Slide 1: August 30, 2017 | 1
August 30, 2017 | 1
Slide 2: 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 materially f
Slide 3: H1 2017 Financial Results
H1 2017 FINANCIAL RESULTS 01 August 30, 2017 | 3
Slide 4: H1 2017 Key Highlights
H1 2017 KEY HIGHLIGHTS ▌ Solid sales growth in first half 2017: Net sales of €38.5bn, up +6.2% and +2.1% LFL Continued expansion: 352 openings in H1 Successful integration of Eroski hypermarkets in Spain and Billa supermarkets in Romania ▌ EBITDA of €1,431m and Recurring Operating Income of €621
Slide 5: Solid 6.2% growth in H1 2017
Solid 6.2% growth in H1 2017 H1 2017 SALES EVOLUTION – (in €m and %) +0.5% +6.2% +2.6% +2.8% +2.1% +0.5% +0.9% +2.8% €38.5 -0.6% bn €37.2 €37.3 €36.3 bn bn bn H1 H1 2016 2016 LFLex LFL ex petrol Store calendarStore openings H1 2017 H1 2017 / closures organic Calendar ex petrolCalendar Acquisitions/
Slide 6: Sales continue their growth trend
Sales continue their growth trend ORGANIC SALES GROWTH EVOLUTION EX PETROL - 2012 TO H1 2017 – (in %) +2.6% CAGR +3.0% 2012 – H1 2017 +3.0% +2.6% +3.9% +2.3% +1.0% 2012 2013 2014 2015 2016 H12017 H1 2017 01. H1 2017 FINANCIAL RESULTS August 30, 2017 | 6
Slide 7: Resilient gross margin from recurring operations
Resilient gross margin from recurring operations 8,821 GROSS MARGIN FROM RECURRING +1.9% 2017 2017 OPERATIONS at constant (in €m) exch. rates 2016 8,432 2017 22.9 GROSS MARGIN 2017 FROM RECURRING % OPERATIONS -34bp (as a % of net sales) 2016 23.2% 01. H1 2017 FINANCIAL RESULTS August 30, 2017 | 7
Slide 8: Solid control of operating costs
Solid control of operating costs 6,879 OPERATING +3.7% 2017 2017 COSTS at constant (in €m) 2016 6,500 exch. rates 2017 2017 17.9 OPERATING % COSTS -6bp (as a % of net sales) 2016 17.9% 01. H1 2017 FINANCIAL RESULTS August 30, 2017 | 8
Slide 9: Slight rise in asset costs reflecting investments
Slight rise in asset costs reflecting investments 1,351 ASSET +6.4% 2017 2017 COSTS at constant (in €m) 2016 1,248 exch. rates ASSET 2017 2017 3.5% COSTS +7bp (as a % of net sales) 2016 3.4% 01. H1 2017 FINANCIAL RESULTS August 30, 2017 | 9
Slide 10: France: Margin reflecting a highly competitive environment
France: Margin reflecting a highly competitive environment % (in €m) H1 2016 H1 2017 change Net sales 17,179 17,307 +0.7% LFL +1.3% ex petrol, ex calendar ROI 312 199 -36.1% ROI margin 1.8% 1.2% -70bp 01. H1 2017 FINANCIAL RESULTS August 30, 2017 | 10
Slide 11: Other European countries: Strong rise in sales and resilient margin
Other European countries: Strong rise in sales and resilient margin % change % change at current at constant (in €m) H1 2016 H1 2017 FX FX Net sales 9,428 10,010 +6.2% +6.0% LFL +2.2% ex petrol, ex calendar ROI 155 149 -3.9% -3.7% ROI margin 1.6% 1.5% -10bp 01. H1 2017 FINANCIAL RESULTS August 30, 2
Slide 12: Latin America: Strong sales growth; robust performance in Brazil
Latin America: Strong sales growth; robust performance in Brazil, tough context in Argentina % change % change at current at constant (in €m) H1 2016 H1 2017 FX FX Net sales 6,453 8,075 +25.1% +9.4% LFL +7.3% ex petrol, ex calendar ROI 273 293 +7.5% -15.5% ROI margin 4.2% 3.6% -60bp 01. H1 2017 FINA
Slide 13: Asia: Return to improved profitability
Asia: Return to improved profitability % change % change at current at constant (in €m) H1 2016 H1 2017 FX FX Net sales 3,229 3,135 -2.9% -4.3% LFL -4.3% ex petrol, ex calendar ROI -7 12 n.a. n.a. ROI margin -0.2% 0.4% +60bp 01. H1 2017 FINANCIAL RESULTS August 30, 2017 | 13
Slide 14: Adjusted Net Income, Group Share
ADJUSTED NET INCOME, GROUP SHARE H1 H1 H1 H1 (in €m) 2016 2017 (in €m) 2016 2017 EBITDA (1) 1,448 1,431 Net income from continuing operations 222 148 Recurring operating income 706 621 Minority share of net income from -65 -69 continuing operations Net income from associates and JVs -21 13 Net incom
Slide 15: H1 2017 Capex: Investments under control
H1 2017 CAPEX: Investments under control BREAKDOWN OF CAPEX BREAKDOWN OF CAPEX H1 2017 CAPEX BY NATURE BY REGION 5% 20% 22% 39% 29% €904m (ex Cargo) 29% 29% 25% 2% Remodeling Maintenance France DIA Europe Latin Expansion IT & omnichannel Asia America 01. H1 2017 FINANCIAL RESULTS August 30, 2017 | 1
Slide 16: H1 2017 Free Cash Flow
H1 2017 FREE CASH FLOW (in €m) H1 2016 H1 2017 Gross cash flow 1,088 976 Change in working capital -2,052 -2,517 Discontinued activities -11 -1 Operating cash flow -975 -1,541 Capital expenditure (ex. Cargo) -968 -904 Net capital expenditure (Cargo) -74 -85 Change in net payables to fixed asset supp
Slide 17: H1 2017 Net Debt
H1 2017 NET DEBT (in €m) H1 2016 H1 2017 Opening net debt (December 31) -4,546 -4,531 Free cash flow -2,259 -2,736 Acquisitions -136 -143 Disposals 7 11 Others -19 -63 Discontinued operations 5 1 Cash flow after acquisitions and disposals -2,363 -2,929 Dividends paid by parent company -121 - Dividen
Slide 18: Strong take-up for dividend paid in shares
STRONG TAKE-UP FOR DIVIDEND PAID IN SHARES TAKE-UP RATIO FOR DIVIDEND PAID IN SHARES – (in %) 72.1% 76.3% 71.3% Take-up ratio of 71.3% in 2016 64.6% 59.7% Cash dividend paid in H2 2017 versus in H1 in 2016 20.7% 2011 2012 2013 2014 2015 2016 Dividend (€ per share) 0.52 0.58 0.62 0.68 0.70 0.70 Suppl
Slide 19: Credit rating and debt maturity maintained
CREDIT RATING AND DEBT MATURITY MAINTAINED DEBT REDEMPTION SCHEDULE – (in €m and %) 5.25% 4.00% 3.88% On June 14th, 2017, issuance of 1.88% $500mn non-dilutive 1.75% 1.75% 1.25% 0.00% 0.75% cash-settled convertible bonds swapped in euro with a maturity of 6 years and a zero coupon 1,000 1,000 1,000
Slide 20: Outlook 2017
OUTLOOK 2017 ▌ FY 2017 Group sales expected to grow by 2% to 4% at constant exchange rates ▌ 2017 results to reflect H1 performance and an operating environment in some countries that will remain difficult in H2. ▌ FY 2017 ROI evolution vs 2016 (at current exchange rates) expected to be roughly in l
Slide 21: Q&A
Q&A August 30, 2017 | 21
Slide 22: Appendix
APPENDIX August 30, 2017 | 22
Slide 23: H1 2017 Income Statement
H1 2017 INCOME STATEMENT (in €m) H1 2016 H1 2017 Net sales 36,289 38,526 Net sales, net of loyalty program costs 36,017 38,228 Other revenue 1,275 1,354 Total revenue 37,292 39,582 Cost of good sold -28,860 -30,762 Gross margin from recurring operations 8,432 8,821 SG&A -7,006 -7,419 Recurring opera
Slide 24: Net sales and recurring operating income per region
Net sales and recurring operating income per region NET SALES RECURRING OPERATING INCOME Variation at Variation at Variation at Variation at constant current exch. constant current exch. (in €m) H1 2016 H1 2017 exch. rates rates H1 2016 H1 2017 exch. rates rates France 17,179 17,307 +0.7% +0.7% 312
Slide 25: Adjusted Net Income, Groupe Share
ADJUSTED NET INCOME, GROUPE SHARE (in €m) H1 2016 H1 2017 Net income from continuing operations, Group share 158 79 Restatement for non-recurring income and expenses (before tax) 114 150 Restatement for exceptional items in net financial expenses 7 17 Tax impact(1) -48 -84 Restatement on share of in
Slide 26: Earnings per Share
EARNINGS PER SHARE (€ per share) H1 2016 H1 2017 Net income from continuing operations 0.22 0.10 Net income from discontinued operations -0.04 -0.00 Net income, Group share 0.18 0.10 Adjusted net income, Group share 0.32 0.21 Weighted average number of shares pre-dilution (in millions) (1) 731.7 748
Slide 27: Stores under banners at end H1 2017
STORES UNDER BANNERS1 AT END H1 2017 (#) Hypermarkets Supermarkets Convenience Cash & Carry Total France 247 1,059 4,237 143 5,686 Spain 200 131 593 924 Italy 55 414 583 13 1,065 Belgium 45 445 290 780 Poland 86 149 662 897 Romania 32 213 54 299 Others 40 401 196 637 Other European countries 458 1,7
Slide 28: H1 2017 Gross Sales
H1 2017 GROSS SALES Change at Change at Change at LFL Organic growth Gross sales current exch. constant exch. constant exch. ex. petrol ex. petrol (in €m) rates inc. petrol rates inc. petrol rates ex. petrol LFL inc. petrol ex. calendar ex. calendar France 19,348 +0.8% +0.8% +2.1% +1.3% +0.1% Hyperm
Slide 29: Q2 2017 Gross Sales
Q2 2017 GROSS SALES Change at Change at Change at LFL Organic growth Gross sales current exch. constant exch. constant exch. ex. petrol ex. petrol (in €m) rates inc. petrol rates inc. petrol rates ex. petrol LFL inc. petrol ex. calendar ex. calendar France 9,942 +0.8% +0.8% +2.0% +1.9% +0.7% Hyperma