Carrefour Sa · EURONEXT:CA
Carrefour Sa — FY2014 Earnings Presentation
30 slides from Carrefour Sa's earnings presentation, Mar 5, 2015
Slide 1: Full Year Results
FULL YEAR RESULTS MARCH 5TH, 2015 1
Slide 2: Introduction
INTRODUCTION JÉROME BEDIER 2
Slide 3: Financial Results
FINANCIAL RESULTS PIERRE-JEAN SIVIGNON 3
Slide 4: 2014: Growth Momentum Confirmed
2014: GROWTH MOMENTUM CONFIRMED • Acceleration of organic sales growth: +3.9% • Further growth in Recurring Operating Income, up +10.6% at constant currencies • +7.0% in Europe (including France): Further growth in profitability in France, highlighting the dynamism of our multi-format model; rise in
Slide 5: 2014 Highlights: Acceleration of Our Multi-Format Model and Strategic Partnership in Brazil
2014 HIGHLIGHTS: ACCELERATION OF OUR MULTI- FORMAT MODEL AND STRATEGIC PARTNERSHIP IN BRAZIL • Creation of Carmila in April a property company dedicated to enhancing the shopping centers adjoining Carrefour hypermarkets in France, Spain and Italy • Acquisition of DIA France and store networks in Ita
Slide 6: Further Profit Growth in 2014
FURTHER PROFIT GROWTH IN 2014 Variation at Variation at constant current (in €m) 2013 2014 (1) exch. rates exch. rates Net sales 74,888 74,706 +2.9% - 0.2% Net sales excluding petrol 66,911 67,237 +3.9% +0.5% Gross margin 16,847 17,049 +4.9% +1.2% EBITDA (2) 3,669 3,768 +5.9% +2.7% EBITDA margin 4.9
Slide 7: Strong Growth in Organic Sales
STRONG GROWTH IN ORGANIC SALES 2014 sales variation (in €bn and %) +1.1% +3.9% +2.8% +0.1% +2.9% €77.8 -1.1% -0.2% bn €77.1 bn -3.1% €74.9 €74.7 bn bn 2013 LFL Openings/ 2014 Petrol Acquisitions/ 2014 Currencies 2014 net sales Closings ex. petrol impact Disposals net sales at impact net sales organi
Slide 8: Faster Organic Growth in 2014
FASTER ORGANIC GROWTH IN 2014 Organic ex. petrol sales growth by region in 2012, 2013 and 2014 (in %) +18.1% +12.5% +12.3% +3.9% + 2.2% +2.3% +1.0% +1.2% +1.0% +0.2% -1.8% -0.3% -1.6% -2.5% -2.8% France Europe Latin America Asia Group 2012 2013 2014 8
Slide 9: Robust Gross Margin
ROBUST GROSS MARGIN Variation at Variation at Variation at Variation at constant current constant current (in €m) H2 2013 H2 2014 exch. rates exch. rates 2013 2014 exch. rates exch. rates Net sales 38,442 38,836 +2.5% +1.0% 74,888 74,706 +2.9% -0.2% Gross margin 8,861 8,978 +3.3% +1.3% 16,847 17,049
Slide 10: Operating Costs Under Control
OPERATING COSTS UNDER CONTROL Variation at Variation at Variation at Variation at constant current constant current (in €m) H2 2013 H2 2014 exch. rates exch. rates 2013 2014 exch. rates exch. rates Operating and 7,396 7,424 +2.2% +0.4% 14,610 14,662 +4.0% +0.4% asset costs As a % of sales 19.2% 19.2
Slide 11: France: Further Growth in Profitability
FRANCE: FURTHER GROWTH IN PROFITABILITY (in €m) H2 2013 H2 2014 Variation 2013 2014 Variation Net sales 18,491 18,331 +0.6% (1) 35,438 35,336 +1.2% (1) ROI 716 756 +5.6% 1,198 1,271 +6.1% ROI margin % 3.9% 4.1% +20bp 3.4% 3.6% +20bp • Fourth consecutive half of improved profitability versus the prev
Slide 12: Other European Countries: Increase in Profitability
OTHER EUROPEAN COUNTRIES: INCREASE IN PROFITABILITY (in €m) H2 2013 H2 2014 Variation 2013 2014 Variation Net sales 10,044 10,018 -0.4% (1) 19,220 19,191 -0.3% (1) ROI 352 382 +8.5% 388 425 +9.6% ROI margin % 3.5% 3.8% +30bp 2.0% 2.2% +20bp • Third consecutive half of improved profitability • ROI up
Slide 13: Latin America: Remarkable Performance
LATIN AMERICA: REMARKABLE PERFORMANCE Variation at Variation at Variation at Variation at constant current constant current (in €m) H2 2013 H2 2014 exch. rates exch. rates 2013 2014 exch. rates exch. rates Net sales 6,833 7,437 +19.2% (1) +8.8% 13,786 13,891 +18.1% (1) +0.8% ROI 410 438 +18.0% +6.8%
Slide 14: Asia: Evolution of Our Model in China
ASIA: EVOLUTION OF OUR MODEL IN CHINA Variation at Variation at Variation at Variation at constant current constant current (in €m) H2 2013 H2 2014 exch. rates exch. rates 2013 2014 exch. rates exch. rates Net sales 3,073 3,051 -3.9% (1) -0.7% 6,443 6,288 -1.8% (1) -2.4% ROI 33 14 -63.3% -57.6% 131
Slide 15: A Well-Balanced Footprint
A WELL-BALANCED FOOTPRINT Breakdown of Breakdown of 2014 net sales 2014 ROI 19% 28% France 8% Europe ex. France 47% Asia 51% Latin America 4% 26% 17% • Consolidation of our performance in France • Upside in Europe, as illustrated by Spain • Growth in Latin America 15
Slide 16: Growth in Adjusted Net Income, Group Share
GROWTH IN ADJUSTED NET INCOME, GROUPE SHARE (in €m) 2013 2014 Recurring operating income 2,238 2,387 Net imcome from associates and joint ventures 30 37 ROC including associates and joint ventures 2,267 2,423 Capital gain in 2014 linked to the creation of Non-recurring income 144 149 Carmila, partia
Slide 17: Operating Working Capital at December 31st, 2014
OPERATING WORKING CAPITAL AT DECEMBER 31ST, 2014 Operating working capital (in days of COGS) TOTAL -30 -30 Stable operating working capital Clients 2 2 Inventories 35 38 38 The variation in inventory days as a result of the global relaunch of our non-food offer is offset by the variation in supplier
Slide 18: Increase in Investments, in Line with Our Plan
INCREASE IN INVESTMENTS, IN LINE WITH OUR PLAN Investments (in €m) • €252m increase in investments TOTAL 2,159 2,411 • Continued program to bring stores up to standards (investments in maintenance and renovation), particularly in France and Brazil 1,039 France (1) 1,032 • Atacadao’s expansion rate b
Slide 19: Gross Cash Flow Held Up Well
GROSS CASH FLOW HELD UP WELL (in €m) 2013 2014 Gross cash flow (excluding discontinued operations) 2,039 2,504 Change in working capital -284 18 Capital expenditures -2,159 -2,411 Change in net payables to fixed asset suppliers 371 -17 Asset disposals (business related) 117 124 Impact of discontinue
Slide 20: Net Debt at December 31st, 2014
NET DEBT AT DECEMBER 31ST, 2014 (in €m) 2013 2014 Opening net debt (at December 31st) -4,320 -4,117 Free cash flow 26 306 Acquisitions -57 -1,336 Disposals 542 236 Others 2 -5 Discontinued activities 493 11 Cash flow after investments and disposals 1,005 -789 Dividends paid by parent company -108 -1
Slide 21: Improved Credit Rating and Liquidity Position
IMPROVED CREDIT RATING AND LIQUIDITY POSITION Maturity prior to bond buyback 2014 issuance Debt redemption schedule 2015 issuance (in €m) 1,250 Average coupon 1,000 1,000 1,000 1,000 744 750 667 279 5.17% 4.38% 2.44% 5.25% 1.75% 4.00% 3.88% 1.75% 1.25% 2015 2016 2017 2018 2019 2020 2021 2022 2025 •
Slide 22: Proposed Dividend of €0.68 per Share
PROPOSED DIVIDEND OF €0.68 PER SHARE • Dividend of €0.68 proposed at the General Shareholder’s Meeting on June 11th, 2015: • Payout of 46% of adjusted net income, Group share, in line with our policy • Payment in cash or shares 22
Slide 23: Conclusion
CONCLUSION 23
Slide 24: 2015 Outlook
2015 OUTLOOK • Total investments, including DIA France, of between €2.5bn and €2.6bn • Increased free cash flow • Continued strict financial discipline: maintain BBB+ rating 24
Slide 25: Appendix
APPENDIX 25
Slide 26: 2014 Income Statement
2014 INCOME STATEMENT (in €m) 2013 2014 Variation Net sales 74,888 74,706 -0.2% Net sales, net of loyalty 74,299 74,097 -0.3% Other revenues 2,375 2,221 -6.5% Total revenues 76,675 76,318 -0.5% Cost of goods sold -59,828 -59,270 -0.9% Gross margin 16,847 17,049 +1.2% SG&A -13,178 -13,281 +0.8% Recur
Slide 27: Adjusted Net Income, Group Share
ADJUSTED NET INCOME, GROUP SHARE (in €m) 2013 2014 Variation Net Income from continuing operations, Group Share 949 1,182 +24.6% Restatement for non recurring income and expenses (before tax) -144 -149 Restatement for exceptional items in net financial expenses 175 3 Tax impact (1) -42 -10 Restateme
Slide 28: Earnings per Share
EARNINGS PER SHARE € per share 2013 2014 Net income from continuing operations 1.37 1.67 Net income from discontinued operations 0.45 0.09 Net income, Group share 1.82 1.77 Adjusted net income, Group share 1.34 1.47 Weighted average number of shares pre-dilution (in millions) (1) 694.9 707.4 (1) The
Slide 29: Stores under Group Banners at End 2014
STORES UNDER GROUP BANNERS AT END 2014 (INCL. FRANCHISEES AND PARTNERS) Hypermarkets Supermarkets Convenience Cash & Carry TOTAL France 237 960 3,673 143 5,013 Spain 174 123 285 582 Belgium 45 439 260 744 Italy 59 456 624 19 1,158 Poland 96 138 468 702 Romania 27 94 53 174 Other 88 569 345 1,002 Oth
Slide 30: 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