Slide 1: Q2 2008 sales - 9 July 2008
f) Q2 2008 sales - 9 suly 2008
Slide 2: Strong performance in a challenging environment
Introduction Strong performance in a challenging environment Strong sales growth in H1 and Q2 At least 5% growth in Activity Contribution in H1 Acceleration of action plan in H2 2
Slide 3: Key highlights
Introduction Key highlights Group sales +8.6% at constant exchange rates in H1, +6.7% in Q2 Solid numbers from smaller formats in France Very good performance in Spain (+8.3%) Strong performance in growth markets (+21.8%) Underperformance of French hypermarkets (-2.4% lfl) 3
Slide 4: A changing consumer environment
Introduction A changing consumer environment Unprecedented volatility in our markets especially mature Europe Changing consumption patterns: people are consuming less in non-food and differently in food Fall in volumes of national brands and rise of our own label brands 4
Slide 5: Opportunities in the current environment
Introduction Opportunities in the current environment Our multi format strategy is paying off Growing customer demand for Carrefour own label Our growth markets continue to perform well Assets to leverage: brands, formats, market share, property 5
Slide 6: The detailed picture
© The detailed picture
Slide 7: Breakdown of sales by region: Q2 2008
H1 sales Breakdown of sales by region Strong sales growth of + 6.7% in Q2 08 on constant exchange rates Sales inc. Like for Expansion Total Currency Total VAT like const. (%) exch. (%) (%) (m€) (%) rates(%) France 10 455 0.8 -0.3 0.5 0.0 0.5 Europe 8 869 1.0 6.4 7.4 0.0 7.4 Latin 2 956 13.2 15.8 29.
Slide 8: Breakdown of sales by region: H1 2008
H1 sales Breakdown of sales by region Solid sales growth of + 8.6% in H1 08 on constant exchange rates Sales inc. Like for Expansion Total Currency Total VAT like const. (%) exch. (%) (%) (m€) (%) rates(%) France 20 562 1.7 -0.2 1.5 0.0 1.5 Europe 17 440 1.6 6.3 7.9 0.2 8.1 Latin 5 793 14.2 25.7 39.
Slide 9: Share of growth markets has increased
H1 sales Share of growth markets has increased Breakdown of sales H1 2008 vs. H1 2007 25% 29% 43% 46% 29% 28% France Mature Europe Growth markets 9
Slide 10: Our action plan
® Our action plan
Slide 11: Defining our priorities
Action plans Defining our priorities Consistent strategy adapted to the environment Acceleration of operating plans More discriminating in our priorities to deliver our targets Restoring shareholder value 11
Slide 12: Our action plan
Action plans Our action plan Stronger commercial plan and promotional activity in French hypermarkets Faster roll out of our new Carrefour Market brand Acceleration of new m2 in our growth markets Greater capex screening and a reduction in costs More proactive leverage of our property skills 12
Slide 13: Our action plan: French hypermarkets
Action plans Our action plan: French hypermarkets In the current environment, clients are looking for more promotions Stronger commercial plan and promotional activity in French hypermarkets in order to: Regain customers in tertiary catchment area Leverage our commercial tools (own-brand, pricing, p
Slide 14: Our action plan: brand convergence
Action plans Our action plan: brand convergence Faster roll out of our new Carrefour Market brand About 150 conversions between September and December Strong performance from second wave of pilots €200m benefit to Activity Contribution is conservative, scope for upside Roll out of Carrefour own bran
Slide 15: Our action plan: growth markets
Action plans Our action plan: growth markets Accelerate openings in growth markets Brazil: 12 new Atacadao stores this year, 20 sites ready for development in 2009 and 2010 Taiwan: 11 new hypermarkets Colombia: 16 new hypermarkets China: 20 new hypermarkets 15
Slide 16: Our action plan: capex and costs
Action plans Our action plan: capex and costs Greater screening of capex and a reduction in costs Freeze in enlargements and big remodellings Reallocation of capital to growth formats and markets Reassessment of every cost not directly linked to additional sales or expansion 16
Slide 17: Our action plan: property
Action plans Our action plan: property More proactive leverage of our property skills Carrefour Property: 4.1 million m² of which 1.5 million in French hypermarkets Systematically analyse the opportunities to reallocate part of our sales area in our hypermarkets Seize all opportunities to open small
Slide 18: Conclusion
® Conclusion
Slide 19: Conclusion: Our objectives
Conclusion Conclusion Our objectives Sales growth in 2008 of 7% at constant exchange rates Activity contribution growth at around the same rate as sales growth. Operational free cash flow of 1.5 billion euros Total focus on delivering these objectives, even in a tough environment, and enhancing shar