CNOVA N.V. Second Quarter 2017 Activity

Amsterdam – July 11, 2017, 07:45 CEST — Cnova N.V. (Euronext Paris: CNV; ISIN: NL0010949392) (“Cnova” or the “Company”) today announced unaudited 2nd quarter 2017 operating data as well as details of its strategic realignment plan.

GMV: €685 million (+11% like‐for‐like)

  • Mobile share: 37.2% (+   776 bp)
  • Marketplace share: 35.0% (+   314 bp)
  • CDAV share: 32.0% (+1,547 bp)

Net sales: €410 million (+9% like‐for‐like)

Traffic: 208 million visits (+12%)

  • Mobile share of traffic: 59% (+    767 bp)

Active customers: 8.4 million (+10%)

  • CDAV subscribers:   +103%

Orders: 5.7 million (+9%)

  • CDAV share: 29.6% (+1,415 bp)

Launch of volume‐centric strategic realignment

Cdiscount renews market share gains (Gfk)

Emmanuel Grenier, Cnova CEO, commented:

“During the 2nd quarter of 2017, our traffic and GMV grew at a double‐digit rates, our customer loyalty program doubled in size and our marketplace accounted for more than one‐third of our GMV. It is clear to usthat, thanks to our technological expertise, we have one of the best traffic growth dynamics in France, and our mission going forward is to leverage this into higher GMV and net sales growth rates on a sustainable basis. To do this, we have embarked on a new strategic realignment plan designed to one, expand massively our direct sales product range; two, reinforce our multichannel offer; and three, accelerate the introduction of new B2B revenue streams.

Cdiscount is entering into a new growth phase which will see, compared to the end of 2016, its direct sales product range nearly quadruple in size, a 50% increase of its marketplace product catalogue and an 80% expansion of its distribution center floor space by the end of the 1st quarter of 2018. The new revenue streams we are introducing or accelerating will include increased marketplace fulfillment, new B2B services for our marketplace vendors such as foreign exchange and merchant financing, new data‐based revenues, consumer credit and insurance solutions. And on top of all of this, we are improving customer satisfaction before and after purchase. For example, we are launching a new multichannel strategy that includes a new delivery option, and we are making more progress in terms of light product delivery speed. We have completely revamped our mobile site/application and customer area to make it more reactive and to make ordering products easier and faster.

The implementation of these growth initiatives, which temporarily weigh on margins and free cash flow this year, will allow Cdiscount to reinforce its top player status while strengthening its underlying profitability profile on a sustainable basis. These strategic moves are already stimulating top‐line growth. They also allow us to enter into new markets where we are making market share advances.”