Slide 1: 2016 Half Year Results
shen Na 2016 HALF YEAR RESULTS
Slide 2: Results Presentation
Pierre Jean SIVIGNON RESULTS Deputy Chief Executive Officer, Chief Financial Officer PRESENTATION
Slide 3: First-Half 2016 Key Figures
FIRST-HALF 2016 KEY FIGURES Variation Variation at constant at current (in €m) H1 2015 H1 2016 (1) exch. rates exch. rates Net sales 37,739 36,289 +2.2% -3.8% Net sales excluding petrol 34,337 33,243 +3.2% - 3.2% Gross margin 8,694 8,432 +3.4% -3.0% EBITDA (2) 1,488 1,448 +3.4% -2.7% EBITDA margin 3
Slide 4: +2.9% Organic Growth in H1 2016
+2.9% ORGANIC GROWTH IN H1 2016 H1 2016 Sales variation (in €bn and %) +2.9% 0.0% +2.9% 0.0% +2.2% 38.8 38.6 €bn -0.8% €bn 37.7 -3.8% €bn -6.0% 36.3 €bn H1 2015 LFL Net H1 2016 Petrol and Acquisitions/ H1 2016 Currencies H1 2016 net sales openings ex. petrol calendar Disposals net sales impact net s
Slide 5: Further Sales Growth
FURTHER SALES GROWTH Organic sales growth from 2012 to H1 2016 (in %) +2.9% +3.0% +3.9% +2.3% +1.0% Full-year 2012 Full-year 2013 Full-year 2015 Full-year 2015 H1 2016 S1 2016 2012 2013 2014 2015 5
Slide 6: Gross Margin Holds Up Well
GROSS MARGIN HOLDS UP WELL Gross margin Gross margin (in €m) (as a % of net sales) +3.4% +20bp at constant exch. rates 8,694 8,432 Further improvement in gross margin as a result of action plans c 23.2% and growth in sales volumes, particularly 23.0% in Latin America Marge commerciale en M€ H1 2015
Slide 7: Good Control of Operating Costs
GOOD CONTROL OF OPERATING COSTS Operating costs Operating costs (in €m) (as a % of ex. petrol sales) +3.6% +10bp Operating costs under control at constant exch. rates in France and stable in other European countries 6,702 6,500 Further wage and energy inflation 19.5% 19.6% in Latin America and Asia
Slide 8: Stable Asset Costs as a Percentage of Sales
STABLE ASSET COSTS AS A PERCENTAGE OF SALES Asset costs Asset costs (in €m) (as a % of ex. petrol sales) +1.0% Stable at constant exch. rates Continued renovation program 1,266 1,226 and omnichannel investments 3.7% 3.7% H1 2015 H1 2016 8
Slide 9: France: Operating Margin Holds Up Well
FRANCE : OPERATING MARGIN HOLDS UP WELL H1 H1 2-year LFL sales growth 2015 2016 Var. % of +1.5% Net sales (€m) 17,587 17,179 -2.3% Strengthened multiformat Organic sales network, growth in smaller formats -1.5% ex. petrol, ex. calendar Integration of Rue du Commerce LFL sales -0.5% ex. petrol, ex. c
Slide 10: Other European Countries: Further Increase in Profitability
OTHER EUROPEAN COUNTRIES: FURTHER INCREASE IN PROFITABILITY Var. % H1 H1 at const. 2015 2016 Var. % exch. rates Further sales growth Net sales (€m) 9,356 9,428 +0.8% +1.3% in all countries Organic sales 2-year LFL sales growth of +2.4% +1.5% ex. petrol, ex. calendar LFL sales +2.2% ex. petrol, ex. c
Slide 11: Latin America: Excellent Growth
LATIN AMERICA: EXCELLENT GROWTH Var. % H1 H1 at const. Excellent sales growth 2015 2016 Var. % exch. rates in Latin America in a more difficult environment, 2-year LFL sales growth Net sales (€m) 7,257 6,453 -11.1% +17.5% of +19.3% Organic sales +17.9% ex. petrol, ex. calendar Faster pace of growth
Slide 12: Asia: Continued Repositioning of the Operating Model in China, Growth in Taiwan
ASIA: CONTINUED REPOSITIONING OF THE OPERATING MODEL IN CHINA, FURTHER GROWTH IN TAIWAN Var. % H1 H1 at const. 2015 2016 Var. % exch. rates Net sales (€m) 3,538 3,229 -8.7% -4.6% Encouraging sales trends in China, thanks to fresh produce Organic sales -5.3% ex. petrol, ex. calendar Strong growth in
Slide 13: Growth in Adjusted Net Income, Group Share
GROWTH IN ADJUSTED NET INCOME, GROUP SHARE (in €m) H1 2015 H1 2016 Recurring operating income 726 706 Net income from associates and joint ventures 34 -21 H1 2016 : Mainly due to restructuring Non-recurring income and expenses -16 -114 costs in several countries EBIT 745 572 €16m drop in net financi
Slide 14: Well-Balanced Geographical Split of Investments
WELL-BALANCED GEOGRAPHICAL SPLIT OF INVESTMENTS Breakdown of H1 2016 investments by region (excl. Cargo) Continued program to modernize (in %) and differentiate stores 20% Acceleration of Dia store transformation program 6% 44% in France 20% Multiformat expansion, as illustrated by Atacadao 10% Fast
Slide 15: Increase in IT and Omnichannel Investments
INCREASE IN IT AND OMNICHANNEL INVESTMENTS Breakdown of H1 2016 Variation of IT and omnichannel investments by nature (excl. Cargo) investments (in %) (in €m) 15% of capex 15% (excl. Cargo) 22% 31% 32% Expansion Remodelling IT & S1 2014 H1 S1 2015 H1 S1 H1 2016 2016 Maintenance omnichannel 15
Slide 16: Targeting Increased Full-Year Free Cash Flow
TARGETING INCREASED FULL-YEAR FREE CASH FLOW 6 months to 6 months to (in €m) 30 June 2015 30 June 2016 Gross cash flow 1,180 1,088 Change in working capital -2,232 - 2,052 Impact of discontinued operations 21 -11 Operating working cash flow -1,031 -975 Capital expenditures (excl. Cargo) -804 -968 Ca
Slide 17: Year-on-Year Net Debt at End-2016 Expected to Be Stable
YEAR-ON-YEAR NET DEBT AT END-2016 EXPECTED TO BE STABLE 6 months to 6 months to (in €m) 30 June 2015 30 June 2016 Opening net debt (at December 31st) -4,954 -4,546 Free cash flow -2,044 -2,259 Acquisitions -57 -136 Disposals 1 7 Others 1 25 Cash flow after investments and disposals -2,098 -2,363 Div
Slide 18: Strong Take-Up for Dividend Paid in Shares
STRONG TAKE-UP FOR DIVIDEND PAID IN SHARES Take-up ratio for dividend paid in shares (in %) 72.1% 76.3% Higest take-up ratio in the last 5 years 64.6% 59.7% Take-up ratio well above average of CAC 40 companies that offered 20.7% a choice dividend in 2016(1) Cash dividend paid in H1 2016 versus payme
Slide 19: Further Improvement in the Coupon and Profile of Bond Debt
FURTHER IMPROVEMENT IN THE COUPON AND PROFILE OF BOND DEBT Debt redemption schedule (in €m) 1,250 On April 19th, issuance 1,000 1,000 1,000 1,000 of a €750m 8-year bond 750 750 with a 0.75% coupon 667 279 At end June 2016, outstanding average bond maturity stands 4.38% 2.44% 5.25% 1.75% 4.00% 3.88%
Slide 20: Conclusion
<6 CONCLUSION
Slide 21: Continued Growth Momentum in First-Half 2016
CONTINUED GROWTH MOMENTUM IN FIRST-HALF 2016 Strong sales growth +2.9% organic sales growth Growth on an already strong base for the last 3 years Further profit growth +5.3% growth in Recurring Operating Income at constant currencies +0.6% growth in adjusted Net income, Group share 2016 objectives I
Slide 22: Doing Our Job Well
DOING Deputy Chief Executive Officer, <®» OUR JOB WELL General Secretary Garrefour ie Fz
Slide 23: Appendix
<6 APPENDIX
Slide 24: H1 2016 Income Statement
H1 2016 INCOME STATEMENT Variation at (in €m) H1 2015 H1 2016 current exch. rates Net sales 37,739 36,289 -3.8% Net sales, net of loyalty 37,470 36,017 -3.9% Other revenues 1,247 1,275 +2.2% Total revenues 38,718 37,292 -3.7% Cost of goods sold -30,024 -28,860 Gross margin 8,694 8,432 -3.0% SG&A -7,
Slide 25: Regional Net Sales and Recurring Operating Income
REGIONAL NET SALES AND RECURRING OPERATING INCOME Net sales Recurring Operating Income Variation Variation Variation Organic at current at constant at current (in €m) H1 2015 H1 2016 growth exch. rates H1 2015 H1 2016 exch. rates exch. rates France 17,587 17,179 -1.5% -2.3% 321 312 -3.0% -3.0% Other
Slide 26: Adjusted Net Income, Group Share
ADJUSTED NET INCOME, GROUP SHARE €m H1 2015 H1 2016 Variation Net Income from continuing operations, Group share 230 158 -31.5% Restatement for non recurring income and expenses (before tax) 16 114 Restatement for exceptional items in net financial expenses 31 7 Tax impact (1) -28 -48 Restatement on
Slide 27: Earnings per Share
EARNINGS PER SHARE € per share H1 2015 H1 2016 Net income from continuing operations 0.32 0.22 Net income from discontinued operations -0.02 -0.04 Net Income, Group share 0.30 0.18 Adjusted Net Income, Group share 0.32 0.32 Weighted average number of shares pre-dilution (in millions) (1) 722.2 730.9
Slide 28: Stores Under Banners at End H1 2016
STORES UNDER BANNERS (INCL. FRANCHISEES AND PARTNERS) AT END H1 2016 Hypermarkets Supermarkets Convenience Cash & Carry TOTAL France 242 1,036 4,247 143 5,668 Spain 173 127 466 766 Belgium 45 441 270 756 Italy 58 455 575 13 1,101 Poland 84 151 602 837 Romania 29 113 55 197 Other 46 458 228 732 Other
Slide 29: H1 2016 Gross Sales
H1 2016 GROSS SALES Change Change Change Organic Total sales at current at constant at constant LFL growth inc. VAT exch.rates exch. rates exch. rates LFL ex. petrol ex. petrol (€m) inc. petrol inc. petrol ex. petrol inc. petrol ex. calendar ex. calendar France 19,196 -2.4% -2.4% -0.9% -1.4% -0.5% -
Slide 30: Q2 2016 Gross Sales
Q2 2016 GROSS SALES Change Change Change Organic Total sales at current at constant at constant LFL growth inc. VAT exch.rates exch. rates exch. rates LFL ex. petrol ex. petrol (€m) inc. petrol inc. petrol ex. petrol inc. petrol ex. calendar ex. calendar France 9,861 -3.0% -3.0% -1.8% -1.7% -0.9% -2
Slide 31: Disclaimer
DISCLAIMER This presentation contains both historical and forward-looking statements. These forward-looking statements are based on Carrefour management's current views and assumptions. Such statements are not guarantees of future performance of the Group. Actual results or performances may differ m