Carrefour Sa · EURONEXT:CA
Carrefour Sa — FY 2023 Earnings Presentation
38 slides from Carrefour Sa's earnings presentation, Feb 20, 2024
Slide 1: FY 2023 Results, Q4 2023 Sales
FY 2023 Results Q4 2023 Sales February 20th, 2024
Slide 2: Strategic overview
Strategic ) . overview
Slide 3: 2023: Several strategic advances
2023: Several strategic advances Private labels E-commerce Expansion +92 Atacadão stores +3 pts to 36% of food sales +26% in GMV +653 convenience stores Grupo BIG integration M&A Retail Media Integration progressing fast Cora & Match acquisition R$1.6bn annualized cost Joint Venture with Publicis in
Slide 4: Rapid concentration in the French food retail market
Rapid concentration in the French food retail market Combined market share of top 3 French food retailers Combined market share of top 3 food retailers Netherlands 69% Netherlands Germany 65% Germany Belgium 65% Belgium France 63% France UK 48% UK Spain 48% Spain USA 38% USA 63% 59% Concentration ac
Slide 5: 2023 key financials confirm the strength of our model
2023 key financials confirm the strength of our model Recurring Net Sales Operating Income Cost savings Adj. EPS €83.3bn €2,264m €1,060m +12% €1bn target +10.4% LFL -4.7% at €1.83 confirmed for FY24 Net free Net debt Dividend Share buyback cash-flow end-December 2023 Reduced by €0.87/share €700m €1,
Slide 6: CSR & Food Transition Index: 110% achievement rate
CSR & Food Transition Index: 110% achievement rate Climate Food transition 44% of Top 100 suppliers €514m in sales of have a 1.5°C trajectory plant-based alternatives (+17 pts vs end-2022) (2026 target raised to €650m vs €500m initially) -38% reduction in store 306 suppliers committed to the greenho
Slide 7: Financial results
. Financial results
Slide 8: Solid growth in sales in 2023
Solid growth in sales in 2023 +10.4% LFL in 2023 › France: Growth driven by food (+6.0% LFL); Strong performance of e-commerce (GMV up +16%) FY 2023 Hypermarkets: +4.1% › Spain: Positive momentum across all formats LFL Q4 FY Supermarkets: +4.7% Group +10.2% +10.4% Convenience/other › Italy: Good dyn
Slide 9: Rapid slowdown in food inflation in Europe
Rapid slowdown in food inflation in Europe YoY food inflation in Europe 25% 20% 15% 7.3% 7.3% 10% 7.1% 6.0% 5% 5.9% 5.8% 0% MoM food inflation in France 1.7% 1.7% 1.7% 1.7% 1.8% 1.4% 0.9% 1.0% 0.8% 1.0% 1.1% 0.6% 0.5% 0.5% 0.6% 0.4% 0.3% 0.3% 0.3% 0.1% 0.3% 0.0% 0.0% -1% (0.3)% Jan22 Feb22 Mar22 Apr
Slide 10: 2023 ROI of €2,264m; Stable ROI margin in H2
2023 ROI of €2,264m; Stable ROI margin in H2 in €m 2022 2023 Variation o/w H1 o/w H2 Net Sales 81,385 83,270 +2.3% Gross margin 16,313 16,630 +1.9% Evolution of the integrated/franchise As a % of net sales 20.0% 20.0% -7bps -4bps -9bps store mix SG&A (11,958) (12,335) +3.2% +10.2% -3.4% Strong cost
Slide 11: France: Strong growth in ROI and operating margin
France: Strong growth in ROI and operating margin 2023 ROI up +18.5% and margin up +37bps 2023 Key drivers › Operational excellence and cost discipline › Increase in private label penetration 2,6% › Ramp-up of retail media 2,1% 2,2% €988m › Improvement in e-commerce profitability 1,8% €834m 1,6% €75
Slide 12: Europe: Contrasting situations, strong growth in Spain
Europe: EuropeContrasting situations, strong growth in Spain Stable 2023 ROI 2023 Key drivers SPAIN › Strong +14% ROI growth and margin expansion despite challenging environment in financial services ITALY -0.4% › Ongoing transformation bearing fruit in an adverse market environment BELGIUM › Strong
Slide 13: Brazil: Penalized by Grupo BIG integration
Brazil: Europe Penalized by Grupo BIG integration ROI, in €m -27% 914 (65) H1 414 (15) (85) (15) 668 (25) (40) 251 H2 500 c.(80) c.(110) c.(55) 417 FY 2022 Grupo BIG Performance of Legacy business FY 2023 one-off costs BIG stores (excl. Grupo BIG) Grupo BIG one-off costs Performance of BIG stores Le
Slide 14: Argentina: Another strong year in an unstable environment
Argentina: Europe Another strong year in an unstable environment 2023 ROI up +4.1% 2023 Key drivers › Strong operating performance with growth in +4.1% ROI and ROI margin (+138 bps), driven by: › Volume growth and market share gains › Strong cost discipline €96m › -€92m ROI impact of IAS 29 accounti
Slide 15: Solid retail performance offset by one-offs and financial services
Solid retail performance offset by one-offs and financial services -€113m c.+€130m c.€(105)m Solid performance of retail activities • Financial margin pressured by higher c.€(80)m interest rates Store conversion c.€(60)m €2,377m • Increase in costs (mostly in cost of risk Impact of H1) and cost of a
Slide 16: Adjusted EPS up +12% in 2023
Adjusted EPS up +12% in 2023 in €m 2022 2023 Recurring operating income 2,377 2,264 Net income from associates and JVs 50 44 Restructuring costs related to reorganization Non-recurring income and expenses, net 36 (558) plans and asset impairment in Brazil EBIT 2,463 1,749 Reduction in net debt and c
Slide 17: 4th consecutive year of double-digit EPS growth
4th consecutive year of double-digit EPS growth Adjusted EPS (in €) Adjusted EPS +12% in 2023 +79% 1.83 1.63 +79% over 6 years 1.43 1.26 10% CAGR between 1.07 1.09 2017 and 2023 1.02 2017 2018 2019 2020 2021(1) 2022 2023 (1) Carrefour Taiwan reclassified as held-for-sale as per IFRS 5 FY 2023 RESULT
Slide 18: A strong cash-generating model
A strong cash-generating model +€360m +€94m +€363m Including c.€230m sale and leaseback transaction in Brazil in H1 €1,622m -€98m Strong working capital contribution: €1,262m • Efficient management of inventories and receivables • Favorable year-end activity in Argentina 2022 NFCF Impact of disconti
Slide 19: Net Free Cash Flow growth
Net Free Cash Flow growth EBITDA to Net FCF in €m 2022 2023 Variation EBITDA 4,613 4,559 (54) Including tax credits used in Income tax paid (449) (343) 106 Brazil in 2023 Financial result (operations-related)(1) 13 56 43 Cash impact of restructuring items and others (424) (328) 95 Gross cash flow (e
Slide 20: Well on track to achieve €1.7bn Net FCF target in 2026
Well on track to achieve €1.7bn Net FCF target in 2026 Net Free Cash Flow (in €m) Objective: Net FCF to reach >€1.7bn in 2026 1,622 >1,700 1,262 1,227 1,056 2024 NFCF expected closer to initial 2022-2026 growth trajectory (1) 2020 2021 2022 2023 2024 2025 2026 Theoretical NFCF on the assumption of a
Slide 21: Strong reduction in net debt
Strong reduction in net debt with sale of Carrefour Taiwan and strong NFCF -€818m in €m Mainly 312 Taiwan proceeds 802 As reminder Impact of ARS devaluation on 481 73 opening balance sheet position (863) 3,690 3,378 (1,622) 405 ordinary 2,633 76 to minorities 2,560 Dec. 31, Dec. 31, IAS 29 Dec.31, N
Slide 22: An increasingly shareholder-friendly policy
An increasingly shareholder-friendly policy +8% increase in shareholder return, at €1.3bn, with: €1,300m €1,205m 11.9% yield(4) €1,130m New share buyback for €1,083m 8.6% yield(2) 9.4% yield(3) 8.1% yield(2) €700m €700m €800m to be completed before year-end €750m SBB SBB €700m SBB SBB +55% in ordina
Slide 23: Appendix
a © APPENDIX
Slide 24: Carrefour 2026 objectives
Carrefour 2026 objectives OPERATIONAL OBJECTIVES 2022 2023 2026 Private labels 33% of food sales 36% of food sales 40% of food sales Convenience store openings n.a. +653 vs. 2022 +2,400 vs. 2022 Atacadão store openings n.a. +92 vs. 2022 >+200 vs. 2022 -27.5% in 2026 vs. 2019 -14%(1) -21%(1) at Group
Slide 25: Q4 2023 gross sales
Q4 2023 gross sales Change at Change at LFL Organic growth Gross sales current constant ex. petrol ex. petrol (in €m) exch. rates inc. exch. rates inc. ex. calendar ex. calendar petrol petrol France 10,974 +1.0% 0.0% -4.5% -4.5% Hypermarkets 5,529 +0.3% -0.9% -4.9% -4.9% Supermarkets 3,539 +0.6% -0.
Slide 26: Q4 2023 technical effects
Q4 2023 technical effects Calendar Petrol Forex France -0.8% -3.6% - Hypermarkets -0.5% -3.4% - Supermarkets -1.3% -4.0% - Others, inc. convenience -1.1% -3.6% - Other European countries -0.7% -1.2% +0.5% Spain -0.9% -2.1% - Italy -0.5% -0.5% - Belgium -0.3% - - Romania +0.2% -0.0% -1.1% Poland -1.3
Slide 27: FY 2023 gross sales
FY 2023 gross sales Change at Change at LFL Organic growth Gross sales current constant ex. petrol ex. petrol (in €m) exch. rates inc. exch. rates inc. ex. calendar ex. calendar petrol petrol France 42,518 +4.7% +3.8% +1.2% +1.2% Hypermarkets 20,702 +4.1% +2.7% -0.1% -0.1% Supermarkets 14,097 +4.7%
Slide 28: FY 2023 technical effects
FY 2023 technical effects Calendar Petrol Forex France -0.1% -2.5% - Hypermarkets -0.0% -2.8% - Supermarkets -0.1% -2.3% - Others, inc. convenience -0.2% -2.2% - Other European countries -0.2% -1.6% +0.3% Spain -0.3% -2.8% - Italy -0.0% -0.8% - Belgium -0.1% - - Romania +0.1% -0.0% -0.4% Poland -0.3
Slide 29: FX evolution
FX evolution 2023 CURRENCY Evolution(1) Brazilian Real +0.5% Argentine Peso -52.7% Romanian Leu +3.2% Polish Zloty -0.3% (1) Average foreign exchange rate FY 2023 RESULTS February 20, 2024 29
Slide 30: Net sales and recurring operating income by region
Net sales and recurring operating income by region NET SALES RECURRING OPERATING INCOME Variation Variation Variation Variation 2022 2023 at constant at current 2022 2023 at constant at current exch. rates exch. rates exch. rates exch. rates in €m France 37,706 38,220 +1.4% +1.4% 834 988 +18.5% +18.
Slide 31: Non-recurring expenses
Non-recurring expenses in €m 2022 2023 Restructuring costs (13) (352) Impairment and asset write-offs (147) (297) Results from asset disposals 212 66 Other non-current items (16) 25 Non-recurring income and expenses, net 36 (558) FY 2023 RESULTS February 20, 2024 31
Slide 32: 2023 income statement
2023 income statement in €m 2022 2023 Net Sales 81,385 83,270 Net sales, net of loyalty program costs 80,543 82,276 Other revenue 2,546 2,632 Total revenue 83,089 84,908 Cost of goods sold (66,776) (68,278) Gross margin 16,313 16,630 SG&A (11,958) (12,335) Recurring operating income before D&A (EBIT
Slide 33: Tax expense
Tax expense in €m 2022 2023 Income before taxes 1,973 1,339 Non-recurring income and expenses, net 36 (558) Income before taxes (excl. non-recurring income and expense and 1,937 1,897 net income from associates) Full-year normative tax rate(1) 28.8% 27.1% Evolution of the geographic mix Normative ta
Slide 34: Earnings per share
Earnings per share (€ per share) 2022 2023 Net income from continuing operations, Group share 1.85 1.30 Net income from discontinued operations, Group share (0.03) 1.02 Net income, Group share 1.82 2.32 Adjusted net income, Group share 1.63 1.83 Weighted average number of shares (in millions) 741.4
Slide 35: Real estate asset rotation
Real estate asset rotation (€m) 2022 2023 Variation Real estate Capex 383 333 -50 Real estate asset disposal 262 395 +133 Net real estate investment/(disposal) 121 (62) -183 FY 2023 RESULTS February 20, 2024 35
Slide 36: Enhanced liquidity and solid balance sheet
Enhanced liquidity and solid balance sheet › Credit Rating as of December 31, Debt redemption schedule (in €m) – As of December 31, 2023 2023: BBB stable outlook by S&P Baa1 stable outlook by Moody’s › On December 31, 2023, average bond 1,780 debt maturity is at 3.8 years 1,674 280 › May 2023: Susta
Slide 37: Stores under banners at end-2023
Stores under banners at end-2023 Cash & Soft (#) Hypermarkets Supermarkets Convenience Sam’s Club Total Carry discount France 253 1,037 4,561 151 33 - 6,035 Other European countries 469 2,139 3,445 12 97 - 6,162 Spain 204 153 1,054 - 63 - 1,474 Italy 42 418 1,018 12 - - 1,490 Belgium 40 349 318 - -
Slide 38: 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