Slide 1: 2017 Full Year Results
2017 FULL YEAR RESULTS February 28, 2018 | 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: Introduction
INTRODUCTION ALEXANDRE BOMPARD 01 CHAIRMAN & CEO February 28, 2018 | 3
Slide 4: FY 2017 Financial Results
FY 2017 FINANCIAL RESULTS MATTHIEU MALIGE 02 CFO February 28, 2018 | 4
Slide 5: 2017 Key Figures: A difficult year
2017 Key Figures: A difficult year RECURRING ADJUSTED OPERATING NET INCOME, FREE CASH FLOW NET SALES EBITDA (1) INCOME GROUP SHARE EX. EXCEPTIONAL ITEMS NET DEBT (2) €78,897m €3,636m €2,006m €773m €950m €3,743m up down down down down an improvement of +1.6% LFL -6.4% -14.7% -25.0% €(90)m €788m vs +3
Slide 6: Total FY 2017 sales: +2.6% growth at constant exchange rates
Total FY 2017 sales: +2.6% growth at constant exchange rates in a challenging environment FY 2017 NET SALES EVOLUTION – (in €m and %) +0.3% +2.9% +1.6% +0.6% +2.2% -0.5% +0.8% +0.2% +2.6% €78.9 bn €76.6 bn FY 2016 LFL Store FY 2017 Calendar Acquisitions/ Petrol FY 2017 Forex FY 2017 ex petrol openin
Slide 7: Pressure on gross margin and higher costs
Pressure on gross margin and higher costs (in €m) 2016 2017 Evolution Net sales 76,645 78,897 +2.9% Gross margin from recurring operations 17,985 18,214 +230 +1.3% As a % of net sales 23.5% 23.1% -38bps Total operating costs (15,634) (16,209) (575) +3.7% As a % of net sales -20.4% -20.5% -15bps Recu
Slide 8: Positive FX impact on ROI in 2017, mainly due to BRL
Positive FX impact on ROI in 2017, mainly due to BRL evolution FY 2017 Currency evolution +€58m positive FX impact in 2017 on ROI Brazilian Real +6.5% Argentinean Peso -12.9% 5,0 of which +€44m attributable to the BRL (1) 2016 2017 Polish Zloty +2.5% 4,5 2018 Romanian Leu -1.7% 4,0 3.98 2016 average
Slide 9: France: Margin pressure reflecting a highly competitive environment
France: Margin pressure reflecting a highly competitive environment % (in €m) 2016 2017 change Net sales 35,877 35,835 -0.1% LFL +0.8% ex petrol, ex calendar ROI 1,031 692 -32.9% ROI margin 2.9% 1.9% -94bp ● Tough commercial momentum throughout the year in a persistently challenging competitive envi
Slide 10: Other European Countries: Operating margin slightly down
Other European Countries: Operating margin slightly down, reflecting contrasting performances % change % change at current at constant (in €m) 2016 2017 FX FX Net sales 20,085 21,112 +5.1% +5.1% LFL +1.3% ex petrol, ex calendar ROI 712 677 -4.9% -4.8% ROI margin 3.5% 3.2% -34bp ● Total growth of +5.
Slide 11: Latin America: Performance in Brazil offset by difficulties in Argentina
Latin America: Performance in Brazil offset by difficulties in Argentina % change % change at current at constant (in €m) 2016 2017 FX FX Net sales 14,507 16,042 +10.6% +8.3% LFL +6.1% ex petrol, ex calendar ROI 711 715 +0.6% -7.0% ROI margin 4.9% 4.5% -44bp ● Argentina recorded operating losses in
Slide 12: Asia: Improvement of profitability confirmed in H2
Asia: Improvement of profitability confirmed in H2 % change % change at current at constant (in €m) 2016 2017 FX FX Net sales 6,176 5,907 -4.4% -3.2% LFL -3.7% ex petrol, ex calendar ROI -58 4 n.a. n.a. ROI margin -0.9% 0.1% +101bp ● Asia back to positive ROI in 2017 ● Action plans in China are bear
Slide 13: Adjusted net income, Group share, of €773mn
Adjusted net income, Group share, of €773mn (in €m) 2016 2017 Recurring operating income 2,351 2,006 Net income from associates and JVs -36 4 Reflects a €700mn goodwill impairment in Italy Non-recurring income and expenses, net -372 -1 310 EBIT 1,943 700 Reflects a €70mn decrease in net financial ex
Slide 14: Non-Recurring Income: Includes impairment and write-offs
Non-Recurring Income: Includes impairment and write-offs (in €m) 2016 2017 Restructuring costs (154) (279) Reorganization plans in several countries Impairment and write-offs of goodwill (5) (707) A €700mn impairment of Italian goodwill Impairment and write-offs of Property and equipment and intangi
Slide 15: 2017 Free Cash Flow
2017 FREE CASH FLOW (in €m) 2016 2017 EBITDA 3,886 3,636 Financial result (109) (116) Cash impact of non-recurring items (360) (320) Other (including tax paid) (453) (548) Gross cash flow 2,964 2,653 Change in working capital 351 189 Discontinued activities -11 0 Operating cash flow 3,305 2,843 Capi
Slide 16: 2017 Net Debt: €788M improvement
2017 Net Debt: €788M improvement €4,531m 292 317 447 254 €3,743m 174 950 1321 Including Cargo and restructuring Including the costs Eroski acquisition 2016 2016 FCF ex Exceptional Cost of net Dividends Brazil IPO FX impact Others 2017 2017 Net Net Debt Debt exceptionals Items financial debt Net Net
Slide 17: Credit Rating and Debt Maturity
Credit Rating and Debt Maturity DEBT REDEMPTION SCHEDULE – (in €m and %) 5.25% 4.00% 3.88% On June 14th, 2017, issuance of $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 1,000 During 2017
Slide 18: Unchanged Payout Policy: Dividend of €0.46 per share
Unchanged Payout Policy: Dividend of €0.46 per share Dividend Payout of 45% of Payment in of €0.46 adjusted net income, shares or in cash (-34% vs 2016) Group share, in line proposed with our distribution to the General policy Shareholders’ meeting on June 15, 2018 02. FULL-YEAR 2017 RESULTS Februar
Slide 19: Outlook 2018, a pivotal year in the Group's transformation
OUTLOOK 2018, a pivotal year in the Group’s transformation Group results for 2018 will remain closely linked to the evolution of foreign exchange rates (BRL in particular) FY 2018 – technical effects Depreciation should continue to increase in 2018 given the investment levels of the past years a
Slide 20: Q&A
Q&A February 28, 2018 | 20
Slide 21: Appendix
APPENDIX February 28, 2018 | 21
Slide 22: 2017 Income Statement
2017 INCOME STATEMENT (in €m) 2016 2017 Net sales 76,645 78,897 Net sales, net of loyalty program costs 76,054 78,253 Other revenue 2,720 2,722 Total revenue 78,774 80,975 Cost of good sold -60,789 62,760 Gross margin from recurring operations 17,985 18,214 SG&A -14,147 14,641 Recurring operating in
Slide 23: 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) 2016 2017 exch. rates rates 2016 2017 exch. rates rates France 35,877 35,835 -0.1% -0.1% 1,031 692 -32.9%
Slide 24: Adjusted Net Income, Group Share
ADJUSTED NET INCOME, GROUPE SHARE (in €m) 2016 2017 Net income from continuing operations, Group share 786 (531) Restatement for non-recurring income and expenses (before tax) 372 1,310 Restatement for exceptional items in net financial expenses 30 21 Tax impact(1) -179 (8) Restatement on share of i
Slide 25: Earnings per Share
EARNINGS PER SHARE (€ per share) 2016 2017 Net income from continuing operations 1.06 (0.70) Net income from discontinued operations -0.05 0 Net income, Group share 1.01 (0.70) Adjusted net income, Group share 1.39 1.02 Weighted average number of shares pre-dilution (in millions) (1) 739.2 757.0 Not
Slide 26: 2017 Capex of €2.1bn (ex Cargo)
2017 Capex of €2.1bn (ex Cargo) BREAKDOWN OF CAPEX BREAKDOWN OF CAPEX BY NATURE BY REGION €2,145m (ex Cargo) 8% 21% 20% 38% 24% 2017 investments moving towards the normative level 27% 32% of €2.0bn(1) 30% Remodeling Maintenance France Europe Latin Expansion IT & omnichannel Asia America (1) As annou
Slide 27: Significant Decrease in Net Debt
SIGNIFICANT DECREASE IN NET DEBT (in €m) 2016 2017 Opening net debt (December 31) -4 546 -4 531 Free cash flow 603 503 Acquisitions -190 -259 Disposals 45 14 Others -25 -46 Discontinued operations 16 3 Cash flow after acquisitions and disposals 449 215 Dividends paid by parent company -121 -151 Divi
Slide 28: Stores under Banners at End 2017
STORES UNDER BANNERS1 AT END 2017 Hypermarkets Supermarkets Convenience Cash & Carry Total France 247 1,060 4,267 144 5,718 Spain 203 136 654 993 Italy 54 410 591 13 1,068 Belgium 45 445 296 786 Poland 89 151 656 896 Romania 33 237 53 323 Others 36 406 196 638 Other European countries 460 1,785 2,44