2016 OVERVIEW AND OUTLOOK 01. March 9,

Transcription

1 March 9,

2 2016 OVERVIEW AND OUTLOOK 01 March 9,

3 Carrefour, the reference in food retail OVERVIEW & OUTLOOK March 9,

4 A balanced portfolio Integrated countries Countries in partnership OVERVIEW & OUTLOOK March 9,

5 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) OVERVIEW & OUTLOOK March 9,

6 CSR is at the heart of Carrefour s know-how Fight wastage Biodiversity Partnerships Food Climate Energy Packaging Waste Agroecology Sustainable fishing Sustainable forestry Beekeeping Diversity SMEs and Producers Nutrition/Health Solidarity Included in the Dow Jones Sustainability Index Europe in 2016 Present in the DJSI Europe, Stoxx Global ESG, FTSE4Good, Ethibel OVERVIEW & OUTLOOK March 9,

7 Carrefour, pioneer in organic products ROLL-OUT OF ORGANIC FOOD AREAS IN STORE DEVELOPMENT OF OFFER ACQUISITION OF GREENWEEZ ORGANIC FOOD SALES IN 2016: +32% 3,000 ORGANIC FOOD SKUs OF WHICH MORE THAN 800 UNDER PRIVATE LABELS PROGRAM TO ACCELERATE ORGANIC FARMING PARTNERSHIPS WITH 300 FARMS BY 2020 LEADING ONLINE ORGANIC FOOD RETAILER OVERVIEW & OUTLOOK March 9,

8 A multiformat Group: Everyone under one roof to First hypermarket Promodès Atacadão Acceleration in convenience Billa, Dia, Eroski Rue du Commerce OVERVIEW & OUTLOOK March 9,

9 The center of gravity is shifting towards convenience 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 OVERVIEW & OUTLOOK March 9,

10 Multiformat accelerates growth EXAMPLES GAIN new clients +20% market share gain in Italy over 2 years CONVERT existing clients to multiformat 1.8x A Carrefour multiformat client spends 1.8x more than an exclusively hypermarket client* *Study on a panel in France in H OVERVIEW & OUTLOOK March 9,

11 E-commerce, an additional format HYPERMARKETS SUPERMARKETS CASH & CARRY CONVENIENCE E-COMMERCE Selected banners OVERVIEW & OUTLOOK March 9,

12 Rapid roll-out of e-commerce ALL COUNTRIES HAVE AN ONLINE OFFER TARGETED ACQUISITIONS FRANCE SPAIN ITALY BELGIUM POLAND ROMANIA ARGENTINA BRAZIL CHINA TAIWAN Food e-commerce in progress in progress Non-food e-commerce in progress Marketplace in progress in progress in progress Click & Collect OVERVIEW & OUTLOOK March 9,

13 2020 e-commerce prospects GROSS MERCHANDISE VOLUME 1.2bn in bn 2020 target Target x OVERVIEW & OUTLOOK March 9,

14 Omnichannel reinforces multiformat Increase in average basket +20% +10% Growth of traffic Gain new clients Hypermarket Hypermarket + Drive Hypermarket Hypermarket + Click & Collect Rejuvenate client base A CLIENT WHO ADOPTS DRIVE OR CLICK & COLLECT SPENDS MORE Source : 2016 study based on a panel in France and Spain OVERVIEW & OUTLOOK March 9,

15 Omnichannel multiplies contacts and enriches data LOYALTY AND MEANS OF PAYMENT ENHANCE CUSTOMER KNOWLEDGE 13 million clients per day 55 million households are loyalty cardholders 6.5 million active PASS cards OVERVIEW & OUTLOOK March 9,

16 Non-food and services dynamized by omnichannel A differentiated assortment Powerful exclusive labels E-commerce: A complementary and additional offer 3 countries have a Marketplace 6 countries by end million SKUs Services rolled out online OVERVIEW & OUTLOOK March 9,

17 Carrefour, a culture of innovation Formats Concepts Experiment Iterate Deploy Products Services OVERVIEW & OUTLOOK March 9,

18 Differentiated formats SUPECO: C&C FORMAT INSPIRED BY ATACADÃO AND ROLLED OUT IN 4 COUNTRIES TO DATE FRANCE: MARKET ST MARCEL ITALIE: CLUSTERIZATION GOURMET URBAN ATTRACTION OVERVIEW & OUTLOOK March 9,

19 Innovative concepts ITALY: TERRE D ITALIA RESTAURANT FRANCE: BULK WALL SPAIN: NEW LAYOUT FOR APPLIANCES FRANCE: ORGANIC FOOD AREA SPAIN: NEW FMCG LAYOUT BELGIUM: BEER CELLAR OVERVIEW & OUTLOOK March 9,

20 Products that make a difference FRESH PRODUCE: REAL KNOW-HOW REFLETS DE FRANCE: 600 SKUs ORGANIC FOOD SALES:+32% IN CARREFOUR BIO SKUs VEGGIE: THE 1 ST VEGETARIAN PRIVATE LABEL «REPACKAGING» OF OWN BRAND TEX: 22% MARKET SHARE IN HYPERS & SUPERS OVERVIEW & OUTLOOK March 9,

21 Services that facilitate daily life FINANCIAL SERVICES FRANCE: LAUNDROMAT IN-STORE POST OFFICE CORNER BELGIUM: BRINGR FRANCE: LIVRAISONEXPRESS.FR OVERVIEW & OUTLOOK March 9,

22 A new collaborative and agile spirit of innovation 2 HACKATHONS in participants 15 projects 6+ incubations France PIKIT Connected object allowing to shop online from home Innovation team dedicated to identifying innovative startups. OptiMiam: Fight against food waste Cargo Creation of a dedicated real estate company for logistics OVERVIEW & OUTLOOK March 9,

23 Operational efficiency is a priority (1/2) EXAMPLE OF CHINA: 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 OVERVIEW & OUTLOOK March 9,

24 Operational efficiency is a priority (2/2) EXAMPLE OF FRANCE: REINFORCED NETWORK OF MULTIFORMAT WAREHOUSES 2018 CARAVELLE TARGETS* From 67 to 55 warehouses in France of which 34 are multiformat Number of Km -20% Cost of package -5% Product availability +2% *2018 targets versus OVERVIEW & OUTLOOK March 9,

25 CSR contributes to operational efficiency Energy Energy consumption reduced by -9.3% in 2016 Reducing wastage Reduce food waste by 50% by 2025 CSR: Doing our job well Training New skills: data scientists, innovation, job training Biodiversity Increase sales of products from Quality Lines and organic farming every year OVERVIEW & OUTLOOK March 9,

26 A model strongly focused on value-creation OVERVIEW & OUTLOOK March 9,

27 Decrease in capex and evolving mix as of 2017 BREAKDOWN OF CAPEX BY NATURE 2016 (ex Cargo) 21% 18% 29% 2.5bn 32% Remodeling Maintenance MEDIUM-TERM TRENDS Remodeling Maintenance Expansion IT & Omnichannel 2017 CAPEX 2.4bn NORMATIVE CAPEX 2.3bn to 2.5bn Expansion IT & Omnichannel 01. PRÉSENTATION DE 01. L ANNÉE 2016 OVERVIEW 2016 & PERSPECTIVES & OUTLOOK March 9 mars 9,

28 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 OVERVIEW & OUTLOOK March 9,

29 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 OVERVIEW & OUTLOOK March 9,

30 2016 FINANCIAL RESULTS 02 March 9,

31 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) 02. FULL-YEAR 2016 RESULTS March 9,

32 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 02. FULL-YEAR 2016 RESULTS March 9,

33 Further sales growth ORGANIC SALES GROWTH EVOLUTION EX PETROL TO 2016 (in %) +3.9% +3.0% +3.0% CAGR % +1.0% +2.3% FULL-YEAR 2016 RESULTS March 9,

34 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% 02. FULL-YEAR 2016 RESULTS March 9,

35 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) % 02. FULL-YEAR 2016 RESULTS March 9,

36 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) % 02. FULL-YEAR 2016 RESULTS March 9,

37 France: ROI reflecting investments to prepare for the future NET SALES 35,877m LFL (1) +0.3% ROI 1,031m MARGIN 2.9% (1) ex. petrol, ex. calendar 02. FULL-YEAR 2016 RESULTS March 9,

38 Other European countries: Strong increase in profitability NET SALES 20,085m LFL (1) +2.0% ROI 712m MARGIN 3.5% +70 bps % at constant exch. rates (1) ex. petrol, ex. calendar 02. FULL-YEAR 2016 RESULTS March 9,

39 Latin America: Continued strong momentum, driven by Brazil NET SALES 14,507m LFL (1) +13.5% ROI 711m MARGIN 4.9% Stable + 3.7% at constant exch. rates (1) ex. petrol, ex. calendar 02. FULL-YEAR 2016 RESULTS March 9,

40 Asia: Continued transformation in China and further growth in Taiwan NET SALES 6,176m LFL (1) -5.0% ROI (58)m MARGIN -0.9% (1) ex. petrol, ex. calendar 02. FULL-YEAR 2016 RESULTS March 9,

41 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) 02. FULL-YEAR 2016 RESULTS March 9,

42 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, FULL-YEAR 2016 RESULTS March 9,

43 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, FULL-YEAR 2016 RESULTS March 9,

44 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 02. FULL-YEAR 2016 RESULTS March 9, 9,

45 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 02. FULL-YEAR 2016 RESULTS March 9,

46 APPENDIX March 9,

47 2016 income statement (in m) Net sales 76,945 76,645 Net sales, net of loyalty program costs 76,393 76,054 Other revenue 2,464 2,720 Total revenue 78,857 78,774 Cost of good sold -60,838-60,789 Gross margin from recurring operations 18,019 17,985 SG&A -14,105-14,147 Recurring operating income before D&A (EBITDA) (1) 3,955 3,886 Depreciation and amortization -1,470-1,487 Recurring operating income (ROI) 2,445 2,351 Recurring operating income (ROI) including income from associates and joint ventures 2,489 2,315 Non recurring income and expenses EBIT 2,232 1,943 Financial expense Income tax expense Minority interests Net income from continuing operations, Group share Net income from discontinued operations, Group share 4-40 Net income, Group share Adjusted net income, Group share 1,113 1,031 Note : (1) Recurring operating income before depreciation and amortization (including supply chain depreciation) APPENDIX March 9,

48 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% APPENDIX March 9,

49 Adjusted net income, Groupe share (in m) Net income from continuing operations, Group share Restatement for non-recurring income and expenses (before tax) Restatement for exceptional items in net financial expenses Tax impact (1) Restatement on share of income from minorities and companies consolidated by the equity method Adjusted net income, Group share 1,113 1,031 Note : (1) Tax impact of restated items (from non-recurring income and expenses and financial expenses) and non-recurring tax items APPENDIX March 9,

50 Earnings per share ( per share) Net income from continuing operations Net income from discontinued operations 0.00 (0.05) 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 March 9,

51 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 APPENDIX March 9,

52 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% APPENDIX March 9,

53 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 APPENDIX March 9,

54 Hypermarkets: The format for routine shopping needs With low prices all year round, in-store animations and promotions 1,328 stores ranging from 2,400 m² to 23,000 m² Banner : stores in France stores in other European countries 182 stores in Latin America 374 stores in Asia 90 stores in other countries APPENDIX March 9, 9,

55 Supermarkets: Choice close to home 3,227 stores ranging from 1,000m² to 3,500 m² Banners: 1,062 stores in France 1,777 stores in other European countries 168 stores in Latin America 38 stores in Asia 182 stores in other countries APPENDIX March 9, 9,

56 Convenience: Essential daily products Catering to daily shopping needs with extended shopping hours 7,075 stores ranging from 200 m² to 900 m² 4,222 stores in France Banners: 2,312 stores in other European countries 468 stores in Latin America 27 stores in Asia 46 stores in other countries APPENDIX March 9, 9,

57 Cash & Carry: Wholesale prices and customized services 305 stores Banners: 143 stores in France 13 stores in other European countries 134 stores in Latin America 2 stores in Asia 13 stores in other countries APPENDIX March 9, 9,

58 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.