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AGENDA Introduction Our strategy What was done so far Focus on Brazil Implementing our strategy Becoming the preferred retailer in all our formats Improving our organization and operating model Being a leader on all our markets Conclusion 2
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INTRODUCTION OUR STRATEGY A 3 pillar strategy To become the preferred retailer in all our formats, to generate sustainable growth To enhance our organization and our operating model to improve our efficiency and profitability To be the leader in our markets Priority to France, G4 and main growth markets Generate sustainable and profitable growth to improve return to shareholders 4
INTRODUCTION WHAT WAS DONE SO FAR Launch of our Transformation Plan En avant! Revitalize the Carrefour brand Improve price image Reinvent the hypermarket Share best practices and innovation Redefine the Group organization Revamp our operating model Improve purchasing practices Enhance client culture & innovation Improve effectiveness & efficiency GROWTH & MARGINS 5
INTRODUCTION WHAT WAS DONE SO FAR Reshuffling all our formats 1 2 3 Supermarkets Convenience Hard Discount Hypermarket 4 6
INTRODUCTION WHAT WAS DONE SO FAR Laying Carrefour s foundations on a sound basis ITALY / BELGIUM - ensure our development in a redefined and sound basis THAILAND RUSSIA - disposal of our businesses INDONESIA - partnership with Para CT BRAZIL - mandating of an audit implementation of a specific action plan for hypermarkets 7
FOCUS ON BRAZIL Laying Carrefour s foundations on a sound basis Carrefour has mandated an external audit in Brazil. The one-off charges that will be recorded for 2010 will reach 550 million These one-off charges are composed of depreciation and inventory adjustments, provisions for labor and tax litigation, non-recoverable supplier rebates, depreciation of tangible assets and various accounting adjustments. Investigations are underway and will allow to determine the existence of possible responsibility. 8
INTRODUCTION WHAT WAS DONE SO FAR Transformation plan on track COMMITMENT 2012 2009 2010 YEAR TO DATE DELIVERY Cost reduction 2.1 billion 590m 236m Purchasing savings 1 billion 50m 168m Inventories 7 days 2.3 days (1) 0.6 days (1) Market Share Improvement in France +30bp (2) +60bp (3) (1) At constant exchange rates (2) At constant selling space for Carrefour banners, from 21.1 to 21.4 % (3) At constant selling space for Carrefour banners, year to date to 10 October 2010 9
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2010 2011 IMPLEMENTING OUR STRATEGY 1 Becoming the preferred retailer in all our formats 11
BECOMING THE PREFERRED RETAILER IN ALL OUR FORMATS Roll out 2011 of brand convergence France 800 City / Contact (25%) 600 Dia (65%) Spain Italy 400 Market (90%) Belgium 290 Market (80%) New concepts to be launched in France: Carrefour City Cafe and Carrefour Express 12
BECOMING THE PREFERRED RETAILER IN HYPERMARKETS Main objective Pilot stores Progresses Attract customers Recruit new customers Enhance frequency visit of customers 5 (+ 1) pilot stores in Europe 2 in France 2 (+1) in Spain 1 in Belgium Increase in traffic market share in all stores Encouraging results in Europe Our stores optimization will help us to follow our progresses 13
BECOMING THE PREFERRED RETAILER IN HYPERMARKETS 100 % of our 500 hypermarkets in: FRANCE SPAIN BELGIUM ITALY GREECE 245 STORES CONVERTED (70% of sales) 255 STORES REMODELED (30% of sales) 14
BECOMING THE PREFERRED RETAILER IN HYPERMARKETS 100 % of our 500 hypermarkets in: FRANCE SPAIN BELGIUM ITALY GREECE 245 STORES CONVERTED (70% of sales) 255 STORES REMODELED (30% of sales) TRANFORMATION COMPLETED BY EARLY 2013 AS PLANNED 15
2010 2011 IMPLEMENTING OUR STRATEGY 2 Enhancing our organization and operating model 16
ENHANCING OUR ORGANIZATION AND OPERATING MODEL Improving our efficiency and delivering operating cost savings by: Estimated operating cost reductions ( m) 1 090 (3) 1 500 (1) 2 100 (1) - Reengineering our store processes 590 (2) 950 (1) - Optimizing Headquarter costs 500 (1) 2009 2010E 2011 2012 (1) Initial estimates (2) Achieved in 2009 (3) Estimate 2010 17
ENHANCING OUR ORGANIZATION AND OPERATING MODEL Reengineering our store processes Standardization of processes across departments /Sections Specialized dedicated teams for storage supervision, replenishment, shelf availability management Emblematic move from historical 1 department 1 team organization to a culture of efficiency and processes Higher productivity and lower costs, with improved shelf-availability To be adapted and rolled out 18
OPTIMIZING HEADQUARTER COSTS Simplify the organization, accelerate decision making process, lower costs Closure of the Levallois headquarters at the end of 2010 French teams relocated on one single site rather than 4 by the end of 2013 Relocation of Dia s headquarters in Madrid 19
2010 2011 IMPLEMENTING OUR STRATEGY 3 Being a strong leader in all our markets 20
BEING A LEADER IN LATIN AMERICA Brazil: specific action plan to improve hypermarkets performance continue Atacadao expansion, accelerate discount roll out Argentina and Colombia: continue expansion, Atacadao roll out 21
BEING A LEADER IN ASIA China: continue expansion and strengthen our leadership position in big cities Indonesia: accelerate expansion trough our strategic partnership Taiwan: ensure our N 1 position in hypermarkets format Malaysia: continue expansion to approach a leadership position 22
BEING A LEADER IN EUROPE Turkey: organic growth to strengthen our position G5: ensure brand convergence, the roll out of Carrefour Planet and new concepts Poland: confirm turnaround with organic growth and expansion through franchisees 23
SHAREHOLDER VALUE CREATION AT THE HEART OF CARREFOUR STRATEGY 24
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CONCLUSION Continuing focus on the flawless execution of our 3-year Transformation Plan Continued expansion in priority markets Disciplined financial strategy to improve shareholder returns On track to achieve our 2013-2015 objectives Roll-out of the reinvented hypermarket 26
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