Slide 1: Q4 2020 Sales and FY 2020 Results
Q4 2020 SALES FY 2020 RESULTS February 18, 2021
Slide 2: Agenda
STRONG CASH GENERATION 01 REFLECTING SOLID & PROFITABLE GROWTH 02 FOCUS ON FRANCE 03 A COMMITTED COMPANY
Slide 3: Strong cash generation reflecting solid and profitable growth
01 STRONG CASH GENERATION REFLECTING SOLID & PROFITABLE GROWTH
Slide 4: Highlights: strong cash flow generation reflecting solid and profitable growth
HIGHLIGHTS Strong cash flow generation reflecting solid and profitable growth 1 SOLID GROWTH 2 STEADY IMPROVEMENT 3 STRONG CASH MOMENTUM IN PROFITABILITY GENERATION › Record commercial performance › 2020 ROI increases again: › Strong increase in net in 2020 +16.4% at constant FX FCF at €1.1bn in 202
Slide 5: Sequential acceleration in LFL
1 SOLID GROWTH MOMENTUM SEQUENTIAL ACCELERATION IN LFL Reported Group LFL +7.8% +8.6% +8.7% +8.4% +7.8% +3.1% +7.0% +6.3% +1.4% +3.5% +2.7% +2.0% +0.7% H1 H2 H1 H2 H1 H2 Q1 Q2 Q3 Q4 2018 2019 2020 2020 2020 RESULTS 01 02 03 February 18, 2021 5
Slide 6: Strong increase in customer satisfaction
1 SOLID GROWTH MOMENTUM STRONG INCREASE IN CUSTOMER SATISFACTION, AN ASSET FOR FUTURE GROWTH GROUP NPS® FRANCE NPS® France Hypermarkets First Covid-19 First Covid-19 wave wave +16 points +12 points in total in 2020 in 2020 +17 points in hypers in 2020 Dec. Jan. Feb. March April May June July Aug. Se
Slide 7: Strategic initiatives aligned with customer trends (1/2)
1 SOLID GROWTH MOMENTUM STRATEGIC INITIATIVES WELL ALIGNED WITH CUSTOMER TRENDS (1/2) Food e-commerce GMV (per year, €bn) Food e-commerce GMV growth over +70% yoy 4.2 x3 +50% +71% +237% 2.3 1.3 0.8 1.0 in France in Spain in Brazil +1.3 million 2,225 Drive worldwide 2017 2018 2019 2020 2022 new custo
Slide 8: Strategic initiatives aligned with customer trends (2/2)
1 SOLID GROWTH MOMENTUM STRATEGIC INITIATIVES WELL ALIGNED WITH CUSTOMER TRENDS (2/2) Carrefour-branded products penetration (per year, % of sales) Increase of 2 points yoy of +2 pts +2 pts 33% Carrefour-branded products 29% penetration at 29% of sales 27% 25% 2018 2019 2020 2022 Development of grow
Slide 9: Targeted M&A strategy progressing well
1 SOLID GROWTH MOMENTUM TARGETED M&A STRATEGY PROGRESSING WELL 2020 acquisitions for a total EV of c.€760m should contribute more than 2% of additional sales on a full-year basis COUNTRY ANNOUNCEMENT STATUS COMPLETION DATE ACQUISITIONS Potager City France January 2020 Completed January 2020 DejBox F
Slide 10: First €3.0bn cost savings plan delivered, new €2.4bn plan
2 STEADY IMPROVEMENT IN PROFITABILITY FIRST €3.0bn cost savings plan delivered NEW €2.4bn cost savings plan launched Cost-reduction plan Levers to complement existing cost savings momentum COGS Distribution costs › Joint purchasing across Carrefour › Purchasing protocols further +€2.4bn geographies
Slide 11: Another year of profitable growth
2 STEADY IMPROVEMENT IN PROFITABILITY ANOTHER YEAR OF PROFITABLE GROWTH Published Group ROI (in €m) Evolution in Group ROI (at previous year FX) +16.4% 2,173 +€343m 2,088 2,006 3.1% +7.4% 2.9% 1,905 +4.6% +€145m 2.5% +€93m 2.5% 2017 2018 2019 2020 2018 2019 2020 ROI ROI margin Note: 2020 ROI include
Slide 12: 2020 recurring operating income up 16.4% at constant FX
2 STEADY IMPROVEMENT IN PROFITABILITY 2020 recurring operating income (ROI) up +16.4% at constant FX +€343m improvement at constant FX €2,442m c.€(200)m c.€(80)m €2,173m €2,099m Increase in the €(269)m c.€630m cost of risk and Impact of sanitary crisis on adjacent decrease in net Good performance of
Slide 13: France: strongest growth in almost 20 years
FRANCE Strongest growth in almost 20 years 2020 France LFL of +3.6% France ROI up +13.2% › Growth in all segments › Hypermarkets: Focus on operational excellence and customer satisfaction bearing fruit €629m €555m c.€(90)m › Supermarkets and convenience: Confirmation of solid momentum c.€160m › Posi
Slide 14: Europe: accelerating momentum
EUROPE Accelerating momentum 2020 Europe LFL of +3.5% Europe ROI up +6.4% at constant FX SPAIN Strong growth of NPS® and improvement in price perception underscore continued €701m €698m enhanced attractiveness for consumers €659m c.€(110)m €(3)m BELGIUM c.€150m Return to market share gains in 2020 a
Slide 15: Latin America: another exceptional performance
LATIN AMERICA Another exceptional performance 2020 Latin America LFL of +23.0% Brazil ROI up +22.0% at constant FX BRAZIL €1,020m Carrefour’s ecosystem confirms its attractiveness c.€(90)m › Carrefour Retail: Three consecutive quarters of double-digit growth. Strong market share gains €836m €764m ›
Slide 16: Taiwan: strengthened position
TAIWAN Strengthened position 2020 sales up +3.7% at constant FX Taiwan ROI up +9.8% at constant FX › Finalization of the acquisition of 224 Wellcome convenience stores, to be converted to the Carrefour banner in H1 2021 €91m €94m €83m €3m › Increase in ROI reflected the good momentum of expansion an
Slide 17: Increase of €154m in adjusted net income, Group share
2 STEADY IMPROVEMENT IN PROFITABILITY Increase of +€154m in adjusted net income, Group share 2019 in €m 2020 restated Recurring operating income 2,099 2,173 Net income from associates and JV's 2 (13) Significant reduction in non-recurring Non-recurring income and expenses, net (1,030) (474) expenses
Slide 18: 2020 net FCF up €732m vs 2019
3 STRONG CASH GENERATION 2020 net FCF up +€732m vs 2019 Net Free Cash Flow (in €m) Strong focus on FCF since the beginning of the transformation plan 1,056 >1 000 New Net FCF target: 363 324 >€1bn from 2021 onwards 177 142 2016 2017 2018 2019 2020 2021 onwards Net FCF Exceptional items 2020 RESULTS
Slide 19: Efficient capex policy and decrease in inventory
3 STRONG CASH GENERATION EFFICIENT CAPEX POLICY AND DECREASE IN INVENTORY Efficient capex policy (per year, €bn) Decrease in inventory (in days) 1.7 1.6 [1.5-1.7] 39 1.2 37 35 2018 2019 2020 Normative 2018 2019 2020 Note: 2018 excluding China (IFRS 5) 2020 RESULTS 01 02 03 February 18, 2021 19
Slide 20: EBITDA to FCF
3 STRONG CASH GENERATION EBITDA to FCF 2019 in €m 2020 Variation restated Lower cash-out from restructuring (€341m EBITDA 4,417 4,465 49 vs €580m in 2020). €128m cash-out related Income tax paid (499) (477) 22 to exceptional bonuses and similar benefits in H1 2020 Financial result (excl. cost of deb
Slide 21: Decrease in net debt at constant FX
3 STRONG CASH GENERATION Decrease in net debt at constant FX (in €m) €288m net debt reduction at constant FX Total Net FCF €1,056m 41 (289) (640) (169) (2,615) (2,327) (2,616) 1,594 (538) December 31, Net FCF (excl. Exceptional Dividends M&A Others December 31, Forex December 31, 2019 Net Debt excep
Slide 22: Target of net FCF above €1bn/year from 2021
3 STRONG CASH GENERATION Target of Net FCF generation above €1bn/year from 2021 2020 2021 (in €m) Evolution Impact on FCF vs 2020 EBITDA 4,465 Increase in EBITDA expected Tax and non-cash financial results (527) Cash impact of restructuring items and others (475) Decrease expected in exceptional cas
Slide 23: Normalized dividend policy
NORMALIZED DIVIDEND POLICY Dividend of €0.48 Payment fully Representing a total amount of c.€388m proposed to the General shareholders’ meeting in cash on May 21, 2021 2020 RESULTS 01 02 03 February 18, 2021 23
Slide 24: Capital allocation policy
CAPITAL 1 Investments in business and customer offer, serving the “raison d’être” ALLOCATION POLICY 2 Ordinary dividend: Fully in cash, intended to grow regularly 3 Bolt-on M&A strategy 4 Solid investment grade rating 5 Potential share buy-backs or equivalent 2020 RESULTS 01 02 03 February 18, 2021
Slide 25: Confirmation of strategic objectives
CONFIRMATION OF STRATEGIC OBJECTIVES OPERATIONAL OBJECTIVES 2020 Status Improvement in the Group NPS® by 2022 of +30 points (vs +23 points) since the start of the plan +20 points INCREASED Target to reduce assortments by -15% by 2020 -15% REACHED Carrefour-branded products accounting for one-third o
Slide 26: Focus on France
02 Focus on France
Slide 27: The 555 culture
THE 555 CULTURE 2020 RESULTS 01 02 03 February 18, 2021 27
Slide 28: Improving NPS across formats
IMPROVING NPS® ACROSS FORMATS FRANCE NPS ® HYPERMARKET NPS ® +16 points in 2020 +17 points in 2020 Dec. Jan. Feb. March April May June July Aug. Sep. Oct. Nov. Dec. Dec. Jan. Feb. March April May June July Aug. Sep. Oct. Nov. Dec. 2019 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020 2019
Slide 29: The TOP project to improve efficiency
THE TOP PROJECT TO IMPROVE EFFICIENCY 3 DEDICATED TEAMS › « Front »: Shelving › « Scan »: Labels, expiration dates, shrinkage and shortage management › « Back »: Pallets reception, storage management ROLL-OUT › More than 130 hypers and almost 20 supers to date › Full roll-out by end of summer 2021 R
Slide 30: Improving hypermarket barometer
IMPROVING HYPERMARKET BAROMETER Score 2020 YoY evolution GLOBAL SATISFACTION Quality of shopping Store accessibility Cleanliness Circulation in store Parking Price Price of Carrefour-branded products Accuracy of prices between shelf and cashier Price of gas Overall prices Promotion/ loyalty Interest
Slide 31: Giving the customer a voice to improve operations
GIVING THE CUSTOMER A VOICE TO IMPROVE OPERATIONS Collecting Customer customer Sharing customer verbatim log verbatim verbatim in store and action plan « Thanks to the cashier staff for their welcome despite the customers’ mood. However, a Scan terminal has been out of order for a long time!!! » 202
Slide 32: Customers at the heart
CUSTOMERS AT THE HEART An organization focused on customer ownership Customers THINK AS A CUSTOMER Employees Managers ACT AS AN OWNER Excom MAKE CARREFOUR THE BEST PLACE TO WORK CEO 2020 RESULTS 01 02 03 February 18, 2021 32
Slide 33: A profitable growth model gaining momentum
A PROFITABLE GROWTH MODEL GAINING MOMENTUM Customer satisfaction Renewed sales dynamics › Numerous projects in place to sharply › Strongest growth in almost 20 years improve customer satisfaction and › All segments positive experience › H2 2020: Best market share trend over › Price image improving a
Slide 34: A committed company
A committed company
Slide 35: Exceptional mobilization
EXCEPTIONAL MOBILIZATION Carrefour responsibly ensured its essential mission as a food distributor Employee and customer protection as an absolute priority: › Strong measures taken › Certification in several countries Concrete solidarity actions: › Creation of dedicated services for priority custome
Slide 36: CSR and food transition index at 115% in 2020
CSR AND FOOD TRANSITION INDEX AT 115% IN 2020 1. Organic agriculture 90% 2. Agroecology 101% PRODUCTS 3. Sustainable fishing 88% 106% 4. Sustainable forests 83% 5. Packaging 168% 6. Food waste 191% STORES 7. Waste 8. CO2 emissions 96% 303% 163% 9. "Food transition superheroes" 114% 10. Food transiti
Slide 37: Significant progress in 2020
SIGNIFICANT PROGRESS IN 2020 Packaging reduction (tons) Doubling of the initial objective of packaging 2017 2018 2019 2020 2025 reduction at -20,000 tons by 2025 -938 › Strong reduction on fruit and vegetables -1,867 -3,460 › First « returnable » project on national brands -6,154 Decrease in food wa
Slide 38: Performance recognized in extra-financial indices
PERFORMANCE RECOGNIZED IN EXTRA-FINANCIAL INDICES Rating Agency 2018 2019 2020 DJSI – RobecoSAM 69 73 77 MSCI A AA AA 68 Vigeo Eiris - 67 A1+ CDP Carbon A- A A- Palm oil B- B B Soy B- B B Meat C B- B Wood and paper B- B- B Water - - A- 2020 RESULTS 01 02 03 February 18, 2021 38
Slide 39: Appendix
Appendix
Slide 40: Definition NPS Net Promoter Score
DEFINITION NPS® Net Promoter Score 0 1 2 3 4 5 6 7 8 9 10 DETRACTORS PASSIVES PROMOTERS › The Net Promoter Score (NPS®) is a benchmark indicator in the business world. NPS® is a measure of customer satisfaction that is based on the answer to a simple and precise question: "Based on your recent exper
Slide 41: Q4 2020 Sales (+8.7% LFL)
Q4 2020 Sales (+8.7% LFL) +8.7% -0.1% +1.1% -1.3% -3.8% +4.4% -7.9% -3.5% €(86)m +5.5% +1.8% +25.3% +0.1% France Europe LatAm Asia €21.7 €22.7 bn €21.0 €20.9 bn bn bn Q4 2019 LFL Calendar Openings Scope, Petrol Q4 2020 Forex Q4 2020 IAS 29 Q4 2020 pre- ex petrol closures at at current at current IAS
Slide 42: Q4 2020 gross sales
Q4 2020 gross sales Change at Change at current LFL Organic growth Gross sales constant exch. rates inc. ex. petrol ex. petrol (in €m) exch. rates inc. petrol ex. calendar ex. calendar petrol France 10,073 -2.6% -2.6% +5.5% +3.8% Hypermarkets 5,298 -3.2% -3.2% +3.9% +3.0% Supermarkets 3,332 -0.1% -0
Slide 43: Q4 LFL (1/2)
Q4 LFL (1/2) FRANCE France LFL ex petrol ex calendar 5.5% Q4 - in €m Total Sales Hypermarkets Supermarkets Other formats 4.3% 3.8% Sales inc. VAT 10,073 5,298 3,332 1,443 1.0% 0.7% 0.7% Total variation -2.6% -3.2% -0.1% -5.9% -0.9% -0.9% LFL ex. petrol Q1 Q2 Q3 Q4 +5.5% +3.9% +9.8% +2.0% ex. calenda
Slide 44: Q4 LFL (2/2)
Q4 LFL (2/2) LATIN AMERICA Latin America LFL ex petrol ex calendar Q4 - in €m Total Sales Brazil Carrefour Retail Atacadão Argentina* 28.4% 25.3% 20.9% 17.1% Sales inc. VAT 4,008 3,417 976 2,441 592 14.5% 15.9% 15.1% 12.8% Total variation -10.7% -11.7% -23.1% -6.2% -4.6% LFL ex. petrol Q1 Q2 Q3 Q4 +
Slide 45: Q4 2020 technical effects
Q4 2020 technical effects Calendar Petrol Forex France -0.3% -5.4% - Hypermarkets -0.8% -5.4% - Supermarkets +0.2% -6.7% - Others, inc. convenience +0.6% -3.1% - Other European countries -0.0% -1.7% -0.7% Spain -0.7% -3.4% - Italy +0.1% -1.3% - Belgium +0.8% - - Poland +0.3% +0.3% -4.7% Romania +0.5
Slide 46: FY 2020 Sales (+7.8% LFL)
FY 2020 Sales (+7.8% LFL) +7.8% +0.1% +1.2% -1.0% -3.6% +4.4% -6.8% -2.4% €(211)m +3.6% +3.5% +23.0% +1.2% France Europe LatAm Asia €80.7 €84.3 €78.8 €78.6 bn bn bn bn FY 2019 LFL Calendar Openings Scope, Petrol FY 2020 Forex FY 2020 IAS 29 FY 2020 pre- ex petrol closures at at current at current IA
Slide 47: 2020 gross sales
2020 gross sales Change at Change at current LFL Organic growth Gross sales constant exch. rates inc. ex. petrol ex. petrol (in €m) exch. rates inc. petrol ex. calendar ex. calendar petrol France 37,937 -2.4% -2.4% +3.6% +2.6% Hypermarkets 19,126 -4.5% -4.5% +1.0% +0.4% Supermarkets 12,792 -0.2% -0.
Slide 48: Results unfavorably impacted by FX
Results unfavorably impacted by FX 2020 CURRENCY Evolution(1) -6.8% Brazilian Real -25.0% negative FX impact on 2020 Gross Sales Argentine Peso -33.4% Polish Zloty -3.3% -€269m Romanian Leu -1.9% negative FX impact on 2020 ROI Taiwanese Dollar +2.8% (1) Average foreign exchange rate 2020 RESULTS Feb
Slide 49: 2020 ROI growth of +16.4% at constant exchange rates
2020 ROI growth of +16.4% (at constant exchange rates) 2019 Evolution GROSS MARGIN in €m 2020 at constant FX restated(1) (€m / %) down 38bps, taking into account price investments, the momentary increase Net sales 72,397 70,719 +7.8% LFL in logistics costs and the evolution Gross margin from recurri
Slide 50: 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 2019 2019 2020 constant current exch. 2020 constant current exch. restated(1) restated(1) exch. rates rates exch. rates rates in €m France 34,765 34,135 (1.8%)
Slide 51: Significant reduction in non-recurring expenses
Significant reduction in non-recurring expenses 2019 in €m 2020 restated(1) 2019 included France hypermarkets and Italy transformation initiatives Restructuring costs (549) (93) Incl. impairment on Italy and French Impairment and asset write-offs (200) (295) hypermarkets Results from asset disposals
Slide 52: 2020 income statement
2020 income statement 2019 in €m 2020 restated(1) Net Sales 72,397 70,719 Net sales, net of loyalty program costs 71,651 69,967 Other revenue 2,491 2,183 Total revenue 74,142 72,150 Cost of goods sold (58,051) (56,705) Gross margin 16,091 15,445 SG&A (11,906) (11,233) Recurring operating income befo
Slide 53: Impact of COVID-19 on the interim financial statements
Impact of the COVID-19 on the interim financial statements Impact in Income Statement: › The costs incurred in connection with the Covid-19 health crisis were recognized in recurring operating income for 2020, including necessary costs relating to logistics or product distribution in stores or to cu
Slide 54: Tax expense
Tax expense 2019 in €m 2020 restated(1) Income before taxes 719 1,351 Non-recurring income and expenses, net (1,030) (474) Income before taxes 1,749 1,826 (excl. non-recurring income and expense) Mainly reflects reduction in tax rate Full-year normative tax rate (2) 31.4% 30.1% in France and Belgium
Slide 55: Earnings per share
Earnings per share 2019 (€ per share) 2020 restated(1) Net income from continuing operations, Group share 0.04 0.82 Net income from discontinued operations, Group share 1.39 (0.03) Net income, Group share 1.42 0.80 Adjusted net income, Group share 1.09 1.26 Weighted average number of shares pre-dilu
Slide 56: Enhanced liquidity and solid balance sheet
Enhanced liquidity and solid balance sheet Debt redemption schedule (in €m) › Credit Rating as of December 31, 2020: 3.88% BBB stable outlook (S&P) and Baa1 2.08% negative outlook (Moody’s) 1.75% 1.25% 1.75% 0.49% 0.51% › April 2020: Successful issuance 1,500 of €1bn bonds with a maturity of 8 years
Slide 57: Stores under banners at end Q4 2020
Stores under banners at end Q4 2020 (#) Hypermarkets Supermarkets Convenience Cash & Carry Total France 248 1,179 4,018 147 5,592 Other European countries 456 1,873 3,156 68 5,553 Spain 205 112 906 27 1,250 Italy 48 492 932 13 1,485 Belgium 40 442 305 - 787 Poland 90 160 687 - 937 Romania 40 193 108
Slide 58: 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