PRESS RELEASE

MAISONS DU MONDE :

INFORMATION ABOUT THE COMPENSATION PACKAGE SET

FOR JULIE WALBAUM, CEO

INFORMATION REGARDING GILLES PETIT'S COMPENSATION

Nantes, 29 June 2018

According to the AFEP- MEDEF Corporate Governance code and the Financial Markets Authority's recommendations, Maisons du Monde (Euronext Paris: MDM, Code ISIN: FR0013153541) publishes the decisions taken by its board of directors on June 29, 2018 regarding the compensation components of the new Chief Executive Officer, Mrs. Julie Walbaum, and specifies the financial terms of the departure of the former Managing

Director's, Mr. Gilles Petit.

Mrs. Julie Walbaum's compensation as of July 1, 2018

On May 3 2018, the Board of Directors of Maisons du Monde decided to appoint Mrs. Julie Walbaum as Managing Director with effect from July 1, 2018. In this context, Mrs. Julie Walbaum resigned, today, from her employment contract which bounded her with Maisons du Monde with effect from June 30, 2018.

During the meeting held on June 29 2018, on the basis of the Appointments and Compensations Committee's recommendation, the board of directors fixed Mrs. Julie Walbaum's compensation at EUR 400,000 as of July 1, 2018.

Mrs. Julie Walbaum's gross annual fixed compensation is fixed at EUR 400,000.

Mrs. Julie Walbaum will also be able to benefit from a gross annual variable bonus whose target value is 60 % of her gross annual fixed compensation. The amount of the variable bonus can be set between 0 % and 150 % of the target value depending on the performance. The annual variable bonus ceiling is 90 % of Mrs. Julie Walbaum's annual fixed compensation. The benefit of this variable bonus is conditional on the achievement of both the quantitative and qualitative objectives defined annually by the Board of Directors. For the second half of 2018, the quantitative and qualitative objectives are set as follows: 70% of the annual variable bonus is determined on a quantitative objective based on both the Group's turnover and EBIT in accordance with the budget and 30% is determined on a qualitative objective, based on pre-established qualitative objectives defined in a precise way. The level of achievement of the quantifiable criteria has moreover been established precisely. The qualitative objectives used and the level of achievement of the quantifiable criteria are not disclosed for confidentiality reasons. The quantitative and qualitative objectives to which the benefit of the variable bonus is conditioned will be reviewed each year by the Board of Directors of Maisons du Monde.

Mrs. Julie Walbaum will also be eligible to the allocation of free performance shares, under the conditions set by the Board of Directors of Maisons du Monde during its meeting on May 19, 2017, within the limit of an annual amount valued at 150% of her total compensation (fixed plus maximum variable). According to the provisions of the

"Code de commerce" (i.e French Commercial Code), in the event of the allocation of free performance shares, Mrs.

Walbaum will be required to hold, in registered form, until the end of her term, 40% of the shares allocated until Mrs.Walbaum holds a quantity of shares representing 2 years of base salary.

Mrs. Walbaum will finally benefit from a company car corresponding to a benefit of a maximum amount of EUR 6,000.

The terms of Mrs. Julie Walbaum's compensation are however and either way subject to the approval of the General meeting of shareholders.

In addition, the Board of Directors has authorized the stipulation of a non-competition clause for a period of 12 months from the term of Mrs. Julie Walbaum's corporate office, in return for which the latter will benefit, after the termination of her corporate office and for the duration of the non-competition commitment, a special gross monthly lump sum allowance equal to 50% of the average gross monthly compensation received by Mrs. Julie Walbaum during the last twelve full months of her activity. The Board of Directors may waive the implementation of the clause upon the departure of Mrs. Julie Walbaum. The payment of the special monthly lump sum allowance will be excluded once Mrs. Julie Walbaum claim for her pension rights to retirement. In any case, no compensation can be paid beyond 65 years.

Financial terms of Mr. Gilles Petit departure

Mr. Gilles Petit has decided to leave his position as Managing Director of Maisons du Monde, as of June 30, 2018.

The financial terms of his departure are presented below:

  • - as of July 1, 2018, Gilles Petit will no longer hold any executive position within Maisons du Monde and will therefore no longer receive any fixed compensation. For the current financial year, Mr. Gilles Petit has received a fixed remuneration of EUR 200,000 gross;

  • - the annual variable compensation due for the 2018 accounting period will be prorated to cover the period from January 1 to June 30, 2018. The amount of this remuneration will be fixed by the Board of Directors, upon the recommendation of the Appointments and Compensation Committee after examination of the objectives set by the Board at the beginning of the 2018 fiscal period. The achievement of the quantitative and qualitative criteria will be assessed on June 30, 2018. Thus, the achievement of the quantitative objective based on the Group's EBIT will be assessed regarding of the Group's EBIT on June 30, 2018;

  • - the Board of Directors has also decided, according to the Regulation of the free performance share attribution plan of Maisons du Monde of May 19, 2017, and on the recommendation of the Appointments and Compensation Committee, that Mr. Gilles Petit could retain the benefit of a portion of the free performance shares granted to him in 2017, representing 23,000 free performance shares whose valuation on June 28, 2018 would correspond to EUR 753,940. The final vesting of the shares will take place at the end of the vesting period and is subject to the compliance with the Performance Conditions. The Board of Directors has decided that maintaining the benefit of a portion of the bonus performance shares will allow Mr. Gilles Petit to participate in the long-term incentive plan implemented in December 2016 for the benefit of nearly 300 employees of the Group and is, in the particular case, fully justified regarding of the importance of the services provided by Mr. Gilles Petit;

  • - it is recalled that no free performance shares were awarded to Gilles Petit in 2018;

  • - it is specified that in the context of his departure Mr. Gilles Petit will not benefit from any severance or non-compete indemnity;

  • - lastly, it is specified that the company Gilles Petit Conseil, of which Mr. Gilles Petit is the sole partner and the President, will provide assistance and advice in management, operational management and coaching to the General Management of Maisons du Monde as of July 1, 2018 and for 18 months. In return for these services, Maisons du Monde will pay the company Gilles Petit Conseil the lump sum of EUR 100,000

    V.A.T excluded every month for the period from July to December 2018 and the lump sum of EUR 100,000 V.A.T excluded payable every month for the period from January to December 2019. In the second half of 2018, Maisons du Monde will also make a vehicle available to Gilles Petit Conseil, corresponding to a benefit of EUR 2,888.

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About Maisons du Monde

Maisons du Monde is a creator of inspirational lifestyle universes in the homeware industry, offering distinctive and affordable decoration and furniture collections that showcase multiple styles. The Group develops its business through an integrated and complementary omnichannel approach, leveraging its international network of stores, websites and catalogues. The Group was founded in France in 1996 and has profitably expanded across Europe since 2003. The Group posted sales of €1,011 million and EBITDA of139 million for the year ended 31 December 2017. In 2017, the Group operated 313 stores in seven countries including France, Italy, Spain, Belgium, Germany, Switzerland, and Luxembourg, and derived over 38% of its sales from outside France. The Group has also built a successful complementary and comprehensive online shopping website, sales from which grew 35% per year on average between 2010 and 2017. The website is available in eleven countries: the seven countries where the Group operates stores plus Austria, the Netherlands, Portugal and the United Kingdom. In 2017, online sales represented 21% of the Group's sales.

www.corporate.maisonsdumonde.com

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Maisons du Monde SA published this content on 29 June 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 29 June 2018 16:38:03 UTC