H FINANCIAL RESULTS. August 30,

Transcription

1 August 30,

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 from those in such forward-looking statements as a result of a number of risks and uncertainties, including but not limited to the risks described in the documents filed with the Autorité des Marchés Financiers as part of the regulated information disclosure requirements and available on Carrefour's website ( and in particular the Annual Report (Document de Référence). These documents are also available in the English language on the company's website. Investors may obtain a copy of these documents from Carrefour free of charge. Carrefour does not assume any obligation to update or revise any of these forward-looking statements in the future. August 30,

3 H FINANCIAL RESULTS 01 August 30,

4 H 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 621m (-7% and -21.5% at constant exchange rates) Lower profitability in France, in a tough competitive context Pause in profitability improvement in other European countries, notably due to the integration of stores Continued margin growth in Brazilian retail activities; tough economic conditions in Argentina Positive contribution from Asia, reflecting cost reductions in China and solid performance in Taïwan Free cash flow excluding Cargo and exceptional items of - 2,587m Successful completion of IPO in Brazil and capital increase by Carmila August 30,

5 Solid 6.2% growth in H H SALES EVOLUTION (in m and %) 36.3 bn +2.1% +0.5% +2.6% 37.2 bn -0.6% +0.9% +2.8% 37.3 bn +2.8% +0.5% +6.2% 38.5 bn H Net Sales LFL ex petrol ex calendar Store openings/ closures H organic ex petrol ex calendar Calendar Acquisitions/ disposals H at constant exch. rates ex petrol FX Petrol 2017 Net Sales August 30,

6 Sales continue their growth trend ORGANIC SALES GROWTH EVOLUTION EX PETROL TO H (in %) +3.0% +2.6% CAGR 2012 H % +2.6% +3.9% +1.0% +2.3% H1 H August 30,

7 Resilient gross margin from recurring operations GROSS MARGIN FROM RECURRING OPERATIONS +1.9% at constant exch. rates , (in m) 8,432 GROSS MARGIN FROM RECURRING OPERATIONS -34bp % 2016 (as a % of net sales) 23.2% August 30,

8 Solid control of operating costs OPERATING COSTS +3.7% at constant exch. rates ,879 (in m) ,500 OPERATING COSTS -6bp % (as a % of net sales) % August 30,

9 Slight rise in asset costs reflecting investments ASSET COSTS +6.4% at constant exch. rates ,351 (in m) ,248 ASSET COSTS +7bp % (as a % of net sales) % August 30,

10 France: Margin reflecting a highly competitive environment (in m) H H change % Net sales 17,179 17, % LFL ex petrol, ex calendar +1.3% ROI % ROI margin 1.8% 1.2% -70bp August 30,

11 Other European countries: Strong rise in sales and resilient margin (in m) H H % change at current FX % change at constant FX Net sales 9,428 10, % +6.0% LFL ex petrol, ex calendar +2.2% ROI % -3.7% ROI margin 1.6% 1.5% -10bp August 30,

12 Latin America: Strong sales growth; robust performance in Brazil, tough context in Argentina (in m) H H % change at current FX % change at constant FX Net sales 6,453 8, % +9.4% LFL ex petrol, ex calendar +7.3% ROI % -15.5% ROI margin 4.2% 3.6% -60bp August 30,

13 Asia: Return to improved profitability (in m) H H % change at current FX % change at constant FX Net sales 3,229 3, % -4.3% LFL ex petrol, ex calendar -4.3% ROI n.a. n.a. ROI margin -0.2% 0.4% +60bp August 30,

14 ADJUSTED NET INCOME, GROUP SHARE (in m) H1 H (in m) H1 H EBITDA (1) 1,448 1,431 Net income from continuing operations Recurring operating income Net income from associates and JVs Non-recurring income Minority share of net income from continuing operations Net income from continuing operations, Group share EBIT Net financial expenses Net interest expense Other net financial expenses Net income from discontinued operations, Group share Net income, Group share Adjusted net income, Group share Income before taxes Income tax expense Effective tax rate 31.3% 37.5% Notes : (1) Recurring operating income before depreciation and amortization (including supply chain depreciation) August 30,

15 H CAPEX: Investments under control H CAPEX BREAKDOWN OF CAPEX BY NATURE BREAKDOWN OF CAPEX BY REGION 20% 22% 5% 904m (ex Cargo) 29% 29% 29% 25% 39% 2% Remodeling Maintenance France DIA Europe Expansion IT & omnichannel Latin America Asia August 30,

16 H FREE CASH FLOW (in m) H H Gross cash flow 1, Change in working capital -2,052-2,517 Discontinued activities Operating cash flow ,541 Capital expenditure (ex. Cargo) Net capital expenditure (Cargo) Change in net payables to fixed asset suppliers Asset disposals (business-related) Discontinued operations - - Free cash flow -2,259-2,736 Impact of Cargo Impact of exceptional items Free cash flow from continuing operations, excluding exceptional items -2,106-2,587 August 30,

17 H NET DEBT (in m) H H Opening net debt (December 31) -4,546-4,531 Free cash flow -2,259-2,736 Acquisitions Disposals 7 11 Others Discontinued operations 5 1 Cash flow after acquisitions and disposals -2,363-2,929 Dividends paid by parent company Dividends paid to non-controlling interests Capital increase Cost of net financial debt Disposal of treasury shares -4-2 Acquisitions/disposals of investments without change in control Other changes in net borrowings Closing net debt (June 30) -7,367-7,720 August 30,

18 STRONG TAKE-UP FOR DIVIDEND PAID IN SHARES TAKE-UP RATIO FOR DIVIDEND PAID IN SHARES (in %) Take-up ratio of 71.3% in % 72.1% 64.6% 76.3% 71.3% Cash dividend paid in H versus in H1 in % Dividend ( per share) Supplementary resources for the company (in m) August 30,

19 CREDIT RATING AND DEBT MATURITY MAINTAINED DEBT REDEMPTION SCHEDULE (in m and %) 1.88% 5.25% 1.75% 4.00% 3.88% 1.75% 0.00% 0.75% 1.25% On June 14 th, 2017, issuance of $500mn non-dilutive 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 1, During H1 2017, 250mn of bonds reached maturity At end June 2017, debt maturity stood at 3.9 years Credit rating maintained: BBB issuance Average annual coupon August 30,

20 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 line with evolution recorded in H Financial discipline strengthened Capex reaching between 2.2bn and 2.3bn for FY 2017 (excluding Cargo Property), vs. initial forecast of 2.4bn. Continued efforts to maintain 2017 free cash flow at the same level as in 2016 Carrefour s new management team is fully focused on improving the Group s performance and adapting to the rapid and far-reaching evolutions within the industry. Management will come back to the market by the end of the year. August 30,

21 Q&A August 30,

22 APPENDIX August 30,

23 H INCOME STATEMENT (in m) H H 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 operating income before D&A (EBITDA) (1) 1,448 1,431 Depreciation and amortization Recurring operating income (ROI) Recurring operating income (ROI) including income from associates and joint ventures Non recurring income and expenses EBIT Financial expense Income tax expense Minority interests Net income from continuing operations, Group share Net income from discontinued operations, Group share Net income, Group share Adjusted net income, Group share Note : (1) Recurring operating income before depreciation and amortization (including supply chain depreciation) APPENDIX August 30,

24 Net sales and recurring operating income per region NET SALES RECURRING OPERATING INCOME (in m) H H Variation at constant exch. rates Variation at current exch. rates H H Variation at constant exch. rates Variation at current exch. rates France 17,179 17, % +0.7% % -36.1% Other European countries 9,428 10, % +6.2% % -3.9% Europe 26,607 27, % +2.7% % -25.4% Latin America 6,453 8, % +25.1% % +7.5% Asia 3,229 3, % -2.9% n/a n/a Emerging markets 9,682 11, % +15.8% % +15.1% Global functions n.a. n.a. TOTAL 36,289 38, % +6.2% % -12.1% APPENDIX August 30,

25 ADJUSTED NET INCOME, GROUPE SHARE (in m) H H Net income from continuing operations, Group share Restatement for non-recurring income and expenses (before tax) Restatement for exceptional items in net financial expenses 7 17 Tax impact (1) Restatement on share of income from minorities and companies consolidated by the equity method 4-6 Adjusted net income, Group share Note : (1) Tax impact of restated items (from non-recurring income and expenses and financial expenses) and non-recurring tax items APPENDIX August 30,

26 EARNINGS PER SHARE ( per share) H H Net income from continuing operations Net income from discontinued operations Net income, Group share Adjusted net income, Group share Weighted average number of shares pre-dilution (in millions) (1) Note : (1) Non significant dilutive impact in 2016 APPENDIX August 30,

27 STORES UNDER BANNERS 1 AT END H (#) Hypermarkets Supermarkets Convenience Cash & Carry Total France 247 1,059 4, ,686 Spain Italy ,065 Belgium Poland Romania Others Other European countries 458 1,753 2, ,602 Argentina Brazil Latin America China Taiwan Others Asia Others (2) Total 1,507 3,194 7, ,052 Notes : (1) including franchisees and partners; (2) Maghreb, Middle East and Dominican Republic APPENDIX August 30,

28 H GROSS SALES Gross sales (in m) Change at current exch. rates inc. petrol Change at constant exch. rates inc. petrol Change at constant exch. rates ex. petrol LFL inc. petrol LFL ex. petrol ex. calendar Organic growth ex. petrol ex. calendar France 19, % +0.8% +2.1% +1.3% +0.1% Hypermarkets 9, % +0.0% +0.6% -0.5% -1.0% Supermarkets 6, % +0.3% +2.5% +2.0% +0.0% Others, inc. convenience 3, % +4.2% +6.1% +5.6% +3.9% International 23, % +5.6% +2.2% +2.8% +4.6% Other European countries 11, % +6.0% +2.2% +2.2% +2.8% Spain 4, % +6.9% +1.6% +1.5% +2.0% Italy 2, % +2.0% +3.2% +2.7% +1.6% Belgium 2, % -0.3% +0.0% +0.3% +0.1% Latin America 9, % +10.0% +6.1% +7.3% +11.3% Brazil 7, % +8.4% +3.7% +5.0% +9.9% Asia 3, % -4.4% -5.8% -4.3% -2.9% China 2, % -6.5% -7.4% -6.0% -5.1% Group total 43, % +3.3% +2.1% +2.1% +2.6% APPENDIX August 30,

29 Q GROSS SALES Gross sales (in m) Change at current exch. rates inc. petrol Change at constant exch. rates inc. petrol Change at constant exch. rates ex. petrol LFL inc. petrol LFL ex. petrol ex. calendar Organic growth ex. petrol ex. calendar France 9, % +0.8% +2.0% +1.9% +0.7% Hypermarkets 5, % +0.8% +1.5% +0.5% -0.1% Supermarkets 3, % -0.3% +1.8% +1.9% -0.2% Others, inc. convenience 1, % +3.1% +3.9% +6.7% +5.1% International 11, % +7.6% +3.8% +3.4% +5.4% Other European countries 5, % +8.4% +3.7% +3.4% +4.2% Spain 2, % +9.4% +2.5% +2.6% +3.1% Italy 1, % +4.3% +5.1% +3.9% +3.1% Belgium 1, % +2.2% +2.2% +2.4% +2.3% Latin America 4, % +11.1% +7.2% +6.9% +10.9% Brazil 3, % +9.5% +4.8% +4.5% +9.4% Asia 1, % -3.5% -4.5% -4.7% -3.7% China 1, % -5.9% -6.2% -6.6% -6.4% Group total 21, % +4.4% +3.0% +2.8% +3.3% APPENDIX August 30,