Carrefour Sa · EURONEXT:CA
Carrefour Sa — Debt Investor Presentation (October 2006)
28 slides from Carrefour Sa's debt investor presentation, October 2006
Slide 1: Investor Presentation
Investor Presentation October 2006 1
Slide 2: Agenda
Agenda Carrefour: a world leader Business strategy Financial highlights Key credit quality factors Overview of the offering October 2006 2
Slide 3: Carrefour: #1 in Europe and #2 worldwide
Carrefour: #1 in Europe and #2 worldwide • €74.5 billion of consolidated net sales in 2005 • 12,028 stores in 30 countries • Presence and expertise in 4 leading complementary formats: ¾ hypermarket (Carrefour created the concept) ¾ supermarket ¾ hard discount ¾ convenience • €35 billion market capit
Slide 4: Superior geographic diversification
Superior geographic diversification % of sales % of AC (incl. VAT) 3,831 stores under 47,5% 54% France Group banners 9 countries 35% 36% Other Europe 6,681 stores under Group banners 3 countries 6,5% 4% Latin America 885 stores under Group banners 7 countries 7% 6% Asia 424 stores under Group banner
Slide 5: A multi-format retailer
A multi-format retailer % of Sales Hypermarket 58.8% Supermarket 17.8% Hard discount 8.6% Convenience 14.8% + Other Activities October 2006 5
Slide 6: Leadership position in Europe
Leadership position in Europe • Carrefour operates in 9 countries in Europe, representing 85% of Group sales • In 5 countries out of 9, Carrefour is number 1 Countries France Spain Italy Belgium Greece Market position 1 1 1* 1 1 # of formats 5 4 4 4 4 Net sales (€ billion) 35,6 11,9 6,0 4,3 2,0 Data
Slide 7: Leadership position in Asian hypermarkets
Leadership position in Asian hypermarkets • Carrefour is present is 6 countries in Asia, accounting for 8% of Group sales • In 3 countries out of 6, Carrefour is number 1 in hypermarkets Countries China Taiwan Indonesia Market position 1 1 1 # of formats 3 1 1 Net sales (€ billion) 1,7 1,3 0,5 Datas
Slide 8: Leadership position in Latin American hypermarkets
Leadership position in Latin American hypermarkets • We are present in 3 countries in Latin America, accounting for 7% of Group sales • Carrefour is number 1 in Argentina and Brazil in hypermarkets Countries Argentina Brazil Colombia Market position 1 1 2 # of formats 3 2 1 Net sales (€ billion) 1,2
Slide 9: Agenda
Agenda Carrefour: a world leader Business strategy Financial highlights Key credit quality factors Overview of the offering October 2006 9
Slide 10: Our strategy: profitable growth
Our strategy: profitable growth Our strategy: the virtuous cycle of growth and profitability Improved purchase terms/ Sales growth Lower costs Price competitiveness Higher margins October 2006 10
Slide 11: Our strategy: profitable growth
Our strategy: profitable growth The foundations for profitable growth are in place 1. More focused and faster organic growth: more sq.m opened in fewer countries X2 2001-2004 2006-2008 0.8 million sq.m of new 1.5 million sq.m of new space annually space annually (CAGR +5.2%) (CAGR +9.8%) Our objecti
Slide 12: Our strategy: profitable growth
Our strategy: profitable growth The foundations for profitable growth are in place 2. Optimized business portfolio: • 2005-2006 disposals: our asset portfolio has been optimized by disposing of insufficiently profitable or non-strategic activities ¾ Mexico ¾ Japan ¾ Czech Republic and Slovakia ¾ Sou
Slide 13: Our strategy: profitable growth
Our strategy: profitable growth The foundations for profitable growth are in place 3. Customer focus: • Maintain our price offensive • Improve our understanding of what customers expect • Develop our product mix • Develop product mixes locally to reflect our customers’ lifestyles • Strengthen catego
Slide 14: Our strategy: profitable growth
Our strategy: profitable growth The foundations for profitable growth are in place 4. Renewed innovation: we have revised our approach to formats, making them easier to adapt • Small-format hypermarkets now developed under the Carrefour name • New formats developed: Carrefour Express and Maxi Dia Ol
Slide 15: Agenda
Agenda Carrefour: a world leader Business strategy Financial highlights Key credit quality factors Overview of the offering October 2006 15
Slide 16: Financial highlights
Financial highlights 2005 H1 2005 H1 2006 H1 2006 vs. H1 (€ MM) (€ MM) (€ MM) 2005 Sales (net of taxes) 74.497 34.272 37.298 8,8% EBITDA 4.619 2.003 2.129 6,3% Activity Contribution, bef. Depreciation (ACDA) 4.649 1.990 2.139 7,5% Activity Contribution 3.175 1.295 1.355 4,7% Net result before discon
Slide 17: Increasing cash flows, decreasing net debt
Increasing cash flows, decreasing net debt Net Debt / EBITDA (€ mn) (€ mn) 10.000 2,5 9.000 8.000 1,9 2,0 7.000 1,6 6.000 1,4 1,5 1,5 5.000 4.000 1,0 3.000 2.000 0,5 1.000 - - 2002 2003 2004 2005 Net Debt EBITDA Ratio (ND/EBITDA) October 2006 17
Slide 18: Increasing cash flows, decreasing net debt
Increasing cash flows, decreasing net debt EBITDA / Net Interest (€ mn) (€ mn) 6.000 11,0 10,5 5.000 10,5 10,2 4.000 10,0 9,7* 3.000 9,5 2.000 9,0 8,9 1.000 8,5 - 8,0 2002 2003 2004 2005 EBITDA Net interest Ratio (EBITDA / Net interest) * Linked to the first-time adoption of IFRS October 2006 18
Slide 19: Agenda
Agenda Carrefour: a world leader Business strategy Financial highlights Key credit strengths Overview of the offering October 2006 19
Slide 20: Key credit strengths
Key credit strengths • Highly predictable and cash generative business model • Low-risk, non-cyclical business • European leader in the food retail sector and number two worldwide through a large variety of stores format • Large portion of sales generated in mature and stable markets • Long-standing
Slide 21: Credit rating downgrade to A2/A
Credit rating downgrade to A2/A We are currently rated A/Stable by Standard and Poor’s and A2/Stable Moody’s • Clear rationale: downgrade reflects decision to pursue a more aggressive expansion strategy, not a reflection of the health of our underlying operations (which remain very strong) • The dec
Slide 22: S&P comparison of European retailers
S&P comparison of European retailers Eur billion Carrefour Tesco Casino Auchan Rating A stable A+ stable BBB- stable A stable Business profile Excellent Excellent Strong Strong Financial profile Conservative Conservative Aggressive Conservative Total sales 75.5 57.2 23 33.6 EBITDA / sales (%) 6.4 8.
Slide 23: Conservative debt and exchange rate management
Conservative debt and exchange rate management • 90% of total debt is directly managed by the Group Treasury division (only 10% in countries, mostly with partnerships, with regular follow-up) • 96% of debt in € (post swaps) • No speculation on exchange rates: all Group commercial and financial trans
Slide 24: Financial flexibility
Financial flexibility Carrefour's liquidity position Gross debt 10.497 Greater than 5 years 3.403 Committed banklines 5.695 Financing undrawn reserve * 6.532 4.199 1 year to 5 years 1.976 Marketable securities 2.895 Less than 1 year 1.756 Cash in millions of Euros * Marketable securities + committed
Slide 25: Carrefour: a unique proposition
Carrefour: a unique proposition • Global food retailer with leadership position in Europe • Substantial diversification through multi-format strategy and worldwide presence • Significant international experience and presence with leadership in main markets (e.g France, China) • Strength and diversit
Slide 26: Agenda
Agenda Carrefour: a world leader Business strategy Financial highlights Key credit quality factors Overview of the offering October 2006 26
Slide 27: The offer: overview of the offering
The offer: overview of the offering Issuer Carrefour S.A. Credit ratings A2 / A Format Euro Benchmark Maturity TBD Documentation EMTN Governing law French Listing Luxembourg Use of proceed General Corporate Purposes (Debt refinancing) Timing Launch and Pricing this week October 2006 27
Slide 28: Investor Presentation
Investor Presentation October 2006 28
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