Slide 1: Half Year Results August 29, 2013
HALF YEAR RESULTS AUGUST 29*, 2013
Slide 2: Introduction
<6 HALF YEAR RESULTS August 29", 2013 INTRODUCTION Georges PLASSAT
Slide 3: Financial Results
<6 HALF YEAR RESULTS August 29", 2013 FINANCIAL RESULTS Pierre-Jean SIVIGNON
Slide 4: H1 2013 Preliminary Remarks: Business
H1 2013 Preliminary Remarks Business The Group continued to reorganize and strengthen its partnerships in Turkey, the Middle East and Africa • Reorganization of its partnership with Sabanci in Turkey: Carrefour now hold 46.2% of CarrefourSA • Reorganization of its partnership with Majid Al Futtaim:
Slide 5: H1 2013 Preliminary Remarks: Accounting standards
H1 2013 Preliminary Remarks Accounting standards As a reminder, in accordance with IFRS 5 and following the refocusing of the Group over the last months, income and expenses from discontinued activities (Greece, Singapore, Colombia, Malaysia, Indonesia and Turkey) have been reclassified on the “Net
Slide 6: H1 2013 Key Figures
H1 2013 Key Figures Var. at constant Var. at current (€m) H1 2012 (1) H1 2013 (2) exch. rates exch. rates Net sales 36,777 36,464 +1.4% -0.8% Commercial income 7,908 7,986 +3.4% +1.0% EBITDA (3) 1,479 1,482 +2.4% +0.2% EBITDA margin 4.0% 4.1% +10bp +10bp ROI (Recurring operating income) 730 766 +7.7
Slide 7: Organic growth in H1 2013, negative impact from currencies
Organic growth in H1 2013, negative impact from currencies Change in net sales inc. petrol H1 2012/H1 2013 (€m and %) +1.3% +0.1% 36,777 -2.2% -0.8% 36,464 Net sales H1 2012 Organic Acquisitions / Currencies Net sales H1 2013 Disposals 7
Slide 8: Growth in emerging markets, stable sales in France
Growth in emerging markets, stable sales in France H1 2013 change in net sales including petrol by region (%) +13.3% Current exch. rates Constant exch. rates +2.7% +2.7% +1.1% +1.4% -0.3% -0.3% -0.8% -4.5% -4.6% France Europe Latin America Asia Group 8
Slide 9: Growth in commercial income
Growth in commercial income Var. at constant Var. at current (€m) H1 2012 H1 2013 exch. rates exch. rates Net sales 36,777 36,464 +1.4% -0.8% Commercial income 7,908 7,986 +3.4% +1.0% Commercial margin % 21.5% 21.9% +40bp +40bp Growth of both commercial income and commercial margin Commercial margin
Slide 10: SG&A under control
SG&A under control Var. at constant Var. at current (€m) H1 2012 H1 2013 exch. rates exch. rates SG&A including asset costs 7,179 7,221 +3.0% +0.6% As a % of sales 19.5% 19.8% +30bp +30bp SG&A excluding asset costs 5,984 6,045 +3.6% +1.0% As a % of sales 16.3% 16.6% +40bp +30bp Asset costs 1,195 1,1
Slide 11: France: Significant increase in ROI
France: Significant increase in ROI (€m) H1 2012 H1 2013 Var. Net sales 16,995 16,947 -0.3% ROI 275 482 +75.4% As a % of sales 1.6% 2.8% +120bp ROI of €482m, up €207m, a 120bp margin increase • Commercial margin up as a result of action plans • Stability of SG&A costs • Good profitability in all for
Slide 12: Other European countries: Difficult economic environment in the South
Other European countries: Difficult economic environment in the South (€m) H1 2012 H1 2013 Var. Net sales 9,605 9,176 -4.5% ROI 153 36 -76.4% As a % of sales 1.6% 0.4% -120bp Regional sales and profits impacted by persistently tough economic conditions in Southern Europe • Commercial margin resilien
Slide 13: Latin America: Growth of sales and ROI at constant currencies
Latin America: Growth of sales and ROI at constant currencies Var. at constant Var. at current (€m) H1 2012 H1 2013 exch. rates exch. rates Net sales 6,879 6,953 +13.3% +1.1% ROI 231 217 +3.1% -6.0% As a % of sales 3.4% 3.1% -30bp -30bp ROI of €217m, up 3.1% at constant exchange rates (negative curr
Slide 14: Asia: Continued growth against a backdrop of wage inflation
Asia : Continued growth against a backdrop of wage inflation Var. at constant Var. at current (€m) H1 2012 H1 2013 exch. rates exch. rates Net sales 3,298 3,388 +2.7% +2.7% ROI 105 91 -13.4% -12.9% As a % of sales 3.2% 2.7% -50bp -50bp Decrease in profits in the region • China and Taiwan regained mo
Slide 15: Solid H1 2013 EBITDA
Solid H1 2013 EBITDA H1 2013 EBITDA (€m and as a % of sales) 1,482 784 320 184 234 5.4% 2.6% 4.6% 4.6% 4.1% Asia Europe Latin America France Group 15
Slide 16: Financial Services and Insurance: Growth of key indicators
Financial Services and Insurance: Growth of key indicators Number of cards Oustanding credit Insurance Premiums (millions) (€m) (€m) +1.9% +6.4% +4.6% 5,832 14.9 5,722 154 14.0 147 H1 2012 H1 2013 H1 2012 H1 2013 H1 2012 H1 2013 ● Ongoing development of the Carrefour Banque brand in France ● Success
Slide 17: Financial Services: Growth in net banking income
Financial Services: Growth in net banking income Net Banking Income Recurring Operating Income (1) (€m) (€m) 546 +1.1% 183 551 551 -5.4% 173 546 H1 2012 H1 2013 H1 2012 H1 2013 Share of contribution from financial Geographic Breakdown of ROI services (in %) (in %) Insurance France and Others Rest of
Slide 18: Significant increase of net income
Significant increase of net income (€m) H1 2012 H1 2013 Recurring operating income 730 766 Mainly capital gains Non-recurring items -21 489 EBIT 709 1,254 • Decrease of €40m in debt related net interest expense Net financial expenses -327 -402 • Increase in other financial expenses Net interest expe
Slide 19: Improvement in operating working capital
Improvement in operating working capital Operating Working Capital (1) (in days of COGS) H1 2012 H1 2013 Improvement of 0.9 days Receivables 3.5 2.6 Improvement of 0.8 days (nearly stable at constant exchange rates) Inventories 35.3 34.5 with all Group countries contributing Supplier -57.5 -57.0 lia
Slide 20: Investments up 11%
Investments up 11% Capital expenditure (1) (€m) H1 2012 H1 2013 France(2) 239 353 Europe 133 97 Latin America 124 129 Asia 63 42 • Acceleration of investments in France, mainly remodeling Total 559 620 • Decreased investment in Europe • Continued investment in Latin America and Asia (1) Restated for
Slide 21: Improved free cash flow
Improved free cash flow 6 months 6 months (€m) to June 30th, 2012 to June 30th, 2013 Gross cash flow (ex. discontinued activities) 828 676 Change in working capital -2,415 -2,441 Capital expenditures -559 -620 Change in net payables to fixed asset suppliers -342 -92 Asset disposals (business related
Slide 22: Net debt reduced by €3.7 billion versus June 30th, 2012
Net debt reduced by €3,7 billion versus June 30th, 2012 6 months 6 months (€m) to June 30th, 2012 to June 30th, 2013 Opening net debt (at December 31st) -6,911 -4,320 Free cash flow -2,702 -2,459 Acquisitions -153 -35 Disposals 155 539 Others -59 92 Discontinued activities -5 441 Cash flow after inv
Slide 23: Improved liquidity position
Improved liquidity position Debt redemption schedule (1) Bond issuances as of June 30th, 2013 • €1bn in December 2012 (maturity 2017) (in €m) Maturity before bond buy-back with a 1.875% coupon €1.3bn • €1bn in May 2013 (maturity 2019) 1,250 New bond issuances with a 1.75% coupon 1,000 1,000 1,000 Bo
Slide 24: Conclusion
<6 HALF YEAR RESULTS August 29", 2013 CONCLUSION Pierre-Jean SIVIGNON
Slide 25: Conclusion
Conclusion H1 2013 highlights: • Organic sales growth, significant currency impact • Recurring operating income growth • Continued improvement to financial structure Amid toughening consumption trends worldwide and exchange rate volatility, Carrefour is staying the course Confirmation of 2013 priori
Slide 26: Appendices
<6 HALF YEAR RESULTS August 29", 2013 APPENDICES
Slide 27: Income Statement H1 2013
Income Statement H1 2013 H1 2012 (€m) pro forma H1 2013 % Change Sales, net of taxes 36,777 36,464 -0.8 Sales, net of taxes and loyalty 36,406 36,177 -0.6 Other revenues 1,156 1,184 +2.4 Total revenues 37,563 37,361 -0.5 Cost of goods sold -29,654 -29,374 -0.9 Gross margin from current operations 7,
Slide 28: Consolidated store network H1 2013
Consolidated store network H1 2013 Hyper Super Convenience Cash & Carry TOTAL France 212 523 6 741 Spain 165 114 7 286 Belgium 45 40 85 Italy 43 224 175 19 461 Poland 88 144 232 Turkey 28 216 244 Romania 24 71 95 Europe 393 809 182 19 1,403 Argentina 76 127 273 476 Brazil 197 41 238 Latin America 27
Slide 29: Stores under Group banners (incl. franchisees and partners) H1 2013
Stores under Group banners (incl. franchisees and partners) H1 2013 Hyper Super Convenience Cash & Carry TOTAL France 232 953 3,418 140 4,743 Spain 171 118 123 412 Belgium 45 436 240 721 Italy 45 428 688 19 1,180 Poland 88 144 355 587 Turkey 28 216 244 Romania 24 71 24 119 Other 58 745 803 Europe 45
Slide 30: H1 2012 restatement
H1 2012 restatement H1 2012 result Published Pro forma March 7th, 2013 IFRS 5 IAS 19 H1 2012 Total ROI 740 7 -17 730 Non recurring -63 -2 45 -21 30
Slide 31: Consolidated income statement pro forma 2012
Consolidated income statement pro forma 2012 (€m) 2012 pro forma Sales, net of taxes 75,701 Sales, net of taxes and loyalty 75,048 Other revenues 2,309 Total Revenues 77,357 Cost of sales -60,685 Commercial income 16,672 SG&A -13,033 Recurring operating incomes before D&A (EBITDA) 3,639 Depreciation
Slide 32: Disclaimer
Disclaimer This press release 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