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1 Communication Interne & institutionnelle Communication Interne & institutionnelle LEROY MERLIN France He lp i ng e a c h i nh a b i ta n t t o d r e a m o f h i s f utur e h o m e a n d to fulfi l l hi s d r e a ms”

“Heping each nt to dre am inhabita of his fut ure hom e and to ... Interne & institutionnelle -Communication Interne & institutionnelleFévrier 2011 2 Our ambition : accompanying

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1Communication Interne & institutionnelleCommunication Interne & institutionnelle

LEROY MERLIN France

“Helping

each

inhabitan

t to drea

m

of his fut

ure home

and to fu

lfill his

dreams”

2Communication Interne & institutionnelle - Février 2011Communication Interne & institutionnelle

Our ambition : accompanyinginhabitant’s dreams worldwide

• GROUPE ADEO is a pioneer company, Today Leroy Merlin France is the leader, on the French DIY market, in home and lifestyle improvements.

• Specialized in the sale of products and projects, its ambition is to “help each inhabitant to dream of his future home and to fulfill his dreams”, and by placing customer satisfaction as his first overall concern.

3Communication Interne & institutionnelle - Février 2011 Date

1923 - Adolphe Leroy and Rose Merlin start selling American military stock, retrieved at the end of the First World War.

1960 - The “Stock Americain” opens more warehouses in the North of France and becomes “Leroy Merlin”.

A Story which started in1923 and is still in itsconstruction

4Communication Interne & institutionnelle - Février 2011 Date

1968 - Opening of a self-service DIY store in Noeux-Les-Mines (North of France).

1980 - With its 33 stores, the company is purchased by the MulliezFamily.

1986 - Launching of the employees shareholder scheme.

A Story which started in1923 and is still in itsconstruction

5Communication Interne & institutionnelle - Février 2011 Date

1995 - Launching of the Corporate project, “Vision” process : Leroy Merlin France is the first company, to lead all of its employees in one unique process in the world.

2005 - Leroy Merlin France opens its first franchised store and has5 today.

A Story which started in1923 and is still in itsconstruction

6Communication Interne & institutionnelle - Février 2011 Date

2007 - The multi-modal site in Dourges(North of France) opens the new logistical centre Leroy Merlin France, covering 54 000 square meters.

2009 - Opening in Valence (South of France) of the first positive energy store.

2010 - Opening of the second multi-modal logistic centre in Valence.

A Story which started in1923 and is still in itsconstruction

7Communication Interne & institutionnelle - Février 2011 Date

A company, which has constantly grown for twenty years(FIGURES IN 2010)

19 308employees

4,9thousand million

euros6%

Progress of

111integrated

stores and 5 franchised

stores

Surface area store : from6 500 up to

14 000 square meters

60 000references in

stores + 20 000 available“on-order”

2in Dourges (North

of France) and Valence (South of

France)

logistical multi-modal platforms 3 156

suppliers

Turnover :

An average of

8Communication Interne & institutionnelle - Février 2011 Date

Our presence in France

Regionalmanagement

offices

franchisedstores

9

5

111integrated

stores

9Communication Interne & institutionnelle - Février 2011 Date

The values that describe our “company’s spirit” are enacted everyday by a real devotion to our customers, through the pleasure we take in our jobs and by a real taste for human relationships.

From the values of Commitment, Simplicity, Generosity and Respect, another strong value is added :Autonomy in the workplace.

The right decisions are taken as close as possible to the field by those who have the best knowledge.

A company philosophy whichis strongly shared

10Communication Interne & institutionnelle - Février 2011 Date

The teams of Leroy Merlin France have built a Corporate Plan which reflect its values.

It is led each day through management by participation, where Managers are encouraged to “naturally” trust and to generate ideas from their teams rather than imposing their own ideas.

It is this culture that is the best guarantor of our sharing policy.

Our Sharing philosophy is in the depth of ourHuman policies

A company philosophy strongly shared

11Communication Interne & institutionnelle - Février 2011 Date

Leroy Merlin France has devoted for over 15 years, more than 5% of its payroll to training employees, three times m ore than the registered average in France.

Acquiring qualifications is at the heart of our corporate strategy. The company enables each employee to elaborate his professional training project.

An internal training institute, Leroy Merlin Development Institute (IDLM), created at the beginning of the 1990's, recognized now by the State, develops more than 450 tools and pedagogical contentsresponding to the needs of the company and those of the employees : e-learning units, innovative training workshops…

In 2010 :• More than 300 000 training hours have been done• More than 55 000 courses have been followed• More than 17 000 students have participated

Our Human Policies :Acquiring qualifications

12Communication Interne & institutionnelle - Février 2011

13Communication Interne & institutionnelle - Février 2011 Date

Leroy Merlin, an attractive employer

Leroy Merlin France was the first French company in 2010 awarded “it is great place to work”, in the Best workplaces Institute academy. We have been on the prize list for the last six years, where we have moved from the 12th to the2nd place, and we are the first retailing company.

Among the more significant results :

• 90% are proud to say that they work for Leroy Merlin.

• 95% praise the welcome of new arrivals, at all jobs levels.

• 88% consider that the benefit sharing scheme is fair.

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The personality of the applicant, his frame of mind and his commitment make more difference than the qualifications he has, particularly in jobs such as Sales-Adviser, Customers Service Host(ess) and Logistics.

With regard to other key positions, the company is as much interested in graduate applicants, from third level education with or without experience, as in candidates without qualifications, but with successful experience in a similar profession.

2 096 collaborators have been recruited(Long Term Contracts) in 2010.

Every year 70% of available jobs are filled in-house.

Leroy Merlin, an attractive employer

15Communication Interne & institutionnelle - Février 2011 Date

Leroy Merlin, an attractive employer

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Our profession : Helping each inhabitant to dream of his home and to fulfill his dreams

Leroy Merlin places its inhabitants' satisfaction at the

heart of its preoccupations.

• Listening to understand their expectations.

• Providing inspiration to them, proposing ideas to them

that respond to their needs,

• Offering the best choice in products and services.

• Accompanying them so as to fulfill their projects.

• Contributing to developing concepts and responding to

home problematics.

17Communication Interne & institutionnelle - Février 2011 Date

Leroy Merlin France has built its corporate strategies around a

number of ideas :

• Choice: an offer of 60 000 available references in stores and

20 000 available on-order.• Price: a policy that enables each inhabitant whatever his

budget, to find an answer to his need.

• Pedagogy : it depends not only upon the skills of the teams in

stores, but also upon a multiplicity of aids, tools and services(buying guides, DIY courses, installation services, telephone

assistance...).

• Confidence and proximity : a close built relationship with inhabitants, regulated by meetings and exchanges (customer

events in stores, creation of DIY Clubs...).

Our profession : Helping each inhabitant to dream of his home and to fulfill his dreams

18Communication Interne & institutionnelle - Février 2011 Date

Leroy Merlin works towards sustainable Housing

Leroy Merlin France signs a responsible improvement procedure, symbolized by a commitment :

“Dream up tomorrow ’s home”

In practical terms, this commitment aims at :

• Designing a house that respects its inhabitants.

• Preparing the future of a house.

• Preserving the comfort of its inhabitants in all of life’s situations.

• Dreaming up and providing affordable solutions.

• Encouraging the use of less polluting products.

19Communication Interne & institutionnelle - Février 2011 Date

Our commitment “Dream up tomorrow’s home” can be put into four themes. Each of them accompanies the product and the services depending on their specific functions.

Leroy Merlin works towards sustainable Housing

For a healthier house For a more comfortable house

For a more economic house For a more eco-friendly house

20Communication Interne & institutionnelle - Février 2011 Date

Leroy Merlin develops a logistic process that enables to optimize product availability for customers, while limiting the ecological impact generated by their transportation

- Building of two multi-modal platforms in Dourges (North of France) and Valence (South of France), which reduce the average distances between the warehouses, suppliers and stores.

- Diversification of the mode of transport: 8 million kilometres have been saved on the road over three years, thanks to river traffic and to the combination between rail/road transport.- Optimization of the trucks load.

Leroy Merlin optimizes its logisticcircuits and restricts itsenvironmental footprint

21Communication Interne & institutionnelle - Février 2011

End of 2009, the new store opened in Valence (South of France) testifies to the advances made by Leroy Merlin. It represents building standards in the field of sustainable development of the future stores of the company.

Valence : a positive energy store

22Communication Interne & institutionnelle - Février 2011 Date

The Leroy Merlin Foundation generated by employees willing to involve themselves in favour of disabled persons or dependent people .

Employees commit their help to families and help them in their plans to improve their home.

110 projects have been led since 2006, and 55 have been accomplished in 2010.

Since 1998 Leroy Merlin has also been a partner in the competition of “Papas Bricoleurs et Mamans Astucieuses”, (DIY Dads and clever Mums) the aim is to help families whose children are disabled. Its target is to stimulate “clever” innovation to fit their housing.

The Leroy Merlin Foundation“For housing adapted to everyone”

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For more information

www.leroymerlin.fr

www.recrute.leroymerlin.fr

www.fondationleroymerlin.fr

www.leroymerlinsource.fr

www.ducotedechezvous.com

www.groupe-adeo.com

24Communication Interne & institutionnelle - Février 2011 Date

• 62 000 employees(5 000 of which have been recruited in 2010),25 business units, 12 countries.

• Opening of Ukraine and Turkey(Romania will open in 2011)

• + 21 stores

• Turnover 2010: 12.5 thousand million euro

• Progress 14%

• Classified in the 4th world row

• Classified in the 2nd European row

GROUPE ADEOThe figures in 2010

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The large DIY storesLEROY MERLINFrom 6 000 up to 19 000 metres square.302 stores, including 4 franchised stores.

The Proximity StoresAKI, BRICOCENTER and WELDOMFrom 2 000 up to 6 000 metres square.441 stores, including 296 franchised stores.

The Discount / Warehouse StoresBRICOMAN and BRICOMARTFrom 5 000 up to 10 000 metres square.40 stores

The other conceptsDOMPRO, ZODIO and KBANE112 stores for DOMPRO

3 stores for ZODIO1 store for KBANE

4 Activities

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FRANCE, number of stores:111 Leroy Merlin4 franchised Leroy Merlin 20 Weldom256 franchised Weldom1 Dompro108 affiliated members Dompro29 Bricoman3 Zôdio1 Kbane

BRESIL , number of stores:21 Leroy Merlin

CHINE, number of stores:2 Leroy Merlin

ESPAGNE, number of stores:49 Leroy Merlin5 Bricomart33 AKI

GRECE, number of stores:4 Leroy Merlin

GROUPE ADEO in the world

27Communication Interne & institutionnelle - Février 2011

ITALIE , number of stores:45 Leroy Merlin65 Bricocenter40 franchised Bricocenter 4 Bricoman

POLOGNE, number of stores:39 Leroy Merlin2 Bricoman

PORTUGAL , number of stores:8 Leroy Merlin27 AKI

ROUMANIE, number of employees:37 employees

RUSSIE, number of stores:16 Leroy Merlin

TURQUIE, number of stores:1 Leroy Merlin

UKRAINE , number of employees:202 employees

GROUPE ADEO in the world