Slide 1: March 9, 2017 | 1
March 9, 2017 | 1
Slide 2: 2016 Overview and Outlook
2016 OVERVIEW AND OUTLOOK 01 March 9, 2017 | 2
Slide 3: Carrefour, the reference in food retail
Carrefour, the reference in food retail 01. 2016 OVERVIEW & OUTLOOK March 9, 2017 | 3
Slide 4: A balanced portfolio
A balanced portfolio Integrated countries Countries in partnership 01. 2016 OVERVIEW & OUTLOOK March 9, 2017 | 4
Slide 5: Carrefour: The reference in food retail
Carrefour: The reference in food retail Unique know- Pioneer Quality Powerful Sourcing how in organic food accessible to all exclusive brands expertise in fresh produce and Quality Lines Food represents 83% of the Group sales in 2016 (growth of over 4% in 2016) 01. 2016 OVERVIEW & OUTLOOK March 9, 2
Slide 6: CSR is at the heart of Carrefour's know-how
CSR is at the heart of Carrefour’s know-how Fight wastage Biodiversity Partnerships Food Agroecology Diversity Climate – Energy Sustainable fishing SMEs and Producers Packaging Sustainable forestry Nutrition/Health Waste Beekeeping Solidarity Included in the Dow Jones Sustainability Index Europe in
Slide 7: Carrefour, pioneer in organic products
Carrefour, pioneer in organic products ROLL-OUT OF ORGANIC FOOD DEVELOPMENT OF OFFER ACQUISITION OF GREENWEEZ AREAS IN STORE ORGANIC FOOD SALES IN 2016: 3,000 ORGANIC FOOD SKUs OF WHICH MORE THAN 800 UNDER PRIVATE LABELS +32% PROGRAM TO ACCELERATE ORGANIC FARMING LEADING ONLINE ORGANIC FOOD PARTNERS
Slide 8: A multiformat Group: Everyone under one roof
A multiformat Group: “Everyone under one roof” 2012 1963 1999 2007 2016 to 2015 First Acceleration hypermarket Promodès Atacadão in convenience Rue du Commerce Billa, Dia, Eroski 01. 2016 OVERVIEW & OUTLOOK March 9, 2017 | 8
Slide 9: The center of gravity is shifting towards convenience
The center of gravity is shifting towards convenience BREAKDOWN OF STORES UNDER BANNERS BY FORMAT GROSS SALES BREAKDOWN – (%) 14,500 Evolution stores 2012 vs. 2019e 11,935 350 +100% stores 9,995 1 450 +6% 42% 305 49% stores >50% 164 1,328 3,700 +24% 1,366 3,227 2,986 58% 51% <50% 9,000 + 64% 7,075 5
Slide 10: Multiformat accelerates growth
Multiformat accelerates growth EXAMPLES GAIN new clients +20% market share gain in Italy over 2 years 1.8x existing clients A Carrefour multiformat client CONVERT spends 1.8x more than an to multiformat exclusively hypermarket client* 01. 2016 OVERVIEW & OUTLOOK *Study on a panel in France in H1 201
Slide 11: E-commerce, an additional format
E-commerce, an additional format HYPERMARKETS SUPERMARKETS CASH & CARRY CONVENIENCE E-COMMERCE 01. 2016 OVERVIEW & OUTLOOK Selected banners March 9, 2017 | 11
Slide 12: Rapid roll-out of e-commerce
Rapid roll-out of e-commerce ALL COUNTRIES HAVE AN ONLINE OFFER TARGETED ACQUISITIONS FRANCE SPAI N I TALY BELGIUM POLAND ROMANIA ARGENTINA BRAZIL CHINA TAIWAN Food e-commerce in progress in progress Non-food e-commerce in progress Marketplace in progress in progress in
Slide 13: 2020 e-commerce prospects
2020 e-commerce prospects GROSS MERCHANDISE VOLUME €4bn Target €1.2bn in 2016 2020 target x3 01. 2016 OVERVIEW & OUTLOOK March 9, 2017 | 13
Slide 14: Omnichannel reinforces multiformat
Omnichannel reinforces multiformat +20% +10% Increase in average basket Growth Hyper- Hyper- of traffic market market Hyper- + Hyper- + market Drive market Click & Gain Collect new clients Rejuvenate client base A CLIENT WHO ADOPTS DRIVE OR CLICK & COLLECT SPENDS MORE Source : 2016 study based on a
Slide 15: Omnichannel multiplies contacts and enriches data
Omnichannel multiplies contacts and enriches data LOYALTY AND MEANS OF PAYMENT ENHANCE CUSTOMER KNOWLEDGE 13 million clients per day 55 million households are loyalty cardholders 6.5 million active PASS cards 01. 2016 OVERVIEW & OUTLOOK March 9, 2017 | 15
Slide 16: Non-food and services dynamized by omnichannel
Non-food and services dynamized by omnichannel A differentiated assortment Powerful exclusive labels E-commerce: 3 countries have a Marketplace A complementary and additional offer 6 countries by end 2017 3 million SKUs Services rolled out online 01. 2016 OVERVIEW & OUTLOOK March 9, 2017 | 16
Slide 17: Carrefour, a culture of innovation
Carrefour, a culture of innovation Formats Products Experiment Iterate Deploy Concepts Services 01. 2016 OVERVIEW & OUTLOOK March 9, 2017 | 17
Slide 18: Differentiated formats
Differentiated formats SUPECO: C&C FORMAT INSPIRED BY FRANCE: ATACADÃO MARKET AND ROLLED ST MARCEL OUT IN 4 COUNTRIES TO DATE ITALIE: CLUSTERIZATION GOURMET URBAN ATTRACTION 01. 2016 OVERVIEW & OUTLOOK March 9, 2017 | 18
Slide 19: Innovative concepts
Innovative concepts ITALY: TERRE D’ITALIA RESTAURANT FRANCE: BULK WALL SPAIN: NEW LAYOUT FOR APPLIANCES FRANCE: ORGANIC FOOD AREA SPAIN: NEW FMCG LAYOUT BELGIUM: BEER CELLAR 01. 2016 OVERVIEW & OUTLOOK March 9, 2017 | 19
Slide 20: Products that make a difference
Products that make a difference FRESH PRODUCE: REAL KNOW-HOW REFLETS DE FRANCE: 600 SKUs ORGANIC FOOD SALES:+32% IN 2016 800 CARREFOUR BIO SKUs VEGGIE: THE 1ST VEGETARIAN PRIVATE LABEL « REPACKAGING » OF OWN BRAND TEX: 22% MARKET SHARE IN HYPERS & SUPERS 01. 2016 OVERVIEW & OUTLOOK March 9, 2017 | 2
Slide 21: Services that facilitate daily life
Services that facilitate daily life FINANCIAL SERVICES FRANCE: LAUNDROMAT IN-STORE POST OFFICE CORNER BELGIUM: BRINGR FRANCE: LIVRAISONEXPRESS.FR 01. 2016 OVERVIEW & OUTLOOK March 9, 2017 | 21
Slide 22: A new collaborative and agile spirit of innovation
A new collaborative and agile spirit of innovation 2 HACKATHONS France – PIKIT in 2016 Connected object 129 participants allowing to shop 15 projects online from home 6+ incubations Innovation team dedicated to Cargo identifying innovative start- ups. Creation of a dedicated OptiMiam: Fight against
Slide 23: Operational efficiency is a priority (1/2)
Operational efficiency is a priority (1/2) EXAMPLE OF CHINA: INTEGRATION AND OPTIMIZATION OF LOGISTICS % of goods supplied by our BEIJING/TIANJIN DC distribution centers: 40 stores 2017 target: 80% December 2015 Increase in assortment: +20% in small- and mid-sized cities SHENYANG DC starting in 2
Slide 24: Operational efficiency is a priority (2/2)
Operational efficiency is a priority (2/2) EXAMPLE OF FRANCE: REINFORCED NETWORK OF MULTIFORMAT WAREHOUSES 2018 CARAVELLE TARGETS* 2013 2018 From 67 to 55 warehouses in France of which 34 are multiformat Number of Km -20% Cost of package -5% Product availability +2% 01. 2016 OVERVIEW & OUTLOOK *2018
Slide 25: CSR contributes to operational efficiency
CSR contributes to operational efficiency Energy Reducing wastage Energy consumption reduced by Reduce food waste by 50% -9.3% in 2016 by 2025 CSR: Doing our job well Training Biodiversity Increase sales of products from Quality New skills: data scientists, innovation, Lines and organic farming ever
Slide 26: A model strongly focused on value-creation
A model strongly focused on value-creation 01. 2016 OVERVIEW & OUTLOOK March 9, 2017 | 26
Slide 27: Decrease in capex and evolving mix as of 2017
Decrease in capex and evolving mix as of 2017 BREAKDOWN OF CAPEX BY NATURE MEDIUM-TERM TRENDS 2017 CAPEX 2016 (ex Cargo) Remodeling €2.4bn 18% 29% Maintenance NORMATIVE CAPEX 21% €2.5bn Expansion €2.3bn 32% to Remodeling Maintenance IT & Omnichannel €2.5bn Expansion IT & Omnichannel 01. PRÉSENTATION
Slide 28: Value-creation drivers
Value-creation drivers Solid Disciplined Control of Balanced generation of Capex Working capital operating cash between €2.3bn Capital allocation, flow and €2.5bn per Requirements combining year (€2.4bn in linked to improved continued targeted 2017), results acquisitions, with strict Return on Inves
Slide 29: Financial outlook – 2017 & medium-term
Financial outlook – 2017 & medium-term Total sales growth of 3% to 5% Planned IPOs of Carmila Continued increase in Free Cash at constant exchange rates in and Brazilian operations in 2017, Flow, with a new increase in 2017 2017 market conditions permitting Capex decrease in 2017 to Payout of betwee
Slide 30: 2016 Financial Results
2016 FINANCIAL RESULTS 02 March 9, 2017 | 30
Slide 31: 2016 key figures
2016 key figures RECURRING ADJUSTED OPERATING NET INCOME, FREE CASH FLOW NET SALES EBITDA MARGIN(2) INCOME GROUP SHARE EX. EXCEPTIONAL ITEMS NET DEBT €76,645m 5.1% €2,351m €1,031m €1,039m €4,531m up a a margin of or up an improvement of +2.7%(1) Stable margin 3.1% 1.39 €/per share +9.2% €15m (1) At
Slide 32: Organic growth of 3.0% in 2016
Organic growth of 3.0% in 2016 2016 SALES EVOLUTION – (in €m and %) +3.0% 0.0% +3.0% +2.7% +0.2% €79.2 -0.5% €79.0 -0.4% bn €76.9 bn -3.1% €76.6 bn bn 2015 LFL Scope effect1 2016 organic Petrol & Acquisitions/ 2016 net sales Currencies 2016 net sales ex petrol net sales calendar effect disposals at
Slide 33: Further sales growth
Further sales growth ORGANIC SALES GROWTH EVOLUTION EX PETROL - 2012 TO 2016 – (in %) +3.0% CAGR 2012 – 2016 +3.0% +2.6% +3.9% +2.3% +1.0% 2012 2013 2014 2015 2016 2016 02. FULL-YEAR 2016 RESULTS March 9, 2017 | 33
Slide 34: Gross margin from recurring operations held up well
Gross margin from recurring operations held up well 17,985 GROSS MARGIN FROM RECURRING +3.5% 2016 2016 OPERATIONS at constant (in €m) exch. rates 2015 18,019 GROSS MARGIN 2016 2016 23.5% FROM RECURRING OPERATIONS +10bp (as a % of net sales) 2015 23.4% 02. FULL-YEAR 2016 RESULTS March 9, 2017 | 34
Slide 35: Good control of operating costs
Good control of operating costs 13,125 OPERATING +4.9% 2016 2016 COSTS at constant (in €m) 2015 13,070 exch. rates OPERATING 2016 2016 18.7% COSTS (as a % of net sales, +10bp ex. petrol) 2015 18.6% 02. FULL-YEAR 2016 RESULTS March 9, 2017 | 35
Slide 36: Stable asset costs as a percentage of sales
Stable asset costs as a percentage of sales 2,509 ASSET +2.8% 2016 2016 COSTS at constant (in €m) 2015 2,505 exch. rates ASSET 2016 2016 3.6% COSTS (as a % of net sales, Stable ex. petrol) 2015 3.6% 02. FULL-YEAR 2016 RESULTS March 9, 2017 | 36
Slide 37: France: ROI reflecting investments to prepare for the future
France: ROI reflecting investments to prepare for the future NET SALES LFL (1) €35,877m +0.3% ROI MARGIN €1,031m 2.9% (1) ex. petrol, ex. calendar 02. FULL-YEAR 2016 RESULTS March 9, 2017 | 37
Slide 38: Other European countries: Strong increase in profitability
Other European countries: Strong increase in profitability NET SALES LFL (1) €20,085m +2.0% ROI MARGIN €712m 3.5% +70 bps + 25.7% at constant exch. rates (1) ex. petrol, ex. calendar 02. FULL-YEAR 2016 RESULTS March 9, 2017 | 38
Slide 39: Latin America: Continued strong momentum, driven by Brazil
Latin America: Continued strong momentum, driven by Brazil NET SALES LFL (1) €14,507m +13.5% ROI MARGIN €711m 4.9% Stable + 3.7% at constant exch. rates (1) ex. petrol, ex. calendar 02. FULL-YEAR 2016 RESULTS March 9, 2017 | 39
Slide 40: Asia: Continued transformation in China and further growth in Taiwan
Asia: Continued transformation in China and further growth in Taiwan NET SALES LFL (1) €6,176m -5.0% ROI MARGIN €(58)m -0.9% (1) ex. petrol, ex. calendar 02. FULL-YEAR 2016 RESULTS March 9, 2017 | 40
Slide 41: Adjusted net income, Group share
Adjusted net income, Group share (in €m) 2015 2016 (in €m) 2015 2016 EBITDA (1) 3,955 3,886 Net income from continuing operations 1,120 934 Recurring operating income 2,445 2,351 Minority share of net income from -143 -148 continuing operations Net income from associates and JVs 44 -36 Net income fr
Slide 42: 2016 Free cash flow
2016 Free cash flow (in €m) 2015 2016 Gross cash flow 2,733 2,964 Change in working capital 81 351 Discontinued activities 3 -11 Operating cash flow 2,818 3,305 Capital expenditure (ex. Cargo) -2,378 -2,492 Net capital expenditure (Cargo) - -249 Change in net payables to fixed asset suppliers 136 -7
Slide 43: Slight drop in net debt
Slight drop in net debt (in €m) 2015 2016 Opening net debt (December 31) -4,954 -4 546 Free cash flow 687 603 Acquisitions -85 -190 Disposals 109 45 Others -28 -25 Discontinued operations 0 16 Cash flow after acquisitions and disposals 682 449 Dividends paid by parent company -390 -121 Dividends pai
Slide 44: Credit rating and debt maturity maintained
Credit rating and debt maturity maintained DEBT REDEMPTION SCHEDULE – (in %) 5.25% 4.00% 3.88% On April 26, 2016, issua issuance 2.44% 1.75% 1.75% 1.25% of a €750m bond with a maturity 0.75% of 8 years and a 0.75% coupon 1,250 1,000 1,000 1,000 1,000 In 2016, €667m of bonds reached maturity 750 750
Slide 45: Stable proposed dividend: €0.70 per share
Stable proposed dividend: €0.70 per share Dividend Payout of 51% of Payment in of €0,70 adjusted net income, shares or in cash proposed Group share, in line to the General with our distribution Shareholders’ policy meeting on June 15, 2017 02. FULL-YEAR 2016 RESULTS March 9, 2017 | 45
Slide 46: Appendix
APPENDIX March 9, 2017 | 46
Slide 47: 2016 income statement
2016 income statement (in €m) 2015 2016 Net sales 76,945 76,645 Net sales, net of loyalty program costs 76,393 76,054 Other revenue 2,464 2,720 Total revenue 78,857 78,774 Cost of good sold -60,838 -60,789 Gross margin from recurring operations 18,019 17,985 SG&A -14,105 -14,147 Recurring operating
Slide 48: 2016 net sales and recurring operating income by region
2016 net sales and recurring operating income by region NET SALES RECURRING OPERATING INCOME Organic growth Variation at Variation at Variation at ex petrol current exch. constant current exch. (in €m) 2015 2016 ex calendar rates 2015 2016 exch. rates rates France 36,272 35,877 -0.9% -1.1% 1,191 1,0
Slide 49: Adjusted net income, Groupe share
Adjusted net income, Groupe share (in €m) 2015 2016 Net income from continuing operations, Group share 977 786 Restatement for non-recurring income and expenses (before tax) 257 372 Restatement for exceptional items in net financial expenses 65 30 Tax impact(1) -159 -179 Restatement on share of inco
Slide 50: Earnings per share
Earnings per share (€ per share) 2015 2016 Net income from continuing operations 1.35 1.06 Net income from discontinued operations 0.00 (0.05) Net income, Group share 1.35 1.01 Adjusted net income, Group share 1.54 1.39 Weighted average number of shares pre-dilution (in millions) (1) 724.4 739.2 Not
Slide 51: Stores under banners at end 2016
Stores under banners1 at end 2016 (#) Hypermarkets Supermarkets Convenience Cash & Carry Total France 243 1,062 4,222 143 5,670 Spain 175 129 545 849 Belgium 45 442 285 772 Italy 57 412 586 13 1,068 Poland 86 159 641 886 Romania 32 213 53 298 Others 44 422 202 668 Other European countries 439 1,777
Slide 52: 2016 gross sales
2016 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 40,126 -1.2% -1.2% -0.5% -0.1% +0.3% -0.9% Hyp
Slide 53: 2016 capex breakdown
2016 capex breakdown BREAKDOWN OF CAPEX BREAKDOWN OF CAPEX 2016 CAPEX BY NATURE BY REGION 7% 18% 29% 21% 41% €2,492m 21% (ex Cargo) 25% 32% 6% Remodelling Maintenance France DIA Europe Latin Expansion IT & omnichannel Asia America APPENDIX March 9, 2017 | 53
Slide 54: Hypermarkets: The format for routine shopping needs
Hypermarkets: The format for routine shopping needs With low prices all year round, in-store animations and promotions 243 stores in France 1,328 stores ranging from 2,400 m² to 23,000 m² Banner : 439 stores in other European countries 182 stores in Latin America 374 stores in Asia 90 stores in othe
Slide 55: Supermarkets: Choice close to home
Supermarkets: Choice close to home 3,227 stores ranging from 1,000m² to 3,500 m² Banners: 1,062 stores in France 1,777 stores in other European countries 168 stores in Latin America 38 stores in Asia 182 stores in other countries APPENDIX March March9,9,2017 207 | 55
Slide 56: Convenience: Essential daily products
Convenience: Essential daily products Catering to daily shopping needs with extended shopping hours 4,222 stores in France 7,075 stores ranging from 200 m² to 900 m² Banners: 2,312 stores in other European countries 468 stores in Latin America 27 stores in Asia 46 stores in other countries APPENDIX
Slide 57: Cash & Carry: Wholesale prices and customized services
Cash & Carry: Wholesale prices and customized services 305 stores Banners: 143 stores in France 13 stores in other European countries 134 stores in Latin America 2 stores in Asia 13 stores in other countries APPENDIX March March9,9,2017 207 | 57
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 f