is a key distinctive success factor that we will continue to strengthen and develop • Growth in Iberia, Argentina and Brazil is our priority

• We will continue to enrich and improve our portfolio of proximity formats, becoming more specialist and generating sales growth • The future (present) will be multi channel in food retail too and DIA is getting ready

Page 29

Q &A