CARREFOUR INVESTOR PRESENTATION. May May

Transcription

1 CARREFOUR May 2017 May

2 Carrefour s Multiformat & Omnichannel model

3 CARREFOUR: THE REFERENCE IN FOOD RETAIL Quality accessible to all Unique knowhow in fresh produce Pioneer in organic food and Quality Lines Powerful exclusive brands Sourcing expertise Food represents 83% of the Group sales in 2016 (growth of over 4% in 2016) May

4 A BALANCED PORTFOLIO Integrated countries Countries in partnership May

5 CONTINUED SALES GROWTH ORGANIC SALES GROWTH EVOLUTION EX PETROL TO 2016 (in %) +3.9% +3.0% +3.0% CAGR % +1.0% +2.3% May

6 A MULTIFORMAT GROUP: EVERYONE UNDER ONE ROOF to First Hypermarket Promodès Atacadão Acceleration in convenience Billa, Dia, Eroski Rue du Commerce May

7 EACH FORMAT HAS A SPECIFIC MISSION 51% Sales 25% Sales 10% Sales 13% Sales 1% Sales Hypermarkets Supermarkets Convenience Cash & Carry E-commerce Everything under one roof at a competitive price Choice close to home with a focus on fresh Essential daily needs with extended shopping hours Wholesale prices for a no-frills experience The broadest assortment at any time, any place on any device May

8 MULTIFORMAT PROGRESSIVELY ROLLED OUT IN ALL OUR COUNTRIES FRANCE SPAIN ITALY BELGIUM POLAND ROMANIA ARGENTINA BRAZIL CHINA TAIWAN Hypermarket Supermarket Convenience Cash & Carry eservice Other services: Travel, leisure, ticketing, car rental May

9 MULTIFORMAT: A PROVEN TRACK RECORD IN REVENUE UPLIFT MULTIFORMAT CLIENTS SPEND MORE Hypermarkets 1.0x 1.9x 1.1x Supermarkets Italy multiformat store network: 57 Hypermarkets 416 Supermarkets 588 Convenience 13 Cash & Carry 2.5x 1.8x 1.7x A multi-format customer is more loyal to Carrefour 1.0x 30% of customers are multi-format Multiple bases on the average annual spend of Carrefour loyaltycard holders (base 1x on hypermarkets) Convenience May

10 CARREFOUR S CENTER OF GRAVITY IS SHIFTING TOWARDS MULTIFORMAT BREAKDOWN OF STORES UNDER BANNERS BY FORMAT GROSS SALES BREAKDOWN (%) 9,995 stores ,935 stores 305 1,328 14,500 stores ,700 Evolution 2012 vs. 2019e +100% +6% +24% 42% 49% >50% 1,366 3,227 2,986 5,479 7,075 9, % 58% 51% <50% e e Hypermarkets Other formats Convenience Supermarkets Hypermarkets Cash & Carry May

11 E-COMMERCE, AN ADDITIONAL FORMAT AND A COMPLEMENTARY SERVICE HYPERMARKETS SUPERMARKETS CASH & CARRY CONVENIENCE E-COMMERCE May

12 RAPID ROLLOUT OF E-COMMERCE THROUGHOUT THE GROUP FRANCE SPAIN ITALY BELGIUM POLAND ROMANIA ARGENTINA BRAZIL CHINA TAIWAN FOOD Home delivery and/or Click & Collect In progress 2017 Direct offer ( ) ( ) ( ) NON- FOOD Marketplace In progress In progress In progress In progress Under study In progress Under study May

13 2020 E-COMMERCE PROSPECTS GROSS MERCHANDISE VOLUME 1.2bn in bn 2020 target Target x3 May

14 STORE BASED OMNICHANNEL MODEL: UNIQUE OPPORTUNITY TO ENSURE E-COMMERCE SUSTAINABILITY OPERATIONAL MODEL FOR ORDER MANAGEMENT CONSUMER CHOICES FOR ORDER COLLECTION Store-picking across formats (hypermarkets, supermarkets, convenience) Mixed model: store + dedicated picking space Warehouse or dark store (with or without automation) E-Commerce Home delivery Click & collect in store Pick-up points (lockers etc.) May

15 CARREFOUR S OMNICHANNEL TRANSFORMATION APPROACH Each country adapts the framework to its market conditions on the basis of key pillars ecommerce Technology Big Data IoT API, agile Digital marketing Omnichannel Supply Chain Data, CRM, Hypercustomization HR & cultural transformation

16 BENEFITS OF OMNICHANNEL FOR CARREFOUR Own the customer in our ecosystem Increase in expenditure and frequency of existing customers (Re)Gain customers Rejuvenate customer base May

17 Hypermarkets OMNICHANNEL ALLOWS CARREFOUR TO BETTER MEET CUSTOMER NEEDS Convenience (services) CLIENT FOR LIFE LONG-TERM LOYALTY THROUGHOUT CLIENT S LIFE THANKS TO MULTIFORMAT Convenience & E-commerce Hypermarket/ Drive Supermarket/ Click & collect May

18 CARREFOUR S VAST ECOSYSTEM FAVORS CUSTOMER OWNERSHIP Wherever you want Whenever you want 24 hours 7 days Fresh food Gourmet However you want Organic Game & Sports TV Sound Photo Technology Wine cellar Baby Textile Appliance... Whatever you want May

19 OMNICHANNEL REINFORCES MULTIFORMAT +20% +10% A CLIENT WHO ADOPTS DRIVE OR CLICK & COLLECT SPENDS MORE Hypermarket Hypermarket + Drive Hypermarket Hypermarket + Click & Collect Source : 2016 study based on a panel in France and Spain May

20 OMNICHANNEL REJUVENATES CUSTOMER BASE AVERAGE AGE OF CARREFOUR CUSTOMERS BY FORMAT ( ) Index 100 = average age of Carrefour Hypermarket customers in ,1 104,5 107,7 108,9 109,3 105,3 Carrefour Market 100,0 101,4 102,5 103,3 103,5 100,4 Carrefour Hypermarket 88,4 85,4 84,7 84,4 84,4 84,5 Carrefour online Grocery 82,6 81,7 81,6 Carrefour online Non-Food May

21 OUR GOAL: DEVELOP THE CARREFOUR REFLEX Carrefour is the leading physical retailer in France. We are building a major market position in E-commerce leveraging a unique store network. May

22 A COHERENT AND COMPLETE ECOSYSTEM OF WEBSITES AN ONLINE FOOD OFFER ACCESSIBLE TO ALL A NON-FOOD PLATFORM INCLUDING A MARKETPLACE DEDICATED WEBSITES FOR SERVICES Carrefour brand SPECIALIZED WEBSITES CONNECTED TO THE CARREFOUR ECOSYSTEM HOME DELIVERY CLICK AND COLLECT All the websites centralized through the carrefour.fr portal May

23 FOOD ONLINE IS NOT ONE SIZE FITS ALL A broad Food e-commerce offer at HOME DELIVERY MODEL Delivery D+1 or D+2 Extra Large assortment Hypermarket as a warehouse Supermarket as a warehouse Launched in 1999 Serves Paris, Lyon, Marseille, Nice ~15,000 SKUs A 1h-delivery service for additional last-minute shopping, Launched in 2016 in Paris and its suburbs New cities to come 1-hour or same-day delivery Large assortment + Last mile through start-up partners CLICK AND COLLECT 578 Drives in France ~15,000 SKUs 4.5m orders per year +25% rev. growth in 2016 May

24 OMNICHANNEL APPROACH TO LEVERAGE NON FOOD A SINGLE NON FOOD MULTISPECIALIST PLATFORM Store STORE TO WEB: In store tablets available to the salesforce WEB TO STORE: Upload store assortment online 750 marketplace merchants OBJECTIVE: 100% of the full offer available in any Carrefour store CLICK & COLLECT CLICK & COLLECT 2 hours 3M 6,000 SKUs pick-up points and client touchpoints Web 400K additional Carrefour clients thanks to Click & Collect May

25 DEVELOPMENT OF OUR OFFER ON STRONG POTENTIAL CATEGORIES AND SERVICES ONLINE FRENCH MARKET FORECAST (2020) CARREFOUR SALES EVOLUTION (2016) OTHER KPIS Wine m +250% 340,000 visits/month 530 SKUs Organic > 1bn +50% 600,000 visits/month 20,000 SKUs Pet food m +30% 150,000 visits/month 5,000 SKUs Object customisation > 1bn +200% 200,000 visits/month 300 SKUs May

26 DATA OPENS NEW OPPORTUNITIES FOR CARREFOUR Carrefour is well underway to achieve new level of insights and exploit data commercially and operationally. May

27 DATA IS A 3-STAGE ROCKET Big Data and data science Leverage technology to grow revenue Leverage small data Small data is in play to enrich customer value-proposition and convey adequate messages. Gather relevant data Carrefour is already a data-centric organization gathering relevant customer and operational data May

28 CARREFOUR IS A DATA-DEEP COMPANY CARREFOUR CARREFOUR SOCIAL LOYALTY CARD CREDIT CARD PAYMENT NETWORKS WEBSITES MOBILE APPS 55 million households 6.5 million holders 13m daily transactions 14.4m fans / followers 1.3m daily visitors 8.2m downloads May

29 CUSTOMER DATA STRATEGY ENABLES REVENUE GROWTH Type of Customer Carrefour customers Loyalty cardholder Carrefour customers Not cardholders Not Carrefour customers PASS cardholder Strategy Increase share of wallet Enroll in loyalty program Bring to Carrefour Type of Data Known Client data Anonymous data Media: owned Web (logged) App CAC Media: owned & 3rd party Display RRSS Search Web (no log) May

30 SUPPLY CHAIN: LEVERAGE TRANSFORMATION TO IMPROVE OPERATING EFFICIENCY Our supply chain is evolving to support multiformat deployment and industrialize omnichannel processes. May

31 OUR SUPPLY CHAIN IS EVOLVING TO SUPPORT CARREFOUR S TRANSFORMATION 2 MAIN STRATEGIC GOALS TO SUPPORT GROUP S TRANSFORMATION Support multiformat deployment Industrialize omnichannel processes Leverage transformation to improve operating efficiency May

32 FRANCE: A MORE EFFICIENT MULTIFORMAT SUPPLY CHAIN THANKS TO CARAVELLE in 2012 in 2018 Reduced number of warehouses in France 67-18% CARAVELLE TARGETS* Reinforced network of multiformat warehouses 13 x3 34 Number of Km -20% Number of SKUs +15% Number of delivered stores +50% 4,000 6,000 Cost of package -5% Product availability +2% *2018 target vs 2012 May

33 FRANCE: CARAVELLE ENHANCES OPERATING EFFICIENCY 2013 / % 10% 25% 10% 25% 350m savings between end-2012 and end % of savings delivered as of end % of savings to be delivered in 2017 and 2018 May

34 CHINA: INTEGRATION OF SUPPLY CHAIN SUPPORTING MULTIFORMAT ROLL-OUT (2/2) INTEGRATION AND OPTIMIZATION OF LOGISTICS BEIJING/TIANJIN DC 40 stores December 2015 % of goods supplied by our distribution centers: 2017 target: 80% WUHAN DC 35 stores October 2015 CHENGDU DC 42 stores May 2015 SHENYANG DC 30 stores July 2016 KUNSHAN DC 60 stores July 2014 GUANGZHOU DC 31 stores May 2016 Increase in assortment: in small- and mid-sized cities starting in % Development of convenience and E-commerce formats May

35 CARREFOUR TESTS AND OPERATES MULTIPLE FULFILLMENT MODELS ACROSS MARKETS # OF DAILY ORDERS In-store picking In-store picking geographically concentrated Mixed model: dedicated storage space adjacent to the store Dark store: dedicated warehouse, manual picking Partly-automated warehouse (conveyers) Future models? EFFICIENCY Starting point all Carrefour countries Carrefour Spain Carrefour Spain & Taiwan Carrefour France (Ooshop) Carrefour France (PPC) TBD Leverage store warehouses to prepare individual orders Gradually rolled out in other markets Partly automated warehouse to prepare individual Drive orders May

36 Financials

37 2016 KEY FIGURES NET SALES EBITDA MARGIN (2) RECURRING OPERATING INCOME ADJUSTED NET INCOME, GROUP SHARE FREE CASH FLOW 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 constant exchange rates (2) EBITDA: Recurring operating income before depreciation and amortization (including supply chain depreciation) May

38 ORGANIC GROWTH OF 3.0% IN SALES EVOLUTION (in m and %) 76.9 bn +3.0% 0.0% +3.0% 79.2 bn -0.5% +0.2% +2.7% % bn -3.1% 76.6 bn 2015 net sales LFL ex petrol ex calendar Scope effect organic net sales ex petrol ex calendar Petrol & calendar effect Acquisitions/ disposals 2016 net sales at constant exch. rates Currencies impact 2016 net sales (1) Scope effect includes store openings/closings and temporary store closures May

39 GROSS MARGIN FROM RECURRING OPERATIONS HELD UP WELL GROSS MARGIN FROM RECURRING OPERATIONS +3.5% at constant exch. rates , (in m) 18,019 GROSS MARGIN FROM RECURRING OPERATIONS +10bp % 2015 (as a % of net sales) 23.4% May

40 GOOD CONTROL OF OPERATING COSTS OPERATING COSTS +4.9% at constant exch. rates ,125 (in m) ,070 OPERATING COSTS +10bp % (as a % of net sales, ex. petrol) % May

41 STABLE ASSET COSTS AS A PERCENTAGE OF SALES ASSET COSTS +2.8% at constant exch. rates ,509 (in m) ,505 ASSET COSTS Stable % (as a % of net sales, ex. petrol) % May

42 2016 NET SALES AND RECURRING OPERATING INCOME BY REGION NET SALES RECURRING OPERATING INCOME (in m) Organic growth ex petrol ex calendar Variation at current exch. rates Variation at constant exch. rates Variation at current exch. rates France 36,272 35, % -1.1% 1,191 1, % -13.4% Other European countries 19,724 20, % +1.8% % +25.5% Europe 55,996 55, % -0.1% 1,758 1, % -0.9% Latin America 14,290 14, % +1.5% % +0.9% Asia 6,659 6, % -7.3% n/a n/a Emerging markets 20,949 20, % -1.3% % -9.0% Global functions n/a n/a TOTAL 76,945 76, % -0.4% 2,445 2, % -3.8% May

43 ADJUSTED NET INCOME, GROUP SHARE (in m) EBITDA (1) 3,955 3,886 (in m) Net income from continuing operations 1, Recurring operating income 2,445 2,351 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 2,232 1,943 Net financial expenses Net interest expense Other net financial expenses Net income from discontinued operations, Group share 4-40 Net income, Group share Adjusted net income, Group share 1,113 1,031 Income before taxes 1,717 1,428 Income tax expense Effective tax rate 34.8% 34.6% Notes : (1) Recurring operating income before depreciation and amortization (including supply chain depreciation) May

44 2016 FREE CASH FLOW (in m) Gross cash flow 2,733 2,964 Change in working capital Discontinued activities 3-11 Operating cash flow 2,818 3,305 Capital expenditure (ex. Cargo) -2,378-2,492 Net capital expenditure (Cargo) Change in net payables to fixed asset suppliers Asset disposals (business-related) Discontued operations 7 - Free cash flow Impact of Cargo Impact of exceptional items Free cash flow from continuing operations, excluding exceptional items 951 1,039 May

45 THE LOWER CAPITAL INTENSITY OF GROWTH WILL HELP RETURN ON CAPITAL HYPERMARKETS SUPERMARKETS CONVENIENCE CASH & CARRY E-COMMERCE Number of stores 1,328 3,227 7, n.a % food in sales 70% 85% 95% c100% 55% Capex (by unit) Expansion outlook = Expansion capex per sqm (1) n.a 2014/2016 Trend n.a (1) Includes real estate High volumes, benefitting all formats Strong cash flow, financing multiformat expansion May

46 2016 CAPEX BREAKDOWN 2016 CAPEX BREAKDOWN OF CAPEX BY NATURE BREAKDOWN OF CAPEX BY REGION 2,492m (ex Cargo) 21% 18% 32% 29% 21% 25% 7% 6% 41% Remodelling Maintenance France DIA Europe Expansion IT & omnichannel Latin America Asia May

47 CAPEX EVOLUTION REFLECTS CARREFOUR S MULTIFORMAT TRANSFORMATION HISTORICAL CAPEX SPLIT BY FORMAT MEDIUM-TERM TRENDS IN CAPEX (GROUP LEVEL) Remodeling Maintenance 48% 64% >60% Expansion in smaller formats E-commerce roll out Expansion IT & Omnichannel 52% 36% <40% e Hypermarket remodeling phase largely behind us Store maintenance key traffic driver 2017 CAPEX 2.4bn NORMATIVE CAPEX 2.3bn 2.5bn Hypermarkets Other formats May

48 SLIGHT DROP IN NET DEBT (in m) Opening net debt (December 31) -4, Free cash flow Acquisitions Disposals Others Discontinued operations 0 16 Cash flow after acquisitions and disposals Dividends paid by parent company Dividends paid to non-controlling interests Capital increase Cost of net financial debt Disposal of treasury shares Acquisitions/disposals of investments without change in control Other changes in net borrowings Closing net debt (December 31) -4,546-4,531 May

49 CREDIT RATING AND DEBT MATURITY MAINTAINED DEBT REDEMPTION SCHEDULE (in %) 2.44% 5.25% 1.75% 4.00% 3.88% 1.75% 0.75% 1.25% On April 26, 2016, issua issuance of a 750m bond with a maturity of 8 years and a 0.75% coupon 1,250 1,000 1,000 1,000 1, In 2016, 667m of bonds reached maturity 279 At end 2016, the debt maturity was 4.1 years Credit rating maintainted: BBB issuance Average annual coupon May

50 STABLE PROPOSED DIVIDEND: 0.70 PER SHARE Dividend of 0,70 proposed to the General Shareholders meeting on June 15, 2017 Payout of 51% of adjusted net income, Group share, in line with our distribution policy Payment in shares or in cash May

51 VALUE-CREATION DRIVERS Solid generation of operating cash flow linked to improved results Disciplined Capex between 2.3bn and 2.5bn per year ( 2.4bn in 2017), with strict Return on Investment criteria and an evolution in the mix Control of Working Capital Requirements Balanced capital allocation, combining continued targeted acquisitions, 45-50% payout *, maintaining a BBB+ rating *of the adjusted net income, Group share May

52 FINANCIAL OUTLOOK 2017 & MEDIUM-TERM Total sales growth of 3% to 5% at constant exchange rates in 2017 Planned IPOs of Carmila and Brazilian operations in 2017, market conditions permitting Continued increase in Free Cash Flow, with a new increase in 2017 Capex decrease in 2017 to 2.4bn, and normative capex between 2.3bn and 2.5bn Continued tactical acquisitions Payout of between 45% and 50% of adjusted net income, Group share May

53 Appendix

54 VARIATION OF Q SALES (INCLUDING VAT) Total sales inc. VAT ( m) Change at current exchange rates inc. petrol Change at constant exchange rates inc. petrol LFL inc. petrol LFL ex petrol ex calendar Organic growth ex petrol ex calendar France 9, % +0.8% +2.1% +0.5% -0.6% Hypermarkets 4, % -0.8% -0.4% -1.6% -2.0% Supermarkets 3, % +1.1% +3.2% +2.2% +0.2% Convenience /other formats 1, % +5.5% +8.6% +4.4% +2.5% International 11, % +3.6% +0.6% +2.1% +3.9% Other European ountries 5, % +3.6% +0.6% +0.9% +1.3% Spain 2, % +4.3% +0.6% +0.3% +0.8% Italy 1, % -0.4% +1.2% +1.6% 0.0% Belgium 1, % -2.7% -2.3% -1.8% -2.1% Latin America 4, % +8.8% +5.0% +7.8% +11.7% Brazil 3, % +7.4% +2.8% +5.6% +10.5% Asia 1, % -5.0% -6.7% -4.0% -2.3% China 1, % -7.0% -8.4% -5.5% -4.1% Group total 21, % +2.3% +1.3% +1.4% +1.9% May

55 Q TAKEAWAYS Continued momentum, with strong LFL and overall sales growth in Q1: Solid sales growth in Q1 LFL sales growth in France, solid performance of smaller formats Further growth in Europe on the back of strong comparables Continued strong sales growth in Latin America despite slowdown in inflation and a persistently difficult economic environment Sequential improvement in Asia, continued growth in Taiwan Target of 3% to 5% FY2017 sales growth at constant exchange rates confirmed Building on our key strengths : Relevance of our food-based model Balanced country portfolio Multi-format and omnichannel approach Carrefour Q sales l Page 55 May

56 HYPERMARKETS EVERYTHING UNDER ONE ROOF AT A COMPETITIVE PRICE Carrefour s historical format HYPERMARKETS New hypermarket concepts tested in all geographies Renewed offer attractive and powerful Gradually becoming more urban, as cities expand 100,000 SKUs 51 Average basket (France) 1,328 stores 7,345 Average Sqm May

57 SUPERMARKETS CHOICE CLOSE TO HOME WITH A FOCUS ON FRESH Dedicated to food SUPERMARKETS Clusterizing to better address local needs 4 clusters: Gourmet, Attraction, Urban, Discount Successful cross-fertilization across countries 3,227 stores 20,000 Average SKUs 1,319 Average Sqm 28 Average basket (Belgium) May

58 CONVENIENCE ESSENTIAL DAILY NEEDS WITH EXTENDED SHOPPING HOURS CONVENIENCE Format in constant evolution, adapting to changing social and consumption trends On top of generalist stores, multiple tests of specialized convenience concepts across countries (organic stores, etc.) Last 2 countries to launch convenience format: Brazil and China, well received by consumers 7,075 stores 6,500 Average SKUs 255 Average Sqm 12 Average basket (Italy) May

59 CASH & CARRY WHOLESALE PRICES FOR A NO-FRILLS EXPERIENCE CASH & CARRY B2B pure play activities in France (Promocash) and Italy (Docks and Gross Iper) Hybrid B2B/B2C: Atacadão is a winning model in Brazil Successful cross-fertilization based on Atacadão in other countries: Maxi in Argentina and initial Supeco in Spain 305 stores 8,000 Average SKUs 4,121 Average Sqm 59 Average basket (Atacadão) May

60 2016 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 40, % -1.2% -0.5% -0.1% +0.3% -0.9% Hypermarkets 20, % -2.6% -1.7% -2.3% -1.5% -1.8% Supermarkets 12, % -0.9% +1.9% +0.4% +2.6% -0.3% Others, inc. convenience 6, % +3.2% -1.2% +7.9% +1.8% +0.8% International 45, % +6.1% +6.3% +4.8% +4.9% +6.0% Other European countries 22, % +1.9% +2.3% +1.6% +2.0% +1.8% Spain 8, % +1.2% +2.1% +1.3% +2.3% +2.2% Italy 5, % -1.0% -0.6% +1.8% +2.1% +0.9% Belgium 4, % +0.6% +0.6% +0.5% +0.3% +0.3% Latin America 16, % +16.6% +16.8% +13.4% +13.5% +16.7% Brazil 12, % +15.0% +15.1% +10.9% +11.0% +15.1% Asia 6, % -4.1% -4.1% -4.8% -5.0% -4.3% China 5, % -7.2% -7.2% -7.6% -7.8% -7.4% Group total 85, % +2.7% +3.3% +2.6% +3.0% +3.0% May

61 STORES UNDER BANNERS 1 AT END 2016 (#) Hypermarkets Supermarkets Convenience Cash & Carry Total France 243 1,062 4, ,670 Spain Belgium Italy ,068 Poland Romania Others Other European countries 439 1,777 2, ,541 Argentina Brazil Latin America China Taiwan Others Asia Others (2) Total 1,462 3,227 7, ,935 Notes : (1) including franchisees and partners; (2) Maghreb, Middle East and Dominican Republic May

62 CONTACTS HEAD OF INVESTOR RELATIONS IR DIRECTORS Mathilde RODIE Louis IGONET louis_igonet@carrefour.com Tel: Mob: Anne-Sophie LANAUTE anne-sophie_lanaute@carrefour.com Tel: Mob: