Carrefour Sa · EURONEXT:CA
Carrefour Sa — Conference Presentation (June 2010)
23 slides from Carrefour Sa's conference presentation, June 2010
Slide 1: Transforming Carrefour to create value
Transforming Carrefour to create value Lars Olofsson, CEO 1
Slide 2: Agenda
Agenda Transforming Carrefour to create value 1. Our plan to transform Carrefour 2. Delivering on our strategy 3. On track to achieve our 2012 objectives 2
Slide 3: 1 – Our plan to transform Carrefour
1 – Our plan to transform Carrefour 3
Slide 4: Carrefour's key strengths
Carrefour’s key strengths The 2nd largest food retailer in the world and number 1 in Europe • €107bn sales under banners in 2009 A balanced presence in both mature and emerging markets • Q1 2010 sales: 41% France, 28% Europe (1) and 31% Emerging markets (2) A unique multi‐format strategy to serve ev
Slide 5: A strategy based on three pillars
A strategy based on three pillars Become the preferred retailer in all our formats to generate a sustainable sales growth Be a leader in all markets priority to France, G4 and main growth markets Improve our organization and operations to ensure better effectiveness, efficiency and profitability Sus
Slide 6: An ambitious 2010-2012 Transformation Plan "en avant!"
An ambitious 2010 - 2012 Transformation Plan « en avant! » to execute our strategy Improve Enhance client culture operating effectiveness & innovation & efficiency Share best practices Revitalize the Carrefour and innovation brand Redefine the Group Improve price image organization Reinvent the hype
Slide 7: A clear roadmap to 2012 for our Transformation Plan
A clear roadmap to 2012 for our Transformation Plan “en avant!” Estimated operating Breakdown of One‐off expenses cost reductions (€m) purchasing savings (€m) (€m)* 2 100 (1) 1 500 1000 150 1000 (1) 20% 400 950 11% (1) 625 1 090 28% 370 500 (3) (1) 280 590 (2) 80 50 41% 2009 2010E 2011 2012 2009 200
Slide 8: A strategy aiming at improving shareholder return
A strategy aiming at improving shareholder return TRANSFORMATION PLAN Customer/consumer Operations To drive Enhance client culture Improve operating To drive growth & innovation effectiveness & efficiency profit Share best practices Revitalize the Carrefour and innovation brand Redefine the Group Im
Slide 9: 2. Delivering on our strategy
2. Delivering on our strategy 9
Slide 10: Delivering on our strategy
Delivering on our strategy: Brand Price image Market share gains Operating decisions Asset portfolio Shareholder return 10
Slide 11: Store banner rejuvenation
Leveraging the attractiveness of our brands Store banner rejuvenation • Ambitious banner convergence program in G4 • New concepts driving strong customer response 11
Slide 12: Product innovation
Leveraging the attractiveness of our brands Product innovation • Successful launch of Carrefour Discount • Increased contribution of Carrefour branded products • 2000 new Carrefour products in 2009 12
Slide 13: Continuing to improve our price image
Continuing to improve our price image Consolidating clear signs of improvement in our price image • Improving in‐store communication • Striking and promising launch of Promolibre in France 110 107.0 Price perception score 105.3 104.3 105 104.0 103.1 103.2 103.3 103.3 102.8 102.8 101.3 100.2 100 95 9
Slide 14: Focus on market share gains in France
Focus on market share gains in France Consolidating market share of 24%* • Strong 80bp market share gains for Carrefour banners on constant selling area year‐to‐date, supported by strong gains at Carrefour Market and flat Carrefour hyper share (Nielsen) • 10bp market share for Carrefour banners, inc
Slide 15: Taking radical operating decisions: costs, capex and organization
Taking radical operating decisions Reviewing Costs, Capex and Organization • Unprecedented cost savings of €590m in 2009 • 30% reduction in capex to about €2.1bn in 2009 • A new organization • A new 7‐person Executive Board focused on strategy • A new Executive Committee to ensure execution 15
Slide 16: Shaking up the group's status quo positions
Taking radical operating decisions Shaking up the group’s status quo positions Belgium: turnaround plan for Italy: refocusing on the sustainable and profitable growth North • New strategic plan presented in February to • Exiting unprofitable South unions, followed by 3 months of negotiation • Improv
Slide 17: Actively managing our asset portfolio
Taking radical operating decisions Actively managing our asset portfolio by freeing up under‐used resources… • Unwinding of our Finiper agreement in Italy • Leading to about €1.6bn positive impact for Carrefour balance sheet compared to the situation of full exercise of Finiper’s put • Decision to e
Slide 18: Reinforcing our presence in key growth countries
Taking radical operating decisions … while reinforcing our presence in key growth countries • Acquisition of supermarket chain Ipek in Turkey • Key partnership in Indonesia with Para CT • Creation of a new joint‐venture with Marinopoulos in the Balkans • Pursuing strong organic growth in China and B
Slide 19: Further improving shareholder return through share buyback
Further improving shareholder return through share buyback • Buyback of 6% of the Group’s share capital over one year • EPS enhancing • Clear signal of confidence in the Transformation Plan • Limited/no impact on financial headroom 19
Slide 20: 3. On track to achieve our 2012 objectives
3. On track to achieve our 2012 objectives 20
Slide 21: 2010 outlook: flawlessly execute our strategy
2010 outlook: flawlessly execute our strategy in a challenging environment • Encouraging sales growth in Q1 • With notable market share gains in France for Carrefour banners • Economic environment remains uncertain in Western Europe • … While Latin America and China continue to perform well, support
Slide 22: On track to reach our 2009-2012 objectives
On track to reach our 2009 - 2012 objectives Confirmed guidance for 2009‐2012 Transformation Plan • €2.1bn operating cost savings, of which €500m in 2010 • €1.0bn purchasing savings, of which €230m in 2010 • €1.4bn or 7‐day reduction in inventories, of which 2 days in 2010 • Increased competitivenes
Slide 23: Transforming Carrefour to create value
Transforming Carrefour to create value Lars Olofsson, CEO 23