Carrefour Sa · EURONEXT:CA
Carrefour Sa — Investor Day (November 2021)
92 slides from Carrefour Sa's investor day presentation, Nov 9, 2021
Slide 1: Digital Acceleration for Retail & Ecommerce
DIGITAL ACCELERATION FOR RETAIL & ECOMMERCE November 9, 2021
Slide 2: Alexandre Bompard, Chairman and CEO
Chairman and CEO, ALEXANDRE BOMPARD Carrefour 2
Slide 3: Carrefour: a winning position built in only 3 years
Carrefour: a winning position built in only 3 years x3 +3m +11pts e-Commerce food Online customers Profitability GMV since 2018 during COVID increase in 2 years +15pp growth/year vs. market 3
Slide 4: A unique dual network of e-commerce preparation points
A unique dual network of e-commerce preparation points 3,700+ 45 e-commerce-enabled stores e-commerce fulfillment centers 4
Slide 5: State-of-the-art tech foundations
State-of-the-art tech foundations Omnichannel Next-gen capabilities infrastructure Digital platforms and services 30% public Full cloud 800m visits cloud by 2026 per year 5
Slide 6: The largest data lake in Europe
The largest data lake in Europe Global data lake Unified country data platforms 8bn transactions (3 years) … 6
Slide 7: A proven track record for our digital future
A proven track record for our digital future x3 +3m +11pts 800m 30% 8bn e-Commerce Online customers Profitability Digital visits Public Transactions food GMV during COVID increase in 2 years per year cloud in our global since 2018 data lake 7
Slide 8: When customers turn to omnichannel they create additional value
When customers turn to omnichannel they create additional value Carrefour offline Becoming omnichannel customer customer +22% GMV Spending Basket +7% by customer Frequency +15% Carrefour figures based on our operations in France, Spain and Brazil, 2019-2021 8
Slide 9: Omnichannel customers create additional value for Carrefour
Omnichannel customers create additional value for Carrefour Average spending per customer Offline customer Omnichannel customer +22% +27% M M+12 M+24 9
Slide 10: 3 trends reshaping the market
3 trends reshaping the market Speed Digital convenience Customization 10
Slide 11: Taking the lead on emerging trends
Taking the lead on #1 emerging trends in Home Delivery in Continental Europe #1 retailer to jump First mover on Already successful on quick social commerce personal shopper commerce model 11
Slide 12: €10bn e-commerce GMV by 2026
€10bn e-commerce GMV by 2026
Slide 13: Generating new sources of value through data
Generating new sources of value through data Global data lake Marketing Operations efficiency improvement Customer experience New revenue enhancement streams 13
Slide 14: Stepping stone to becoming the European leader in retail media
Stepping stone to becoming the European leader in retail media Carrefour Links 14
Slide 15: Digitization of financial services, embedded in retail
Digitization of financial services, embedded in retail 15
Slide 16: Digital ROI to increase by 2026
Digital ROI to increase by by 2026 16
Slide 17: Building a better business model powered by digital
Building a better business model Turning customers to omnichannel Digital-centric More online traffic culture and 1st party data Partnerships Better service and venture capital Innovating Digitizing and more personalization New profitable Creating Wider range of offers revenue streams value Growing
Slide 18: The future of retail belongs to those who offer a seamless ecosystem
The future of retail belongs to those who offer a seamless ecosystem Pure online Local retailers retailers International footprint Digital scale Multiformat and omnichannel Retention and frequency Best-in-class Gaps vs. competition 18
Slide 19: Elodie Perthuisot
Executive Director E-commerce, ELODIE PERTHUISOT Data and Digital Transformation, Carrefour 19
Slide 20: What you will hear from me today
What you will hear from me today Proof Granular figures Action plans Facts demonstrating A transparent deep dive A concrete strategy our strategy into our digital businesses to reach our ambitious goals 20
Slide 21: €10bn e-commerce GMV by 2026
€10bn e-commerce GMV by 2026 21
Slide 22: The e-grocery market is reshaping fast
The e-grocery market is reshaping fast Attraction Convenience Click Home delivery Same-day Express delivery Quick commerce & Collect D+1 delivery < 3h < 15 min 2021 market Fast-growing market segments 22
Slide 23: New fulfillment centers, same-day delivery by 2023
New fulfillment centers Same-day delivery of orders by 202323
Slide 24: Exponential growth in the new French express delivery service
Exponential growth in the new French express delivery service Run rate GMV in one year 24
Slide 25: Uniquely positioned for quick commerce and express delivery
Uniquely positioned for quick commerce and express delivery 1,000 Urban e-commerce enabled micro-fulfillment centers convenience stores 25
Slide 26: We will keep accelerating with Uber
We will keep accelerating with Uber EXCLUSIVELY WITH 26
Slide 27: The e-grocery market is reshaping fast
The e-grocery market is reshaping fast Attraction Convenience Click & Collect Home delivery D+1 Same-day delivery Express delivery Quick commerce Carrefour Home Delivery solutions Corner shop Uber Eats Uber Eats Key partners Rappi Deliveroo Logistics Fulfillment centers and stores Micro-fulfillment
Slide 28: Our battle plan
Our battle plan 2026 market share in e-grocery by 2026 in both countries +52 Fulfillment centers +11 +75% Population covered by express delivery +65% 28
Slide 29: Market leader in B2B e-commerce in Brazil by 2026
Market leader in B2B e-commerce in Brazil by 2026 st B2B marketplace B2B network New app Financial services for B2B 29
Slide 30: Making smart moves in non-food e-commerce
Making smart moves in non-food e-commerce Key verticals Marketplaces SKUs in France in 2022 30
Slide 31: Key trends in non-food e-commerce
Key trends in non-food e-commerce Drop Second- shipment hand 31
Slide 32: Social commerce: becoming the retail market leader
Social commerce Becoming the retail market leader million viewers in 2021 32
Slide 33: Seamless customer experiences will accelerate omnichannel
Seamless customer experiences will accelerate omnichannel average spending per omnichannel customer Social Digital receipts Digital catalogues e-commerce 33
Slide 34: A digital factory with an established track record
A digital factory with an established track record x2 60% 30% Conversion rate in 2 years in France Digital credit production in Brazil Baskets personalized in France 34
Slide 35: By 2026: yearly visits on our digital assets
By 2026 yearly visits on our digital assets of omnichannel customers35
Slide 36: Unique AI-driven prediction capabilities for our grocery business
Unique AI-driven prediction capabilities for our grocery business Recurring purchases Look-alike customers 58% + = of basket predicted 36
Slide 37: Our growth opportunities
Our growth opportunities €10bn +70 #1 >20% 2.5bn e-Commerce New fulfillment Retailer in Market share food Yearly visits GMV by 2026 centers by 2026 express delivery e-commerce on digital assets and quick in France and by 2026 commerce Spain by 2026 37
Slide 38: Carrefour Links addressing the fast-growing retail media market
Carrefour Links addressing the fast-growing retail media market €14bn WW retail media today €30bn WW retail media by 2024 excluding Amazon and China excluding Amazon and China 38 SOURCE: McKinsey /
Slide 39: A groundbreaking approach
A groundbreaking approach Unique 1 party data st Collaboration platform The industry of tomorrow 8bn+ transactions Target Measure 80+m customers Optimize end-to-end 39
Slide 40: Meet
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Slide 41: Adrien's customer journey
Adrien’s customer journey Adrien, a loyalty card On the Carrefour website, On Facebook, we push him When Adrien buys the ice customer, we push him a personalized a collaborative Facebook cream in store, we compute gives his consent for offer for ice cream ad the sales uplift from the digital persona
Slide 42: Customer testimonials: Unilever and Kellogg's
“The use of Carrefour Links has really helped us step change the way we work with Carrefour, enabling us to better uncover shopper insights and create demand through targeted activities. It allowed us to jointly grow our business. We recently completed a first successful data-driven media campaign i
Slide 43: Carrefour Links is uniquely positioned for impact
Carrefour Links is uniquely positioned for impact “Closed loop” Scale 80m customers >13k stores Open ecosystem 1st Party data Tech partnerships 50m cardholders 8bn transactions 43
Slide 44: Carrefour Links is ahead of the competition
Carrefour Links is ahead of the competition Carrefour Links US retailers French alliance International footprint Unified data Offer quality / completeness Open ecosystem Best-in-class Gaps vs. competition 44
Slide 45: Warren Jenson, President, LiveRamp
President, WARREN JENSON LiveRamp 45
Slide 46: LiveRamp
4LiveRamp <®
Slide 47: Benjamin Dubertret
Group Financial BENJAMIN DUBERTRET and Merchant Services Director, Carrefour 47
Slide 48: Financial services: a solid digital base on which to build
Financial services: a solid digital base on which to build Global impact of digital A powerhouse A proven ability to on our topline in Brazil develop valuable new assets 30% 66% 38% of card of customers share of digital clients acquired active on in credit on digital digital production 48
Slide 49: Digital and data will accelerate our strategy
Digital and data will accelerate our strategy € Full integration Product Optimization of into retail diversification current operations 49
Slide 50: Deep into retail: Brazil is our locomotive for retail integration
Deep into retail: Brazil is our locomotive for retail integration Digital acquisition with first Digital account and Financial services purchase in real-time on “Minhas Recompensas” integration on WhatsApp Carrefour e-commerce loyalty program assistant “Carina” 50
Slide 51: Financial services embedded in the Carrefour SuperApp
Deep into retail: financial services will be embedded in the Carrefour SuperApp “Everything under one roof” Card Credit acquisition subscription BNPL Account solutions monitoring app users Financial services Retail features winning features for the financial services 51
Slide 52: Seizing an untapped opportunity by combining retail and banking data
Deep into retail: seizing a largely untapped opportunity by combining retail and banking data Broader set of data Better lifecycle coverage Machine learning models Retail data Acquisition + Banking data Retention Loyalty and animation + Open-banking data Cross- and up-sell 52
Slide 53: Buy Now Pay Later: a major opportunity for Carrefour
Buy Now Pay Later (BNPL): a major opportunity for Carrefour $693bn $52bn Source: Deustsche Bank, JP Morgan From a card-based approach… ...to full in-app BNPL solutions for all customers Installments in B2C A broader range of product options Pre & post-purchase use cases Real-time 53
Slide 54: Deriving incremental revenue from further diversification
Deriving incremental revenue from further diversification Digital Account and Full digital insurance Micro-credit Acquiring Platform (APAG) brokerage platform 54
Slide 55: Financial services: Key ambitions 2021-2026
Financial services: Key ambitions 2021-2026 Growth in digital Growth in the Net Banking Optimize the cost of risk customers Income per customer and the cost-to-income ratio 55
Slide 56: Elodie Perthuisot
Executive Director E-commerce, ELODIE PERTHUISOT Data and Digital Transformation, Carrefour 56
Slide 57: Solid achievements on cost improvement
Solid achievements on cost improvement Granular management of €/item Efficient network choices e-Commerce ROI, % of net sales +11 pts 2019 2020 2021 57
Slide 58: Adapting preparation models to population density
Adapting preparation models to population density Population / density of a catchment area Pick-in-store Micro-fulfillment center Fulfillment center (manual or automated) (manual or automated) Relative items picked per hour 58
Slide 59: The equation of order profitability
The equation of order profitability Commercial Variable Fixed Last margin costs costs mile costs New merchant services Increased proportion of industrial models Model adapted to demand density Yield model Fresh penetration Demand forecasting improvement Volumes creation Test of new delivery options
Slide 60: Equation of last mile costs
Equation of last mile costs -15% cost of delivery with AI-powered yield model 60
Slide 61: Our operating model for profitable e-commerce growth
Our operating model for profitable e-commerce growth Contribution Improving contribution margin margin through lower variable costs Profit Network expansion Fixed costs Profit Volumes 61
Slide 62: We will constantly improve our e-commerce operating profit
We will constantly improve our e-commerce operating profit ROI by 2026 62
Slide 63: Miguel Ángel González Gisbert
MIGUEL ÁNGEL Global Chief Technology and Data Officer, GONZÁLEZ GISBERT Carrefour 63
Slide 64: We will revolutionize 67k cash desks around the world
We will revolutionize 67k cash desks around the world with an in-house, open source solution customers FOR associates business 64
Slide 65: Our app to better serve our customers in the store
Our app to BETTER SERVE our customers in the store Automated One stop shop Data-powered store processes 65
Slide 66: Flash Scan&go at full speed in Brazil
“Flash Scan&go” at full speed in Brazil... Autonomous CapEx-light The store IN my home 66
Slide 67: Flash 10-10 to prepare for the future
…and “Flash 10-10” to prepare for the future Coming soon in Paris... 67
Slide 68: Elodie Perthuisot
Executive Director E-commerce, ELODIE PERTHUISOT Data and Digital Transformation, Carrefour 68
Slide 69: Tech and AI will help us revolutionize our operations
Tech and AI will help us revolutionize our operations Sourcing Supply Chain Assortment Promotion e-Catalogue Assortment builder Promo-optimization Netflix of assortment Collaborative sourcing Auto re-appro Demand forecasting Flexible logistics 69
Slide 70: Automated assortment builder
Automated assortment builder of the assortment automatically defined 70
Slide 71: Netflix for assortment
“Netflix for assortment” Carrefour assortment Search Best sellers recommended for your store Galettes bio riz complet Jus d’orange 1L Jambon Le Supérieur sel réduit CARREFOUR BIO CARREFOUR BIO CARREFOUR EXTRA 0.65€ 2.85€ 2.11€ 6.50 € / Kilogram 2.85 € / Liter 13.19 € / Kilogram Yaourt nature Quinoa
Slide 72: We are quickly digitizing our catalogues
We are quickly digitizing our catalogues 2,000 stores with fully digitized catalogues by the end of 2022 72
Slide 73: Promotions will be targeted and personalized
Promotions will be targeted and personalized Promotion efficiency with better-targeted and personalized offers 73
Slide 74: How data increases chocolate sales
How data increases chocolate sales 5% of customers 45k customers 1:10 min buy 50% of chocolate bought a new chocolate the time it takes to get brand since September these numbers… 74
Slide 75: Digital will have a strong impact on ROI
Digital will have a strong impact on ROI through e-commerce operations but also by improving retail operations +€200m 80% 2,000 100% +3,000 e-Commerce ROI Automated Stores with fully Augmented Data experts by 2026 assortment digitized catalogs employees by 2026 by the end of 2022 with U-Care 75
Slide 76: Matthieu Malige, Chief Financial Officer
Chief Financial Officer, MATTHIEU MALIGE Carrefour 76
Slide 77: Strategy at work since 2018
Strategy at work Since 2018 Digital as a key priority €2bn+ spent since 2018 of Carrefour 2022 plan to digitalize Carrefour Backbone in place for acceleration x3 food e-commerce GMV Incremental e-commerce now since 2018 accretive to earnings 77
Slide 78: e-commerce GMV by 2026
e-commerce GMV by 2026 €10bn €3.3bn x3 2021 2026 Accelerate core e-grocery sales Seize express delivery opportunity Improving Group’s Raise ambition on non-food e-commerce growth profile Lead the way in B2B e-commerce 78
Slide 79: Digital ROI to increase by 2026
Digital ROI to increase by by 2026 Strong operating leverage in food e-commerce 200 Fast growth and high margin at Carrefour Links 200 Financial services acceleration with digital 200 e-Commerce Carrefour Links Financial Digital in retail Benefits of “digital first” approach in operations services o
Slide 80: Steady ramp-up in ROI growth
Steady ramp-up in ROI growth Incremental ROI from digital €600m 2022 2023 2024 2025 2026 Digital strategy accretive to ROI margin80
Slide 81: €3 billion digital Capex between 2022 and 2026
€3 billion digital Capex between 2022 and 2026 e-Commerce IT Network expansion Cloud strategy Robotization Digital factory Warehouses and MFCs Tech for stores Digital workplace Data Financial Services Scale our teams SuperApp Data factory Acquisition journey Data projects Home banking Process automa
Slide 82: Capital allocation driving high financial and strategic returns
Capital allocation Driving high financial and strategic returns €600m/y €400m/y +50% Digital Capex increase 2018 2021 2022 2026 Group Capex to be in the high end of the €1.5-1.7bn annual range Digital strategy positive on net free cash flow as of 2023 82
Slide 83: Digital winners will drive Retail leadership
Digital winners will drive Retail leadership Be the frontrunner on Digital in all our core markets Explore all options in a fast-changing digital world Keep constant focus on value creation for shareholders 83
Slide 84: Alexandre Bompard, Chairman and CEO
Chairman and CEO, ALEXANDRE BOMPARD Carrefour 84
Slide 85: The Carrefour way of executing our digital transformation
The “Carrefour way” of executing our digital transformation Promote a Operate a Create an open digital first culture green and responsible ecosystem to foster digital transformation innovation 85
Slide 86: Promote a digital first culture
The “Carrefour way” of executing our digital transformation Promote a digital first culture 86
Slide 87: Invest in people and change the way every associate works
Invest in people and change the way every associate works at Carrefour DigitalRetail Academy Workplace by 100% of our staff trained on digital by 2024 Facebook connecting our 320k employees 87
Slide 88: Operate a green and responsible digital transformation
The “Carrefour way” of executing our digital transformation Operate a green and responsible digital transformation 88
Slide 89: We want green and responsible e-commerce operations
We want green and responsible e-commerce operations Group-wide CO2 e-Commerce 89
Slide 90: Create an open ecosystem to foster innovation
The “Carrefour way” of executing our digital transformation Create an open ecosystem to foster innovation 90
Slide 91: We will create an open ecosystem to help us to innovate
We will create an open ecosystem to help us to innovate 91
Slide 92: Carrefour: a world-leading Digital Retail company
Carrefour A world-leading Digital Retail company 92