Carrefour Sa · EURONEXT:CA
Carrefour Sa — H1 2015 Earnings Presentation
23 slides from Carrefour Sa's earnings presentation, July 2015
Slide 1: First-Half Results 2015
<6 FIRST-HALF RESULTS 2015
Slide 2: Financial Results
FINANCIAL RESULTS PIERRE-JEAN SIVIGNON 2
Slide 3: Further Profit Growth in First-Half 2015
FURTHER PROFIT GROWTH IN FIRST-HALF 2015 Variation Variation at constant at current (in €m) H1 2014 (1) H1 2015 (2) exch. rates exch. rates Net sales 35,870 37,739 +3.9% +5.2% Net sales excluding petrol 32,119 34,337 +5.4% +6.9% Gross margin 8,068 8,694 +6.1% +7.8% EBITDA (3) 1,416 1,488 +4.6% +5.1%
Slide 4: Strong Growth in Organic Sales
STRONG GROWTH IN ORGANIC SALES H1 2015 sales variation (in €bn and %) +1.3% +5.2% +2.9% +2.4% +3.9% +0.9% +2.0% €37.7 €37.3 bn €36.9 -1.5% bn bn €35.9 bn H1 2014 LFL Net H1 2015 Petrol Acquisitions/ H1 2015 Currencies H1 2015 net sales openings ex. petrol impact Disposals net sales impact net sales
Slide 5: Improved Gross Margin
IMPROVED GROSS MARGIN Variation Variation at constant at current (in €m) H1 2014 H1 2015 exch. rates exch. rates Net sales 35,870 37,739 +3.9% +5.2% Gross margin 8,068 8,694 +6.1% +7.8% Gross margin % 22.5% 23.0% +50bp • Gross margin growth in value and as a percentage of sales • Improvement as a re
Slide 6: Operating Costs Under Control
OPERATING COSTS UNDER CONTROL Variation Variation at constant at current (in €m) H1 2014 H1 2015 exch. rates exch. rates Operating costs 6,220 6,702 +6.2% +7.7% As a % of sales excluding petrol 19.4% 19.5% +10bp As a % of sales 17.4% 17.8% +40bp Asset costs 1,131 1,266 +7.9% +11.9% As a % of sales 3
Slide 7: France: Solid First-Half, Stable Underlying Operating Margin
FRANCE: SOLID FIRST-HALF, STABLE UNDERLYING OPERATING MARGIN Variation (in €m) H1 2014 H1 2015 Variation proforma Net sales 17,005 17,587 +1.8% (1) +1.8% (1) Recurring Operating Income 406 321 -20.9% -2.2% ROI margin % 2.4% 1.8% -60bp stable • Third consecutive year of first-half organic growth: gro
Slide 8: Other European Countries: Sharp Improvement in Profitability
OTHER EUROPEAN COUNTRIES: SHARP IMPROVEMENT IN PROFITABILITY (in €m) H1 2014 H1 2015 Variation Net sales 9,173 9,356 +0.3% (1) Recurring Operating Income 36 122 +244.1% ROI margin % 0.4% 1.3% +90bp • First-half 2015 marked the forth consecutive half of improved profitability • More than three-fold g
Slide 9: Latin America: Further Growth Momentum
LATIN AMERICA: FURTHER GROWTH MOMENTUM Variation Variation at constant at current (in €m) H1 2014 H1 2015 exch. rates exch. rates Net sales 6,454 7,257 +15.5% (1) +12.4% Recurring Operating Income 247 296 +26.3% +20.0% ROI margin % 3.8% 4.1% +30bp • Strong organic sales growth amid a challenging env
Slide 10: Asia: Adapting Our Model in China, Return to Growth in Taiwan
ASIA: ADAPTING OUR MODEL IN CHINA, RETURN TO GROWTH IN TAIWAN Variation Variation at constant at current (in €m) H1 2014 H1 2015 exch. rates exch. rates Net sales 3,237 3,538 -9.7% (1) +9.3% Recurring Operating Income 83 50 -49.5% -40.2% ROI margin % 2.6% 1.4% -120bp • Gross margin held up well • Dr
Slide 11: Strong Growth in Adjusted Net Income, Group Share
STRONG GROWTH IN ADJUSTED NET INCOME, GROUP SHARE (in €m) H1 2014 H1 2015 Recurring operating income 717 726 Net income from associates and joint ventures 9 34 ROC including associates and joint ventures 726 761 In H1 2014: Mainly the capital gain from the Non-recurring income 264 -16 contribution o
Slide 12: Improved Operating Working Capital at June 30th 2015
IMPROVED OPERATING WORKING CAPITAL AT JUNE 30TH 2015 Operating working capital (in days of COGS) TOTAL -17 -19 Clients 3 3 Inventories 37 39 Suppliers -57 -61 H1 2014 H1 2015 12
Slide 13: Sustained Investments
SUSTAINED INVESTMENTS Investment • Continued program to bring stores (in €m) up to standards (investments in maintenance and renovations), particularly in France and Brazil TOTAL 818 804 • Continued expansion of Atacadao in Brazil • Investments in IT simplification and multi-channel roll-out France
Slide 14: Sharp Improvement in Free Cash Flow in First-Half 2015
SHARP IMPROVEMENT IN FREE CASH FLOW IN FIRST-HALF 2015 6 months 6 months (in €m) to June 30th, 2014 to June 30th, 2015 Gross cash flow (excluding discontinued operations) 1,168 1,180 Change in working capital -2,454 -2,104 Capital expenditures -818 -804 Change in net payables to fixed asset supplier
Slide 15: Lower Net Debt at End-June 2015 versus End-June 2014
LOWER NET DEBT AT END-JUNE 2015 VERSUS END-JUNE 2014 6 months 6 months (€m) to June 30th, 2014 to June 30th, 2015 Opening net debt (at December 31st) -4,117 -4,954 Free cash flow -2,412 -1,917 Acquisitions -268 -57 Disposals 82 1 Others -68 1 Discontinued activities 0 0 Cash flow after investments a
Slide 16: Improved Credit Rating and Debt Maturity
IMPROVED CREDIT RATING AND DEBT MATURITY Maturity prior to bond buyback 2014 issuance Debt redemption schedule 1,250 2015 issuance (in €m) Average coupon 1,000 1,000 1,000 1,000 750 667 279 100 3.84% 4.38% 2.44% 5.25% 1.75% 4.00% 3.88% 1.75% 1.25% 2015 2016 2017 2018 2019 2020 2021 2022 2025 • On Ju
Slide 17: Conclusion
<® FIRST-HALF RESULTS 2015 CONCLUSION
Slide 18: Continued Growth Momentum in H1 2015
CONTINUED GROWTH MOMENTUM IN H1 2015 • Strong sales growth • Sales up +2.9% on an organic basis • Growth on an already strong base in H1 2014 • Solid profit growth • +2.6% growth in Recurring Operating Income, +13,5% proforma • +17.5% growth in adjusted net income, Group share • Strong improvement i
Slide 19: Appendix
<® FIRST-HALF RESULTS 2015 APPENDIX
Slide 20: H1 2015 Income Statement
H1 2015 INCOME STATEMENT H1 2014 restated (in €m) for IFRIC 21 H1 2015 Variation Net sales 35,870 37,739 +5.2% Net sales, net of loyalty 35,564 37,470 +5.4% Other revenues 1,192 1,247 +4.6% Total revenues 36,757 38,718 +5.3% Cost of goods sold -28,688 -30,024 Gross margin 8,068 8,694 +7.8% SG&A -6,6
Slide 21: Adjusted Net Income, Group Share
ADJUSTED NET INCOME, GROUP SHARE H1 2014 restated (in €m) for IFRIC 21 H1 2015 Variation Net Income from continuing operations, Group Share 399 230 -42.2% Restatement for non recurring income and expenses -264 16 (before tax) Restatement for exceptional items in net financial expenses 11 31 Tax impa
Slide 22: Stores under Group Banners at End June 2015
STORES UNDER GROUP BANNERS (INCL. FRANCHISEES AND PARTNERS) AT END JUNE 2015 Hypers Supers Convenience Cash & Carry TOTAL France 242 963 4,333 142 5,680 Spain 173 125 340 638 Belgium 45 440 263 748 Italy 59 445 614 18 1,136 Poland 84 153 524 761 Romania 28 101 52 181 Other 90 630 527 1,247 Other Eur
Slide 23: Disclaimer
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 m