Carrefour Sa · EURONEXT:CA
Carrefour Sa — Investor Day (January 2018)
30 slides from Carrefour Sa's investor day presentation, Jan 23, 2018
Slide 1: Transformation Plan Presentation
TRANSFORMATION PLAN PRESENTATION Become the world leader of the food transition for all <® CARREFOUR 2022 January 23"¢ 2018
Slide 2: 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
Slide 3: Transformation Plan: Carrefour 2022
TRANSFORMATION PLAN Pa. ¥c “CARREFOUR 2022" "Carrefour 2022" is a comprehensive transformation plan to develop profitable growth levers m The Group will regain greater leeway for action thanks to efficiency O and competitiveness gains Investments will be targeted towards value-generating projects an
Slide 4: The Food Transition: A Deep and Global Trend
THE FOOD TRANSITION: A DEEP AND GLOBAL TREND New purchasing behaviors New food consumption demands ee Consume better” rather than “consume more" ee Buy anything, anywhere, anytime” A NEW AMBITION “Become the world leader of the food transition for all” CARREFOUR IS IDEALLY POSITIONED FOR THIS AMBITI
Slide 5: Carrefour 2022 is Structured Around Pillars
“CARREFOUR 2022" IS STRUCTURED AROUND 4 PILLARS o oe Deploy Achieve Overhaul a simplified productivity and the offer and open competitiveness to promote organization gains food quality
Slide 6: Deploy a simplified and open organization
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Slide 7: A Simplified Organization for Swift Execution
oO OO 0 O A SIMPLIFIED ORGANIZATION FOR SWIFT EXECUTION FOCUS ON CUSTOMER-ORIENTED PROJECTS © Cancelation of low-priority projects to increase organization focus SIMPLIFY PROCESSES o Fewer management layers, greater cross-functional coordination NEW TARGETS o Align teams on common targets o Ensure m
Slide 8: A More Open Organization
A MORE OPEN ORGANIZATION G OUTWARD-LOOKING PARTNERSHIP ECOSYSTEM INTERNAL CULTURE OF OPENNESS PURCHASING CUSTOMER EXPECTATIONS IRRIGATING AND SALES PARTNERSHIPS DECISION-MAKING PROCESS CUSTOMERS AND EMPLOYEES STARTUPS/OPEN INNOVATION MORE INVOLVED IN CONTINUOUS IMPROVEMENT PROCESS SPECIALISTS/SECTOR
Slide 9: Achieve Productivity and Competitiveness Gains
ACHIEVE PRODUCTIVITY AND COMPETITIVENESS GAINS
Slide 10: Systematic Cost Discipline
SYSTEMATIC COST DISCIPLINE Powerful savings plan Continuous productivity improvement Gi . ; © Purchasing pooling | Direct purchasing oO Assortment rationalization (~-10%) © Contract pooling (Group) Indirect purchasing O Systematic renegotiations TOTAL SAVINGS 0 Increased controls on spending (as of
Slide 11: Plan to Adjust the Scope of Ex-DIA Stores
PLAN TO ADJUST THE SCOPE OF EX-DIA STORES O Avery heterogeneous store network © Carrefour commercial concepts not always adapted to the catchment area © ~€(150)mn 2017 RO! losses Diagnosis Keep 300+ Exit 273 stores Project of which 180 Contact Marché relevant stores (whose banner will be discontinue
Slide 12: Increased Selectivity and Productivity
Increased selectivity and productivity Full remodelings and hypermarket extensions x) © cost per unit @ LA) Standardization Retum on capital employed Amore relevant allocation A) IT & Omnichannel to support digital ambition Expansion A) in Cash & Carry and convenience stores A MORE EFFICIENT RESOURC
Slide 13: Create an Omnichannel Universe of Reference
Oe CREATE AN OMNICHANNEL UNIVERSE OF REFERENCE
Slide 14: Develop Loyalty Through a Reinforced Carrefour Universe
DEVELOP LOYALTY THROUGH A REINFORCED CARREFOUR UNIVERSE AN OMNICHANNEL CARREFOUR UNIVERSE < BECOME THE LEADER STRENGTHEN STORES IN FOOD E-COMMERCE o Arefocused, powerful and reinforced hypermarket ° Asingle, efficient e-commerce entry point o Arange of unique digital services, leveraging optimized l
Slide 15: 5 Initiatives to Revamp the Hypermarket Format
Sales areas Non-food Pricing Operational efficiency Operating model 5 INITIATIVES TO REVAMP THE HYPERMARKET FORMAT IN LINE WITH ITS FUNDAMENTALS o Adapt sales area to catchment area * Sale of areas to shopping centers ° Creation of outlets >100,000 sqm * Creation, in reserves, of dedicated areas rea
Slide 16: Investment in Growth Formats: Supermarkets and Convenience Stores
C INVESTMENT IN GROWTH FORMATS: SUPERMARKETS AND CONVENIENCE STORES INCREASE DENSITY CAPITALIZE ON MOST SUCCESSFUL IN KEY CITY CENTERS SERVICES AND CONCEPTS © Opening of at least 2,000 convenience stores o Acceleration of innovation in winning concepts in the coming 5 years Examples: Organic, health
Slide 17: Investment in Growth Formats: Cash & Carry
ACCELERATION IN LATIN AMERICA INVESTMENT IN GROWTH FORMATS: CASH & CARRY DEPLOYMENT IN OTHER COUNTRIES Accelerated expansion of Atacadao > +20 stores per year as of 2018, including 5 hypermarket conversions in 2018 ~_ Investment in Maxi banner » 16 hypermarkets converted to Maxi in 2018 Accelerated
Slide 18: Carrefour.fr
(6 Carrefour.fr and our application in France to create a single e-commerce site generalist digital , immediately recognizable Former Ooshop offer absorbed by Carrefour.fr
Slide 19: A Range of Unique Digital Services
GC: HOME DELIVERY DRIVE CLICK & COLLECT A RANGE OF UNIQUE DIGITAL SERVICES, LEVERAGING OPTIMIZED LOGISTICS ASSETS O o Express and regular delivery extended o Order preparation optimization o Expansion of geographical coverage thanks to: * The local convenience store network within each city * Anexte
Slide 20: Invested in Digital Transformation
Invested in digital transformation between 2018 and 2022 2017 2022
Slide 21: A Strengthened Commitment in the Online Non-Food Market
A STRENGTHENED COMMITMENT IN THE ONLINE NON-FOOD MARKET GC: A CLARIFIED NON-FOOD ONLINE OFFER SUPPORTED BY EXTERNAL PARTNERSHIPS o Carrefour.fr will carry Carrefour's generalist non-food offer o Partnership with Showroomprive: * Enlargement of Carrefour's offer * Entry into the growing segment of pr
Slide 22: Launch of a Global Digital Initiative
Launch of a rolled out on a global scale switched to digital within 5 years vs 8% today
Slide 23: Know Our Customers Better and Increase Their Loyalty
CUSTOMER KNOWLEDGE o Identify » LOYALTY o Make loyalty programs truly omnichannel » KNOW OUR CUSTOMERS BETTER AND INCREASE THEIR LOYALTY CUSTOMIZATION o Enrich our data for more relevance purchasing behaviors and preferences and multiformat o More targeted communication o Harmonize databases o Enric
Slide 24: Overhaul the Offer to Promote Food Quality
OVERHAUL THE OFFER TO PROMOTE FOOD QUALITY
Slide 25: Strong Commitment in Upstream
STRONG COMMITMENT IN UPSTREAM BECOME THE FRESH FOOD RETAILER OF CHOICE TRAIN EMPLOYEES TO BETTER SERVE CUSTOMERS o Carrefour quality lines to represent 20% of sourcing by 2020 in France o Launch of an agro-ecology plan by 2018 o Promotion of local production (share of local production increased to 5
Slide 26: Become the Leader of Organic Food Democratization
BECOME THE LEADER OF ORGANIC FOOD DEMOCRATIZATION o Improve access to organic products, rolling out an enlarged offering in all our stores and online o Democratize our organic offering, thanks to price, promotion and loyalty o Expand available information on our websites and in-store to raise consum
Slide 27: Leverage Carrefour Products as Spearheads to Promote Food Quality
LEVERAGE CARREFOUR PRODUCTS AS SPEARHEADS TO PROMOTE FOOD QUALITY FOR ALL o Increased quality standards, in collaboration with customers o Innovative mechanisms to ensure food traceability o Continuation of our efforts to eliminate controversial substances SHARE OF CARREFOUR PRODUCTS (in Group total
Slide 28: Financial Framework Carrefour 2022
FINANCIAL FRAMEWORK CARREFOUR 2022
Slide 29: Clear and Quickly Implemented Initiatives Geared Towards Value Creation
CLEAR AND QUICKLY IMPLEMENTED INITIATIVES GEARED TOWARDS VALUE CREATION REVENUE PROFITABILITY FREE CASH FLOW Expand in growth areas Improve operational leverage Reinforce financial discipline © Omnichannel © Powerful cost reduction plan o Increased selectivity in Capex © Growth formats © Continuous
Slide 30: Carrefour in 2022
CARREFOUR IN 2022 O A banner perceived as the leader in the food transition by customers and employees O An omnichannel player of reference in all its countries O A player that has reinforced its price competitiveness O A model with enhanced efficiency and productivity, to improve value creation and