Slide 1: Presentation to investors, June 2005
June 2005 Presentation to investors / June 2005 Conferences 1
Slide 2: 2005, a year of transition
2005, a year of transition We are working hard to lay the future foundations for profitable and sustainable growth in the years ahead 9 Our objectives • Deliver to the customer the best value, the best products and the best services • Generate sustainable growth in all the markets and across all for
Slide 3: Progress in France so far
Progress in France so far We have reinforced our efforts to improve our price image in France, particularly in hypermarkets 9 These efforts have already produced some results as seen in Q1 sales figures : • LFL sales in French hypermarkets ex petrol up 0.5%, despite a negative calendar effect of 1.6
Slide 4: Pricing image
Pricing image In dry grocery, we have achieved a good level of price competitiveness 9 We have continued to invest in our range of own label food products 9 However, we still have work to do to ensure that we are equally competitive in non-food and fresh food Presentation to investors / June 2005 Co
Slide 5: Assortment range
Assortment range We are developing the assortment range for our customers 9 We are adding lines in selected categories to give customers more choice 9 We are reinforcing our services in store: • Financial services • Carrefour Voyages • Carrefour Spectacles Presentation to investors / June 2005 Confe
Slide 6: Recovering market share
Recovering market share We are recovering market share in hypermarkets and across the business in France 9 These market share gains have been driven by : • A positive number of customer transactions in our hypermarkets • The success of our multi format strategy • And the addition of new m² across al
Slide 7: Our position on the reform of the Loi Galland
Our position on the reform of the Loi Galland Latest proposals risk making the current situation less transparent and much more complex 9 We are now working closely with like minded vendors 9 Everyone – and most importantly the customer – would benefit from the situation where we are free to work wi
Slide 8: Simplifying our organisation and teams
Simplifying our organisation and teams In order to execute our key priorities, we need a more simple and flexible management structure 9 Our management board is now much more operational in nature 9 There is no more than one reporting between any country head and the Chief Executive. 9 We have chang
Slide 9: Building further our international engines for growth
Building further our international engines for growth In 2004, we made progress improving profitability and ROCE outside France 9 Sales up 8.3% on constant exchange rates 9 EBIT up 14.6% in 2004 9 Roce 11.1% versus 8.3% in 2003 While this is good, we must do much better Presentation to investors / J
Slide 10: Upgrading our portfolio: divestments
Upgrading our portfolio: divestments We are divesting activities where we have little chance of achieving an appropriate return on capital employed 9 No taboos : every single business unit must create value 9 We continue to analyse our asset portfolio in a regular way Presentation to investors / Jun
Slide 11: Upgrading our portfolio: acquisitions
Upgrading our portfolio: acquisitions Upgrading our portfolio also means investing additional capital in markets with strong potential 9 We require that all new acquisitions strengthen existing market positions and are ROCE enhancing 9 We reinforced our partnership with Hyparlo Group in France and w
Slide 12: No more stop and go
No more stop and go Growing market share and driving sales is mainly about organic growth 9 The stop & go policies of the past are over 9 We must open sufficient new square metres in each market for us to reinforce our market share Presentation to investors / June 2005 Conferences 12
Slide 13: Focus on new m2
Focus on new m2 Adding new square metres is vital and attractive opportunity for us to grow sales and gain market share 9 We are on track to deliver 1 million new sqm in 2005 9 Over the next three years, our goal is to achieve sustainable and profitable sales growth. 9 We will accelerate the opening
Slide 14: Conclusion: anticipating customers' desires
Conclusion We must anticipate our customers’ desires better and faster In the stores • We will everywhere look to strengthen price image to grow like for likes and win market share • We will offer more choice by selectively increasing the assortment range and providing more service in store, and • W
Slide 15: Conclusion: group level priorities
Conclusion We must anticipate our customers’ desires better and faster At group level, • We will upgrade the quality of our asset portfolio on an ongoing basis. There will be no taboos: every business unit must contribute to the results of the group • We will leverage our multi format strategy to ac
Slide 16: Conclusion: None of this will be easy
Conclusion None of this will be easy 9 We are seeing deflation and weak volumes across most of Europe 9 The current difficult trading conditions impact everyone in the industry and no format is immune 9 In this tough environment our goal must be to consistently outperform the competition and win mar