Slide 1: FY 2019 Results
FY 2019 Results February 27, 2020
Slide 2: Highlights
Highlights FULL-YEAR 2019 RESULTS AMBITIONS REVISED UPWARDS Clear improvement in 2019 results, notably driven by Building on the first successes of its transformation France and Latin America plan, Carrefour is completing and revising upwards its targets Acceleration to +3.1% LFL sales growth Improv
Slide 3: Carrefour 2022 Recent initiatives
01 Carrefour 2022 Recent initiatives
Slide 4: Leader in the food transition for all
Leader in the food transition for all FOOD QUALITY Organic product sales (€bn) • Expansion of blockchain technology: 28 products from Carrefour Quality Lines (FQC) or national brands • Reformulation of 2,300 Carrefour-branded products since the start of the plan DEVELOPMENT OF THE ORGANIC OFFER >+25
Slide 5: Construction of a sustainable and profitable growth model (1/2)
Construction of a sustainable and profitable growth model (1/2) PRIORITY TO CUSTOMER SATISFACTION • NPS® progression in all countries • NPS® progression over time contributes to the improvement in LFL • NPS® generalized and incorporated into the variable remuneration scheme (since 2019) Group NPS® u
Slide 6: Construction of a sustainable and profitable growth model (2/2)
Construction of a sustainable and profitable growth model (2/2) PROFOUND REVAMP OF HYPERMARKETS • Reduction of underproductive non-food sales area: c.115,000 sqm at end-2019 (o/w c.55,000 sqm in France) • Continued adaptation of the non-food offer • Roll-out of specialist areas (Bio Experience in or
Slide 7: Operational efficiency and financial discipline
Operational efficiency and financial discipline CONTINUED ACTIONS TO IMPROVE OPERATIONAL PERFORMANCE AND TRANSFORM ORGANIZATIONS ORGANIZATIONAL TRANSFORMATION • Collective Contractual Severance agreement finalized in French hypers (~3,000 people) • In Italy, headcount reduction plan completed with 5
Slide 8: Accelerating Cash & Carry expansion with acquisition of Makro stores in Brazil
Accelerating Cash & Carry expansion with acquisition* of 30 Makro stores in Brazil for R$ 1.95bn Transaction scope Strong geographic complementarity 30 stores 14 gas 165,000 Gross sales of (22 fully-owned stations sq.m ~R$ 2.8bn and 8 rented) in 2019 of sales area Expected benefits 2 1 1 1 1 1 1 1 1
Slide 9: Financial analysis
02 Financial analysis
Slide 10: Key financial highlights
Key financial highlights POWERFUL TRANSFORMATION MOMENTUM TRANSLATING IN NUMBERS 2017 2019 reported pre-IAS 29 pre-IFRS 16 Acceleration of LFL sales growth LFL +1.6% +3.1% Turnaround in profitability trend with growing ROI ROI EVOLUTION at constant -€403m +€145m Significant reduction in net financ
Slide 11: FY 2019 sales: Accelerating growth, +3.1% LFL
FY 2019 sales: Accelerating growth, +3.1% LFL +3.1% -0.0% +1.2% -0.9% -1.2% +2.1% -2.4% -0.4% €(63)m -0.4% -0.1% -0.1% +14.6% +1.3% France Europe LatAm Asia €81.0 €82.7 €80.7 €80.7 bn bn bn bn FY 2018 LFL Calendar Openings Scope, Petrol FY 2019 Forex FY 2019 IAS 29 FY 2019 restated ex petrol closure
Slide 12: Results impacted by FX
Results impacted by FX 2019 CURRENCY Evolution -2.4% Brazilian Real -2.4% negative FX impact on 2019 Gross Sales Argentine Peso -38.8% Polish Zloty -0.8% -€36m negative FX impact on Romanian Leu -1.9% 2019 ROI* Taiwanese Dollar +2.8% 2019 RESULTS – 27/02/2020 * pre-IAS 29 (hyperinflation in Argentin
Slide 13: 2019 ROI growth of +7.4% (at constant exchange rates)
2019 ROI growth of +7.4% (at constant exchange rates) 2018 2019 2018 2019 Evolution IFRS 5 IFRS 5 IFRS 5 IFRS 5 in €m at constant FX pre-IAS 29 pre-IAS 29 post-IAS 29 post-IAS 29 (€m / %) pre-IFRS 16 pre-IFRS 16 pre-IFRS 16 post-IFRS 16 Net sales 72,553 72,450 +3.1% LFL 72,355 72,397 Gross margin fr
Slide 14: Cost-reduction program ahead of plan with €1,030m in 2019
Cost-reduction program ahead of plan with €1,030m in 2019 after €930m in 2018 COGS Distribution costs Cost-savings plan (excl. China) €2.6bn €2.8bn First gains recorded from joint Simplified and agile purchasing across Carrefour organisations €2.0bn geographies Efficiency measures implemented €1.4
Slide 15: France: Strong growth in ROI up +15.6%
France Strong growth in ROI up +15.6% 2018 2019 2019 in €m IFRS 5 IFRS 5 % change IFRS 5 pre-IFRS 16 pre-IFRS 16 post-IFRS 16 Net sales 35,615 34,765 -2.4% 34,765 LFL ex. petrol ex. calendar -0.1% ROI 466 539 +15.6% 547 ROI margin 1.3% 1.6% +24bp 1.6% France 2019 ROI at €539m, up +€73m (+15.6%) Incr
Slide 16: Other European countries
Other European countries Intensification of the transformation plan 2018 2019 2019 % change at % change at in €m IFRS 5 IFRS 5 IFRS 5 current FX constant FX pre-IFRS 16 pre-IFRS 16 post-IFRS 16 Net sales 21,076 20,999 -0.4% -0.1% 20,999 LFL ex. petrol ex. calendar -0.1% ROI 664 647 -2.7% -2.5% 657 R
Slide 17: Latin America
Latin America Solid ROI improvement driven by sales growth 2018 2019 2018 2019 IFRS 5 IFRS 5 % change at % change at IFRS 5 IFRS 5 in €m pre-IAS 29 pre-IAS 29 current FX constant FX post-IAS 29 post-IAS 29 pre-IFRS 16 pre-IFRS 16 pre-IFRS 16 post-IFRS 16 Net sales 14,007 14,718 +5.1% +16.8% 13,809 1
Slide 18: Asia (Taiwan)
Asia (Taiwan) Continued growth in profitability 2018 2019 2019 % change at % change at in €m IFRS 5 IFRS 5 IFRS 5 current FX constant FX pre-IFRS 16 pre-IFRS 16 post-IFRS 16 Net sales 1,855 1,968 +6.1% +3.2% 1,968 LFL ex. petrol ex. calendar +1,3% ROI 77 85 +11.0% +8.0% 83 ROI margin 4.2% 4.3% +19bp
Slide 19: Increase in adjusted net income, Group share, to €905m
Increase in adjusted net income, Group share, from continuing operations to €905m 2018 2019 IFRS 5 IFRS 5 in €m pre-IAS 29 pre-IAS 29 pre-IFRS 16 pre-IFRS 16 Recurring operating income 1,971 2,080 Net income from associates and JV's 14 2 Mainly related to Carrefour 2022 Non-recurring income and expe
Slide 20: Improvement of +€186m in free cash-flow generation
Improvement of +€186m in free cash-flow generation (excl. exceptional items and discontinued operations) 2018 2019 IFRS 5 IFRS 5 in €m Variation pre-IAS 29 pre-IAS 29 pre-IFRS 16 pre-IFRS 16 EBITDA 3,415 3,485 69 Income tax paid (505) (499) 6 Financial result (excl. cost of debt and interest related
Slide 21: Net debt reduction of c.€1bn
Net debt reduction of c.€1bn (at constant exchange rates) +€965m improvement inc. €719m cash-out related to exceptional items and discontinued operations 275 1,301 (719) 910 (165) (70) (214) (148) €3,785m €3,510m Total FCF €2,545m €2,615m €582m Dec 31, IAS 17 Dec 31, FCF (excl. Exceptional Disposals
Slide 22: Enhanced liquidity and solid balance sheet
Enhanced liquidity and solid balance sheet Debt redemption schedule (in €m) Successful operation in May 2019: issuance of €500m bonds with a maturity of 8 years and 1.00% coupon 4.00% 3.88% Successful bond redemption for €327m in November 2019 1.75% 1.25% 1.75% 0.49% 0.51% 1.00% At end-December 2019
Slide 23: Stable dividend
Stable dividend Dividend of €0.46 (stable vs 2018) Representing a 5% discount for dividend Payment in shares total amount of c.€367m payment in shares or in cash proposed to the (vs. 10% last year) General shareholders’ meeting on May 29, 2020 2019 RESULTS – 27/02/2020 23
Slide 24: 2020 focus and new ambitions
2020 focus and new ambitions 2020 focus: Customer satisfaction FINANCIAL OUTLOOK NEW: €2.8bn cost Operational targets reduction plan (vs €2.6bn) on an annual basis by 2020 • NEW: Group NPS up +15 points over 2020-22 period • Reduction of 350,000 sqm hypermarket sales area worldwide by 2022 €4.2bn of
Slide 25: H1 2020 agenda
During the week of March 30, 2020 Carrefour Brazil Investor Day in Sao Paulo April 28, 2020 First-quarter 2020 sales May 29, 2020 General Shareholders’ Meeting June 25, 2020 Thematic event on customer satisfaction H1 2020 agenda in Madrid
Slide 26: Appendix
& Appendix February 27, 2020
Slide 27: Full year 2019 gross sales
Full year 2019 gross sales Change at Change at current LFL Organic growth Gross sales constant exch. rates inc. ex. petrol ex. petrol (in €m) exch. rates inc. petrol ex. calendar ex. calendar petrol France 38,861 -2.6% -2.6% -0.1% -1.4% Hypermarkets 20,021 -3.6% -3.6% -2.1% -2.6% Supermarkets 12,818
Slide 28: Net sales and recurring operating income per region
Net sales and recurring operating income per region NET SALES RECURRING OPERATING INCOME 2018 2019 2018 2019 Variation Variation Variation Variation IFRS 5 IFRS 5 IFRS 5 IFRS 5 at constant at current at constant at current pre-IAS 29 pre-IAS 29 pre-IAS 29 pre-IAS 29 in €m exch. rates exch. rates exc
Slide 29: Net sales and recurring operating income per region
Net sales and recurring operating income per region NET SALES RECURRING OPERATING INCOME 2018 2019 2018 2019 Variation Variation Variation Variation IFRS 5 IFRS 5 IFRS 5 IFRS 5 at constant at current at constant at current post-IAS 29 post-IAS 29 post-IAS 29 post-IAS 29 in €m exch. rates exch. rates
Slide 30: 2019 income statement
2019 income statement 2018 2019 2019 IFRS 5 IFRS 5 IFRS 16 IAS 29 IFRS 5 in €m pre-IAS 29 pre-IAS 29 impact impact post-IAS 29 pre-IFRS 16 pre-IFRS 16 post-IFRS 16 Net Sales 72,553 72,450 - (53) 72,397 Net sales, net of loyalty program costs 71,926 71,705 - (53) 71,651 Other revenue 2,439 2,525 (34)
Slide 31: Key restructuring initiatives underpin powerful cost reduction momentum
Key restructuring initiatives underpin powerful cost reduction momentum Initiatives’ status Key initiatives Savings recognition (all completed) 273 ex-Dia stores to be removed from All stores sold or closed at Ex-Dia scope discontinued DIA Group scope end July 2018 from January 1st, 2018 Finalized C
Slide 32: Non-recurring income and expenses
Non-recurring income and expenses 2018 2019 IFRS 5 IFRS 5 in €m pre-IAS 29 pre-IAS 29 pre-IFRS 16 pre-IFRS 16 Related to Carrefour 2022 transformation Restructuring costs (710) (550) initiatives, notably in France and Italy Impairment and asset write-offs (185) (194) Incl. RueDuCommerce, Showroompri
Slide 33: Tax expense
Tax expense 2018 2019 IFRS 5 IFRS 5 in €m pre-IAS 29 pre-IAS 29 pre-IFRS 16 pre-IFRS 16 Income before taxes 544 891 Non-recurring income and expenses, net 1,127 920 Income before taxes 1,671 1,811 (excl. non-recurring income and expense) Mainly reflects a reduction in income tax Full-year normative
Slide 34: Earnings per share
Earnings per share 2018 2019 2018 2019 IFRS 5 IFRS 5 IFRS 5 IFRS 5 pre-IAS 29 pre-IAS 29 post-IAS 29 post-IAS 29 pre-IFRS 16 pre-IFRS 16 pre-IFRS 16 post-IFRS 16 (€ per share) Net income from continuing operations, Group share (0.27) (0.24) (0.24) 0.04 Net income from discontinued operations, Group
Slide 35: Free cash-flow generation
Free cash-flow generation 2018 2019 2019 IFRS 5 IFRS 5 IFRS 16 IAS 29 IFRS 5 in €m Variation pre-IAS 29 pre-IAS 29 impact impact post-IAS 29 pre-IFRS 16 pre-IFRS 16 post-IFRS 16 EBITDA 3,415 3,485 69 942 (10) 4,417 Income tax paid (505) (499) 6 - 0 (499) Financial result (excl. cost of debt and inte
Slide 36: China disposal
China disposal Bridge EqV / EV Cash impact in 2019 Enterprise Value €1,435m Purchase price for 80%, net of fees €612m Operating debt related to shopping cards €(456)m Net financial cash/debt €(13)m Value of minorities interest €(229)m Cash impact €599m Net financial cash/debt €24m Equity Value €774m
Slide 37: Stores under banners at end-2019
Stores under banners at end-2019 (#) Hypermarkets Supermarkets Convenience Cash & Carry Total France 248 1,071 3,959 146 5,424 Other European countries 455 1,798 2,646 60 4,959 Spain 205 111 810 23 1,149 Italy 51 417 608 13 1,089 Belgium 40 441 308 0 789 Poland 89 153 664 0 906 Romania 37 266 44 24
Slide 38: 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 materially