Carrefour Sa · EURONEXT:CA
Carrefour Sa — Investor Presentation (June 2007)
27 slides from Carrefour Sa's investor presentation, June 2007
Slide 1: Carrefour presentation June 2007
Carrefour presentation June 2007
Slide 2: Agenda
Agenda Our convictions 2006: our growth model is taking shape 2007- 2008: consistent strategy, faster execution Conclusion 2
Slide 3: Our convictions
Our convictions al 94 groupecarrefour
Slide 4: The main elements of our strategy have already been defined
The main elements of our strategy have already been defined We are consistent in our commitment to the strategy we defined in 2005 – 2006 This strategy is focused on customers and growth 4
Slide 5: Customers
Customers Choice (assortment) and services are key points of differentiation Low prices and strong promotions are non negotiable and basic customer requirements 5
Slide 6: Customers: tough markets and changing needs
Customers Markets are tough. Almost everywhere the food industry is characterised by low growth, deflation and competitiveness To win, we must focus on the changing needs of our customers Price leadership is non-negotiable but this is only our “ticket to play the game”. We need to offer our cu
Slide 7: Growth: developing emerging markets
Growth Developing "emerging" markets with high potential Increasing our scope of action: new countries Actively participating in local consolidation 7
Slide 8: Growth: adding new m² as a source of growth
Growth Adding new m² is a necessary source of growth. If we have a commercial model that works, we must roll it out as quickly as possible Regional and local consolidation is accelerating. This gives us additional opportunities for growth A strong brand is key 8
Slide 9: 2006: our growth model is taking shape
2006: our growth model is taking shape
Slide 10: We achieved our main objectives in 2006
We achieved our main objectives in 2006 2006 targets 2006 results Sales growth on constant exchange rates 2006 > 2005 +6.4% vs +4.3% Activity Contribution > 0% +3.4% Net debt Down Reduction of €481m France food market share* Gain +0.5% New store openings 1,000 968 New hypermarkets 100 103 New m² 1.5
Slide 11: Acceleration of sales growth on constant exchange rates
Acceleration of sales growth on constant exchange rates 8% + 6.4% 6% + 4.3% + 4.0% 4% 2% 0% 2004 2005 2006 11
Slide 12: We doubled the number of hypermarkets openings compared to 2001-2004
We doubled the number of hypermarkets openings compared to 2001 - 2004 110 103 90 x2 82 70 52 50 44 44 38 30 2001 2002 2003 2004 2005 2006 12
Slide 13: Food market share evolution Carrefour Group in France
Overall, +1.1% market share gains in France in the period 2005-2006 Food market share evolution Carrefour Group in France 0,8% 0.6% 0,6% 0.5% 0,5% 0,4% 0.1% 0,1% 0,0% -0,4% --0,6% 0.6% -0,8% 2003 2004 2005 2006 Source TNS WorldPanel 13
Slide 14: Our sales driven model is beginning to work
Our sales driven model is beginning to work 8% 6% 4% 2% 0% -2% Net sales EBIT * -4% EBITDA * -6% 2002 / 2001 2003 / 2002 2004 / 2003 2005 / 2004 2006 / 2005 *EBIT and EBITDA are under IFRS from 2004 14
Slide 15: 2007-2008: consistent strategy, faster execution
2007 - 2008 : consistent strategy, faster execution
Slide 16: Our objectives
Our objectives We must consistently create value-added across all our business units to improve shareholder returns To reach this goal, we need to : Grow sales faster and manage costs better Allocate capital rigorously Optimise the financing of our asset base 16
Slide 17: Grow sales faster and manage costs better
Grow sales faster and manage costs better Sales growth Market share (comparable stores, development) Competitiveness Purchasing conditions investment Amortization of fixed costs EBITDA 17
Slide 18: Allocate capital rigorously
Allocate capital rigorously Investment ROCE Managing Profitable growth working capital 18
Slide 19: Three key priorities
Three key priorities Improve the commercial model Accelerate growth in new m2 Optimise the financing of our asset base 19
Slide 20: Improving the commercial model
Improving the commercial model Local price leadership Roll out of dry grocery model Roll out of new non-food model Development of a multi-format, single-brand, strategy 20
Slide 21: Three key priorities
Three key priorities Improve the commercial model Accelerate growth in new m2 Optimise the financing of our asset base 21
Slide 22: Accelerating growth in new m2
Accelerating growth in new m2 Acceleration of expansion in our growth markets Russia and India: the new frontiers Pragmatic approach to tactical acquisitions 22
Slide 23: Three key priorities
Three key priorities Improve the commercial model Accelerate growth in new m2 Optimise the financing of our asset base 23
Slide 24: Optimising the financing of our asset base
Optimising the financing of our asset base Rigorous capital allocation Better management of working capital Leverage of property assets 24
Slide 25: Conclusion
Conclusion groupecarrefour
Slide 26: Conclusion
Conclusion We will not betray our pricing strategy We will improve our non-food performance We will manage our costs better We will allocate capital more rigorously and optimise our cash flows Execution and speed 26
Slide 27: Q&A
Q&A al 94 groupecarrefour