Carrefour Sa · EURONEXT:CA
Carrefour Sa — Debt Investor Presentation (September 2007)
33 slides from Carrefour Sa's debt investor presentation, September 2007
Slide 1: New Debt Issue Investor Presentation
New Debt Issue Investor Presentation September 2007
Slide 2: Carrefour Group Representatives
Carrefour Group Representatives Eric Reiss Chief Financial Officer Jean-Brieuc Le Tinier Director of Corporate Treasury 2 September 2007 New Debt Issue Investor Presentation
Slide 3: Summary
Summary Group Overview Business Strategy Financial overview Key credit strengths Offering summary 3 September 2007 New Debt Issue Investor Presentation
Slide 4: Group Overview
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Slide 5: The Carrefour group today
Group Overview The Carrefour group today * No. 1 mass retailer in Europe and No. 2 worldwide €77.9 billion of consolidated net sales in 2006 Presence and expertise in 4 leading complementary formats – Hypermarket – Supermarket – Hard Discount – Convenience Over 450,000 colleagues worldwide 12,547 st
Slide 6: 12,547 stores in 30 countries
Group Overview 12,547 * stores in 30 countries France Europe (excl. 3,993 trade France) name stores, 7,109 trade incl. name stores overseas territories: 114 trade name stores Asia Middle East 465 trade name North Africa stores 25 trade name stores America 955 trade name stores * As of December 31, 2
Slide 7: Breakdown by geographic region
Group Overview Breakdown by geographic region as of June 30, 2007 Net Sales Net Sales in € million (excl. tax, under Group banners) (excl. tax, under Group banners) Asia 2 760 Asia Americas Americas 7% 9% 3 480 France France 47% 18 126 Europe Europe (excl. France) (excl. France) 37% 14 478 Activity
Slide 8: Complementary multi-format retailers
Group Overview Complementary multi-format retailers Stores for every lifestyle (Trade Names) Hypermarket Supermarket Hard discount Convenience Cash & Carry e-commerce 8 September 2007 New Debt Issue Investor Presentation
Slide 9: Leadership position in Europe
Group Overview Leadership position in Europe as of June 30, 2007 Carrefour operates in 10 countries in Europe, representing 84% of Group net sales of H1 2007 In 5 countries out of 10, Carrefour is number 1 Countries France Spain Italy Belgium Greece Market position 1 1 1* 1 1 # of formats 5 4 4 4 4
Slide 10: Leadership position in Latam hypers
Group Overview Leadership position in Latam hypers as of June 30, 2007 We are present in 3 countries in Latin America, accounting for 9% of Group net sales of H1 2007 Carrefour is number 1 in Argentina and Brazil in hypermarkets Countries Argentina Brazil Market position 1 1 # of formats 3 2 Net sal
Slide 11: Leadership position in Asian hypers
Group Overview Leadership position in Asian hypers as of June 30, 2007 Carrefour is present is 6 countries in Asia, accounting for 7% of Group net sales of H1 2007 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
Slide 12: Business strategy
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Slide 13: Our strategy: profitable growth
Business strategy Our strategy: profitable growth Sales growth (comparable stores, Market share development) Competitiveness Purchasing conditions investment Amortization ACDA of fixed costs Free Cash Flow 13 September 2007 New Debt Issue Investor Presentation
Slide 14: Our strategy: profitable growth
Business strategy Our strategy: profitable growth Free Cash Flow Investment Managing Profitable growth working capital 14 September 2007 New Debt Issue Investor Presentation
Slide 15: Levers for value creation
Business strategy Levers for value creation Lever 1: Making the brand work harder and generating cash Lever 2: Optimising cash allocation Lever 3: Managing the balance sheet actively and leveraging property assets 15 September 2007 New Debt Issue Investor Presentation
Slide 16: Making the brand work harder and generating cash (1/2)
Business strategy 1. Making the brand work harder and generating cash (1/2) Strengthening our Faster growth commercial model in new m² Multi-format, single to drive like for (openings + brand, strategy likes expansion) Annual sales growth of 6% - 8% * * Ex acquisitions 16 September 2007 New Debt Iss
Slide 17: Making the brand work harder and generating cash (2/2)
Business strategy 1. Making the brand work harder and generating cash (1/2) Price competitiveness Annual operating cost and stable commercial reduction of 0.10% margin of sales Activity Contribution to Better management of grow at least in line with capex and working sales capital Free Cash Flow of
Slide 18: Optimising capital allocation
Business strategy 2. Optimising capital allocation Further Continuous review / Active and rigorous rationalisation divestment of non tactical acquisition (€1.5bn disposal strategic assets strategy program 2007-08) ROCE improvement, strong balance sheet and cash flow generation 18 September 2007 New
Slide 19: Managing the balance sheet actively and leveraging property assets
Business strategy 3. Managing the balance sheet actively and leveraging property assets Free Cash Flow of Divestment of non Leverage of €1.5bn per annum strategic assets property portfolio Financing of Share buybacks to organic growth and increase yield acquisitions Maximising value creation and str
Slide 20: Carrefour Property: the envisaged transaction
Business strategy 3. Managing the balance sheet actively and leveraging property assets Carrefour Property: the envisaged transaction – Creation of a dedicated real estate vehicle for Carrefour in Europe – Carrefour to retain long term control of real estate subsidiary – Capital raising of around €3
Slide 21: Share buyback program of €4.5 bn
Business strategy 3. Managing the balance sheet actively and leveraging property assets Share buyback program of €4.5 bn – Dividends to grow in line with net income Group share – Share buyback of €4.5 bn • Around €1.0 bn before April 2008 funded primarily with the proceeds from non-core assets dispo
Slide 22: Financial overview
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Slide 23: Income Statement – H1 2007
Financial overview Income Statement – H1 2007 € Million H1 2007 H1 2006** Change Net sales 38,845 36,823 +5.5% Commercial margin 8,750 8,325 +5.1% % of net sales 22.5% 22.6% SG&A (excl. rents) (6,091) (5,780) +5.4% Rents (471) (418) +12.6% ACDA* 2,187 2,128 +2.8% % of net sales 5.6% 5.8% Depreciatio
Slide 24: Income Statement – H1 2007
Financial overview Income Statement – H1 2007 € Million H1 2007 H1 2006 Change Activity Contribution 1,364 1,360 +0.3% Non-recurring income 23 (9) NA (expenses) EBIT 1,387 1,351 +2.7% Financial costs (248) (239) +4.0% Tax charge (329) (328) +0.3% Tax rate 28.9% 29.5% Minorities (71) (60) +17.7% Asso
Slide 25: Free Cash Flow Generation
Financial overview Free Cash Flow Generation € Million H1 2007 H1 2006 Change Cash Flow 1,637 1,587 +3.1% Change in Working Capital (2,030) (2,725) €695m Capex (1,144) (1,161) Free Cash Flow (1,945) (2,967) €1,022m Financial investments (1,021) (485) Cash Flow after investments and disposals (2,962)
Slide 26: Solid key financial ratios
Financial overview Solid key financial ratios € Million H1 2007 H1 2006 Net debt at 30 June 2007 10,212 10,831 ACDA / Financial costs 8.8x 8.9x Gearing 97% 119% Cash Flow / Net debt 16% 15% 26 September 2007 New Debt Issue Investor Presentation
Slide 27: Key credit strengths
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Slide 28: Key credit quality factors
Key credit strengths Key credit quality factors Highly predictable and cash generative business model Low-risk, non-cyclical business European #1 in the food retail sector and #2 worldwide through a large variety of stores format Large portion of sales generated in mature and stable markets Long-sta
Slide 29: Carrefour pursues an active dialogue with rating agencies
Key credit strengths Credit rating affirmed at A2/A with a stable outlook Rating agencies have affirmed Carrefour’s rating in the wake of the 30th of August announcement Moody's affirms A2 senior unsecured rating of Carrefour; Stable outlook. (…) The affirmation follows the company's announcement of
Slide 30: Conservative financial risks management
Key credit strengths Conservative financial risks 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 financi
Slide 31: Carrefour: a unique proposition
Key credit strengths 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, Brazil)
Slide 32: Offering summary
NouAz yika Bl 94 groupeearrefour 7 | | Offering summary
Slide 33: The proposed offer
Offering summary The proposed offer Issuer: Carrefour SA Ratings: A2 stable / A stable Ranking: Senior Unsecured Change of Control: coupon step-up Use of Proceeds: General Corporate Purposes Tenor: 7-year Euro Notes due 2014 Format: Euro Benchmark Documentation: EMTN Governing law: English Listing:
Carrefour — Debt Investor Presentation (September 2007) on 6ix