August 30, 2017 1
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 (www.carrefour.com), 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, 2017 2
H1 2017 FINANCIAL RESULTS 01 August 30, 2017 3
H1 2017 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, 2017 4
Solid 6.2% growth in H1 2017 H1 2017 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 H1 2016 Net Sales LFL ex petrol ex calendar Store openings/ closures H1 2017 organic ex petrol ex calendar Calendar Acquisitions/ disposals H1 2017 at constant exch. rates ex petrol FX Petrol 2017 Net Sales August 30, 2017 5
Sales continue their growth trend ORGANIC SALES GROWTH EVOLUTION EX PETROL - 2012 TO H1 2017 (in %) +3.0% +2.6% CAGR 2012 H1 2017 +3.0% +2.6% +3.9% +1.0% +2.3% 2012 2013 2014 2015 2016 H1 H1 2017 August 30, 2017 6
Resilient gross margin from recurring operations GROSS MARGIN FROM RECURRING OPERATIONS +1.9% at constant exch. rates 2017 8,821 2016 (in m) 8,432 GROSS MARGIN FROM RECURRING OPERATIONS -34bp 2017 22.9 % 2016 (as a % of net sales) 23.2% August 30, 2017 7
Solid control of operating costs OPERATING COSTS +3.7% at constant exch. rates 2017 6,879 (in m) 2016 6,500 OPERATING COSTS -6bp 2017 17.9 % (as a % of net sales) 2016 17.9% August 30, 2017 8
Slight rise in asset costs reflecting investments ASSET COSTS +6.4% at constant exch. rates 2017 1,351 (in m) 2016 1,248 ASSET COSTS +7bp 2017 3.5% (as a % of net sales) 2016 3.4% August 30, 2017 9
France: Margin reflecting a highly competitive environment (in m) H1 2016 H1 2017 change % Net sales 17,179 17,307 +0.7% LFL ex petrol, ex calendar +1.3% ROI 312 199-36.1% ROI margin 1.8% 1.2% -70bp August 30, 2017 10
Other European countries: Strong rise in sales and resilient margin (in m) H1 2016 H1 2017 % change at current FX % change at constant FX Net sales 9,428 10,010 +6.2% +6.0% LFL ex petrol, ex calendar +2.2% ROI 155 149-3.9% -3.7% ROI margin 1.6% 1.5% -10bp August 30, 2017 11
Latin America: Strong sales growth; robust performance in Brazil, tough context in Argentina (in m) H1 2016 H1 2017 % change at current FX % change at constant FX Net sales 6,453 8,075 +25.1% +9.4% LFL ex petrol, ex calendar +7.3% ROI 273 293 +7.5% -15.5% ROI margin 4.2% 3.6% -60bp August 30, 2017 12
Asia: Return to improved profitability (in m) H1 2016 H1 2017 % change at current FX % change at constant FX Net sales 3,229 3,135-2.9% -4.3% LFL ex petrol, ex calendar -4.3% ROI -7 12 n.a. n.a. ROI margin -0.2% 0.4% +60bp August 30, 2017 13
ADJUSTED NET INCOME, GROUP SHARE (in m) H1 H1 2016 2017 (in m) H1 H1 2016 2017 EBITDA (1) 1,448 1,431 Net income from continuing operations 222 148 Recurring operating income 706 621 Net income from associates and JVs -21 13 Non-recurring income -114-150 Minority share of net income from continuing operations Net income from continuing operations, Group share -65-69 158 79 EBIT 572 484 Net financial expenses -248-247 Net interest expense -181-191 Other net financial expenses -68-56 Net income from discontinued operations, Group share -28-1 Net income, Group share 129 78 Adjusted net income, Group share 235 154 Income before taxes 324 236 Income tax expense -101-89 Effective tax rate 31.3% 37.5% Notes : (1) Recurring operating income before depreciation and amortization (including supply chain depreciation) August 30, 2017 14
H1 2017 CAPEX: Investments under control H1 2017 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, 2017 15
H1 2017 FREE CASH FLOW (in m) H1 2016 H1 2017 Gross cash flow 1,088 976 Change in working capital -2,052-2,517 Discontinued activities -11-1 Operating cash flow -975-1,541 Capital expenditure (ex. Cargo) -968-904 Net capital expenditure (Cargo) -74-85 Change in net payables to fixed asset suppliers -310-262 Asset disposals (business-related) 69 56 Discontinued operations - - Free cash flow -2,259-2,736 Impact of Cargo -74-85 Impact of exceptional items -79-63 Free cash flow from continuing operations, excluding exceptional items -2,106-2,587 August 30, 2017 16
H1 2017 NET DEBT (in m) H1 2016 H1 2017 Opening net debt (December 31) -4,546-4,531 Free cash flow -2,259-2,736 Acquisitions -136-143 Disposals 7 11 Others -19-63 Discontinued operations 5 1 Cash flow after acquisitions and disposals -2,363-2,929 Dividends paid by parent company -121 - Dividends paid to non-controlling interests -60-84 Capital increase 140 90 Cost of net financial debt -181-191 Disposal of treasury shares -4-2 Acquisitions/disposals of investments without change in control - -57 Other changes in net borrowings -233-18 Closing net debt (June 30) -7,367-7,720 August 30, 2017 17
STRONG TAKE-UP FOR DIVIDEND PAID IN SHARES TAKE-UP RATIO FOR DIVIDEND PAID IN SHARES (in %) Take-up ratio of 71.3% in 2016 59.7% 72.1% 64.6% 76.3% 71.3% Cash dividend paid in H2 2017 versus in H1 in 2016 20.7% 2011 2012 2013 2014 2015 2016 Dividend ( per share) 0.52 0.58 0.62 0.68 0.70 0.70 Supplementary resources for the company (in m) 211 296 290 102 396 372 August 30, 2017 18
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 1,000 750 750 During H1 2017, 250mn of bonds reached maturity 279 438 At end June 2017, debt maturity stood at 3.9 years 2017 2018 2019 2020 2021 2022 2023 2024 2025 Credit rating maintained: BBB+ 2017 issuance Average annual coupon August 30, 2017 19
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 H1 2017 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, 2017 20
Q&A August 30, 2017 21
APPENDIX August 30, 2017 22
H1 2017 INCOME STATEMENT (in m) H1 2016 H1 2017 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 -720-781 Recurring operating income (ROI) 706 621 Recurring operating income (ROI) including income from associates and joint ventures 686 633 Non recurring income and expenses -114-150 EBIT 572 484 Financial expense -248-247 Income tax expense -101-89 Minority interests -65-69 Net income from continuing operations, Group share 158 79 Net income from discontinued operations, Group share -28-1 Net income, Group share 129 78 Adjusted net income, Group share 235 154 Note : (1) Recurring operating income before depreciation and amortization (including supply chain depreciation) APPENDIX August 30, 2017 23
Net sales and recurring operating income per region NET SALES RECURRING OPERATING INCOME (in m) H1 2016 H1 2017 Variation at constant exch. rates Variation at current exch. rates H1 2016 H1 2017 Variation at constant exch. rates Variation at current exch. rates France 17,179 17,307 +0.7% +0.7% 312 199-36.1% -36.1% Other European countries 9,428 10,010 +6.0% +6.2% 155 149-3.7% -3.9% Europe 26,607 27,317 +2.6% +2.7% 467 348-25.4% -25.4% Latin America 6,453 8,075 +9.4% +25.1% 273 293-15.5% +7.5% Asia 3,229 3,135-4.3% -2.9% -7 12 n/a n/a Emerging markets 9,682 11,209 +4.8% +15.8% 266 306-9.9% +15.1% Global functions -26-33 n.a. n.a. TOTAL 36,289 38,526 +3.2% +6.2% 706 621-21.5% -12.1% APPENDIX August 30, 2017 24
ADJUSTED NET INCOME, GROUPE SHARE (in m) H1 2016 H1 2017 Net income from continuing operations, Group share 158 79 Restatement for non-recurring income and expenses (before tax) 114 150 Restatement for exceptional items in net financial expenses 7 17 Tax impact (1) -48-84 Restatement on share of income from minorities and companies consolidated by the equity method 4-6 Adjusted net income, Group share 235 154 Note : (1) Tax impact of restated items (from non-recurring income and expenses and financial expenses) and non-recurring tax items APPENDIX August 30, 2017 25
EARNINGS PER SHARE ( per share) H1 2016 H1 2017 Net income from continuing operations 0.22 0.10 Net income from discontinued operations -0.04-0.00 Net income, Group share 0.18 0.10 Adjusted net income, Group share 0.32 0.21 Weighted average number of shares pre-dilution (in millions) (1) 731.7 748.3 Note : (1) Non significant dilutive impact in 2016 APPENDIX August 30, 2017 26
STORES UNDER BANNERS 1 AT END H1 2017 (#) Hypermarkets Supermarkets Convenience Cash & Carry Total France 247 1,059 4,237 143 5,686 Spain 200 131 593 924 Italy 55 414 583 13 1,065 Belgium 45 445 290 780 Poland 86 149 662 897 Romania 32 213 54 299 Others 40 401 196 637 Other European countries 458 1,753 2,378 13 4,602 Argentina 97 108 398 603 Brazil 241 41 87 369 Latin America 338 149 485 0 972 China 225 30 255 Taiwan 64 35 99 Others 81 8 2 2 93 Asia 370 43 32 2 447 Others (2) 94 190 48 13 345 Total 1,507 3,194 7,180 171 12,052 Notes : (1) including franchisees and partners; (2) Maghreb, Middle East and Dominican Republic APPENDIX August 30, 2017 27
H1 2017 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 19,348 +0.8% +0.8% +2.1% +1.3% +0.1% Hypermarkets 9,859 +0.0% +0.0% +0.6% -0.5% -1.0% Supermarkets 6,333 +0.3% +0.3% +2.5% +2.0% +0.0% Others, inc. convenience 3,156 +4.2% +4.2% +6.1% +5.6% +3.9% International 23,706 +11.0% +5.6% +2.2% +2.8% +4.6% Other European countries 11,163 +6.1% +6.0% +2.2% +2.2% +2.8% Spain 4,413 +6.9% +6.9% +1.6% +1.5% +2.0% Italy 2,719 +2.0% +2.0% +3.2% +2.7% +1.6% Belgium 2,127-0.3% -0.3% +0.0% +0.3% +0.1% Latin America 9,057 +25.2% +10.0% +6.1% +7.3% +11.3% Brazil 7,305 +30.0% +8.4% +3.7% +5.0% +9.9% Asia 3,485-3.3% -4.4% -5.8% -4.3% -2.9% China 2,482-8.4% -6.5% -7.4% -6.0% -5.1% Group total 43,053 +6.2% +3.3% +2.1% +2.1% +2.6% APPENDIX August 30, 2017 28
Q2 2017 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 9,942 +0.8% +0.8% +2.0% +1.9% +0.7% Hypermarkets 5,012 +0.8% +0.8% +1.5% +0.5% -0.1% Supermarkets 3,280-0.3% -0.3% +1.8% +1.9% -0.2% Others, inc. convenience 1,650 +3.1% +3.1% +3.9% +6.7% +5.1% International 11,817 +11.1% +7.6% +3.8% +3.4% +5.4% Other European countries 5,778 +8.6% +8.4% +3.7% +3.4% +4.2% Spain 2,302 +9.4% +9.4% +2.5% +2.6% +3.1% Italy 1,392 +4.3% +4.3% +5.1% +3.9% +3.1% Belgium 1,101 +2.2% +2.2% +2.2% +2.4% +2.3% Latin America 4,540 +20.0% +11.1% +7.2% +6.9% +10.9% Brazil 3,638 +23.2% +9.5% +4.8% +4.5% +9.4% Asia 1,499-2.3% -3.5% -4.5% -4.7% -3.7% China 1,036-8.0% -5.9% -6.2% -6.6% -6.4% Group total 21,759 +6.1% +4.4% +3.0% +2.8% +3.3% APPENDIX August 30, 2017 29