2018 results - carrefour.com · brazilian real -16.2% argentine peso -40.4% polish zloty -0.1%...

2018 Results

February 28th, 2019

01

Carrefour 2022 Alexandre BOMPARD Chairman & CEO

SATISFYING RESULTS Concrete actions to become the leader in the food transition for all

Construction of a growth model

• Rapid revamp of the in-store commercial proposition supported by partnerships

• Speedy roll-out of the omnichannel offer

• Expansion in growth formats

Culture of operational efficiency and financial discipline

• Profound transformation for more agile organizations

• Purchasing alliances

• Process industrialization and cost optimization dynamic

• Enhanced selectivity and productivity of investments

• Inventory reduction

Powerful transformation dynamic launched in 2018

3 (1) at constant FX vs. reported 2017 (2) vs. reported 2017

Sales

+1.4% LFL

Recurring Operating Income €1,905m (post-IAS 29)

€1,938m (pre-IAS 29)

+4.6%(1)

Adjusted net income, Group share

growing to €802m(2)

2018 RESULTS – 28/02/2019

Free Cash Flow ex exceptionals

up 15% at €1,088m

FINANCIAL OUTLOOK New ambition in the construction of a growth model

• Simplification of assortments: Target raised to a reduction of -15% (vs -10%) by 2020

• New objective of 400,000 sq.m sales area reduction worldwide by 2022

• Objective raised to 3,000 convenience stores openings by 2022 (vs 2,000)

Strengthened culture of operational efficiency and financial discipline

• Cost-savings objective raised to €2.8bn (vs €2.0bn) on an annual basis by 2020

Upwards revision of several targets

4

€2.8bn cost reduction plan

on an annual basis by 2020 (vs €2.0bn initially)

2018 RESULTS – 28/02/2019

€5bn of food e-commerce sales

in 2022

€5bn sales in organic products

in 2022

Disposal of non-strategic real estate

assets for €500m by 2020

Leader in the food transition for all

ACCELERATING GROWTH IN SALES OF ORGANIC PRODUCTS: €1.8BN IN 2018

Objective confirmed: €5bn in sales of organic products in 2022

5 2018 RESULTS – 28/02/2019

DEVELOPMENT OF THE ORGANIC OFFER

• Broadening of the assortment of organic products

FOOD QUALITY

• Continued deployment of blockchain technology to Carrefour Quality Line (FQC)

PRODUCT LINES

• More than 200 partnerships to support producers to convert to organic farming

GOVERNANCE

• Food Orientation Committee operational

ANIMAL WELFARE

• Carrefour is the first French retailer to require that cameras be installed in slaughterhouses

Construction of a growth model (1/2)

6

STORE MODERNIZATION, TO OFFER A BETTER SHOPPING EXPERIENCE

• Shop-in-shops: 2 with Darty in France, 2 with Media Markt in Poland, 11 with Gome in China

• Move to lease management of 5 hypermarkets in France in Sept. 2018

• Adaptation of sales area: Acceleration of sales area reallocation

MAJOR REVAMP OF IN-STORE COMMERCIAL PROPOSITION

• Reduction of assortments: c.-6% globally in 2018

• New Financial services

COMMERCIAL INVESTMENTS TO REINFORCE COMPETITIVENESS

• Price investments started beg. 2018, notably in France and in Brazil

• Purchasing power in France: Fuel-at-cost commercial operation in November

Objective raised to a -15% reduction of assortments by 2020 (vs -10%)

New investments such as « Primes Fidélités »

New tests of shop-in-shops, additional moves to lease management New objective of 400,000 sq.m sales area reduction worldwide by 2022

2018 RESULTS – 28/02/2019

Construction of a growth model (2/2)

7

RAPID EXPANSION OF GROWTH FORMATS

• Cash & Carry: 20 new Atacadão in 2018, 16 hypers converted into Maxi in Argentina

• Convenience: 474 new stores in 2018

« RETAILTECH », IMPLEMENTATION OF NEW TECHNOLOGIES

• Key digital partnerships: Google, Tencent, Sapient

• New technologies: Scan & Go rolled-out, ongoing deployment of self check-out

CONTINUED ROLL-OUT OF THE OMNICHANNEL OFFER IN ALL COUNTRIES

• Roll-out of new Drives: 1,616 Drives worldwide at end 2018, 51 pedestrian Drives in France as of end Feb. 2019

• Strong growth of food e-commerce: €1.2bn sales in 2018, above 30% growth

Additional Drive openings planned (incl. pedestrian ones) Objective confirmed: €5bn food e-commerce sales in 2022

Additional Cash & Carry openings planned (incl. 20 Atacadão) Objective raised to 3,000 (vs. 2,000) convenience store openings by 2022

Opening of Carrefour Digital Hub in March 2019

2018 RESULTS – 28/02/2019

Culture of operational efficiency and financial discipline

€1,050MN COST SAVINGS ACHIEVED IN 2018

Cost-reduction objective raised to €2.8bn on an annual basis by 2020

2018 RESULTS – 28/02/2019

ORGANIZATIONS HAVE BECOME SIMPLER AND MORE AGILE

• Voluntary departure plans closed in France, Argentina and Belgium

• Full exit of ex-Dia stores completed

MORE INDUSTRIALIZED AND EFFICIENT APPROACH

• Standard sourcing protocols for goods not for resale inspired by industrial players

• First joint purchasing negotiations between countries finalized in Europe

OPERATIONAL IMPLEMENTATION OF PURCHASING ALLIANCES

• Tesco and Système U: Gains from ongoing negotiations expected from 2019

• Alliances with PAM/Végé in Italy and Provera in Belgium

COST REDUCTION AND SELECTIVE & PRODUCTIVE INVESTMENTS

• A cost-reduction dynamic is being implemented

• The selectivity and productivity of investments has been strengthened

8

02

Financial analysis Matthieu MALIGE CFO

Sales

2018 key figures

(1) variation at constant FX vs. reported 2017 2018 RESULTS – 28/02/2019 10

Recurring operating income

Adjusted net income, Group share Free cash flow ex. exceptional items

+1.4% LFL €1,905m (post IAS 29)

€1,938m (pre IAS 29)

+€93m i.e. +4.6%(1)

growing +15% to €1,088m

(vs €950m reported in 2017)

growing to €802m (vs €773m reported in 2017)

IAS 29 Other scope

effect**

€87.6 bn

€89.8 bn

Petrol FY 2017* LFL ex petrol ex calendar

Calendar Expansion FY 2018 at

constant fx rates pre IAS

29

+0.8%

Forex

€85.2 bn

-0.1%

FY 2018 at

current fx rates pre IAS

29

FY 2018 at

current fx rates post IAS

29

€84.9 bn

+1.4% +1.4% -0.9% +2.5% -5.3%

-2.8% (248)

France

+0.3% -1.6%

Europe LatAm

+8.9% -3.7%

Asia

FY 2018 Sales: A new year of LFL growth Acceleration in H2 at +2.0% LFL (vs +0.7% in H1)

*FY 2017 restated for IFRS 5

** Transfers, closures and others

CHANGE IN FY 2018 GROSS SALES – (in % and €m)

11 2018 RESULTS – 28/02/2019

CURRENCY 2018

Evolution

Brazilian Real -16.2%

Argentine Peso -40.4%

Polish Zloty -0.1%

Romanian Leu -1.8%

Chinese Yuan -2.3%

Taiwanese Dollar -3.6%

Negative FX impact, mainly due to BRL evolution

-€161m negative FX impact(1)

on 2018 ROI

(1) FX evolution pre-IAS 29 vs. 2017 reported 12 2018 RESULTS – 28/02/2019

2017 reported

2018 pre-IAS 29

Evolution at constant FX

(€m / %)

2018 post-IAS 29

Net sales (in €bn) 78.9 76.2 +1.4% LFL 76.0

Gross margin from recurring operations as a % of net sales

23.1% 22.5% 22.5%

Total distribution costs (€mn) (1) (14,641) (13,719) (13,668)

As a % of net sales -18.6% -18.0% -18.0%

Recurring operating income (ROI) (€mn) 2,006 1,938 +€93m / +4.6%

- €161m FX impact 1,905

As a % of net sales 2.5% 2.5% 2.5%

2018 ROI growing +€93m (at constant exchange rates)

(1) Total distribution costs are composed of sales, general and administrative expenses 2018 RESULTS – 28/02/2019 13

Gross margin decrease due to the evolution of integrated/franchise mix and commercial investments made in competitive markets

Distribution costs down, reflecting the effectiveness of the cost reduction program

COGS Distribution costs

First gains recorded from joint purchasing within Carrefour

Further gains from purchasing alliances (Tesco, Système U, etc.) expected starting from 2019

Reduction in 2018 (at 18.0% vs 18.6%)

Simplified and agile organisations

Efficiency measures implemented on SG&A

Deployment of standard sourcing protocols for goods not for resale inspired by industrial players

2018 2020

Cost-savings plan

Successful implementation of cost-reduction program: €1,050mn achieved in 2018

COST-SAVINGS OBJECTIVE RAISED TO €2.8BN BY 2020

14

€1,050m

€2bn €2.8bn

2018 RESULTS – 28/02/2019

Key initiatives Status Achievements Savings recognition

HQ France Voluntary departure plan (c.2,400 FTE)

Voluntary departure plan completed ahead of schedule in Sept. 2018

Started in H2 2018

DIA 273 ex-Dia stores to be removed from Group scope

All stores sold or closed at end July 2018

Ex-Dia scope discontinued from January 1st, 2018

Belgium

Voluntary departure plan (c.1,000 FTE) Conversion of 5 hypermarkets to supermarkets Flexibility measures in hypers

Voluntary departure plan to be fully completed in Q2 2019 Hypermarkets converted in Q4 2018

Mostly in 2019

Argentina

Crisis prevention plan 11 store closures Voluntary departure plan (c.1,000 FTE)

6 stores closed in H2 2018 Voluntary departure plan completed in 2018

Started in H2 2018

Restructuring initiatives well underway

15 2018 RESULTS – 28/02/2019

(in €m) 2017

reported 2018 % change

Net sales 35,835 35,615 -0.6%

LFL ex petrol, ex calendar

+0.3%

ROI 692 466 -32.6%

ROI margin 1.9% 1.3% -62bp

2018 RESULTS – 28/02/2019

France ROI drop in 2018 as anticipated

16

Broadly stable sales year-on-year in a persistently competitive market

ROI drop in 2018 as anticipated : • Sales growth remained weak

• Competitive market environment

• Upfront investments in competitiveness, ahead of cost cuts (whose effects took longer to materialize than internationally)

• Specific investments to develop order preparation platforms and launch the Act for Food campaign

“Yellow vests” protests mainly affected hypermarkets and non-food in Q4

2018 RESULTS – 28/02/2019

Other European countries Stable recurring operating income margin

17

Tough market environment

Overall stable sales trends, contrasted between growth in Eastern Europe and decline in Western Europe

Stable ROI margin: Cost-cutting dynamics helped offset competitive pressures and commercial investments

(in €m) 2017 2018 % change at current

FX

% change at constant

FX

Net sales 21,112 21,076 -0.2% +0.0%


-1.6%

ROI 677 664 -1.9% -1.7%

ROI margin 3.2% 3.2% -5bp -5bp

2018 RESULTS – 28/02/2019

Latin America Strong commercial momentum and improved profitability

18

Brazil:

• Continued strong sales momentum at Atacadaõ and accelerated pace of openings (+20 stores in 2018)

• Solid performance at Carrefour Retail and strong development of e-commerce

• Strong growth and continued development of financial services. Atadacaõ credit card ramping up above expectations

Argentina: Success of the turnaround plan reflected in accelerating growth of traffic and volumes; back to breakeven in 2018 despite tough macro environment

Solid ROI margin improvement

(in €m) 2017 2018

Pre-IAS 29

% change at current

FX


FX

2018 Post-IAS 29

Net sales 16,042 14,007 -12.7% +11.0% 13,809


+8.9%

ROI 715 800 +11.9% +33.8% 767

ROI margin 4.5% 5.7% +125bp +92bp 5.6%

(in €m) 2017 2018 % change at current

FX


FX

Net sales 5,907 5,501 -6.9% -4.1%


-3.7%

ROI 4 45 +€41mn +€43mn

ROI margin 0.1% 0.8% +74bp +75bp

2018 RESULTS – 28/02/2019

Asia Significant improvement in recurring operating income

19

Solid growth of e-commerce and adaptation of commercial model in China, good momentum in Taiwan

Clear improvement in ROI in China

• Initiatives to transform the commercial model of hypermarkets (“Le Marché” concept)

• Very strong acceleration in O2O (online to offline)

• Cost-reduction and closures of loss-making stores

(in €m)

2017 reported 2018

Recurring operating income 2,006 1,905

Net income from associates and JVs 4 14

Non-recurring income and expenses, net (1,310) (1,161)

EBIT 700 758

Net financial expenses (445) (262)

Income before taxes 255 496

Income tax expense (618) (539)

Normative tax rate 31.7% 31.4%

Net income from discontinued operations 1 (301)

Consolidated Net income (362) (344)

Net income, Group share (531) (561)

Net income from continuing operations, Group share (531) (259)

Minority interests 169 216

Adjusted net income, Group share from continuing operations 773 802

Adjusted net income, Group share, from continuing operations of €802mn

20

Principally including the 273 ex-Dia stores that exited the Group’s scope

Stable normative tax rate reflecting footprint and country weight

€182mn improvement in net financial expenses due to improved refinancing terms

Mainly related to Carrefour 2022 transformation initiatives

2018 RESULTS – 28/02/2019

(in €m)

2017 reported 2018



Income before taxes (excl. non-recurring income and expenses) 1,565 1,657

Full-year normative tax rate (1) 31.7% 31.4%

Normative tax expense (496) (521)

Non income-based taxes (incl. CVAE (2)) (62) (51)

Others (3) (60) 33

Total tax expense (618) (539)

Effective tax rate 242.0% 108.6%

A stable full-year normative tax rate at 31.4%

21

(1) Full-year normative tax rate: Reflects Carrefour’s geographic footprint and the relative weighting of each country; Calculation based on local corporate income tax rate applied to pre-tax income excluding non-current items

(2) CVAE: Local business tax in France assessed on the basis of the value-added generated by the business, recorded as corporate income tax (3) The major part of DTA generated by non current expenses 2018 are depreciated

The effective tax rate is strongly affected by a high level of non-current expenses in pre-

tax income

The 30 bp decrease mainly reflects a decrease of France pre-tax income

(excluding non-current) in 2018 vs 2017

2018 RESULTS – 28/02/2019

Restructuring expenses linked to 2018 announcements booked in P&L

Around 50% of 2018 restructuring costs cashed-out in 2018. Balance expected in 2019

Non-recurring income and expenses reflecting transformation initiatives

2018 RESULTS – 28/02/2019 22

(in €m)

2017 reported 2018

Restructuring costs (279) (727)

Impairment and asset write-offs (1,039) (202)

Results from asset disposals 22 57

Other non-current items (13) (289)


Related to Carrefour 2022 transformation initiatives, notably in France, Belgium and

Argentina

Note: non-recurring expense related to the ex-Dia network and included in the net income from discontinued activities amounts to €(190)m in 2018

Mainly related to ICMS credits in Brazil

and exceptional profit-sharing in France in 2018

Free Cash Flow generation at €1,088m (excl. exceptional items)

2018 RESULTS – 28/02/2019 23

(in €m)

2017 reported 2018

EBITDA 3,636 3,469

Income tax paid (588) (513)

Cash impact of non-recurring items (320) (452)

Others (incl. financial result) (76) (256)

Gross cash flow (excl. discontinued) 2,653 2,248

Change in working capital 189 (54)

Discontinued activities 0 (86)

Operating cash flow (incl. exceptional items and discontinued) 2,843 2,108

Capital expenditure (2,379) (1,611)

Change in net payables to fixed asset suppliers (88) (53)

Net asset disposals (business-related) 127 194

Discontinued activities 0 (2)

Free cash flow 503 636

Free cash flow from continuing operations, excl. exceptional items 950 1,088

Capex reduced thanks to greater productivity and selectivity of investments

Inventory reduction offset by lower payables to suppliers

Mainly related to cash-out of Carrefour 2022 transformation initiatives

Increase of non-strategic real estate asset disposals

Better inventory management in most geographies

• Inclusion of cash objectives in bonus schemes

• Supply chain: Optimization of flows

• Assortment rationalization

• Strong decrease in non-food

• Decrease in most geographies

Capex well-controlled at €1.6bn reflecting more selectivity and productivity of investments, mainly concentrated on:

• New commercial concepts (such as organic food spaces)

• E-commerce (single websites, order preparation platforms, etc.)

• Expansion in growth formats (470+ new convenience stores, 20 new Atacadaõ stores, etc.)

Reduced inventories and well-controlled capex

-8%

€2,379m

€1,611m

2017 reported 2018

2018 capex ex. Cargo down €581m

or 27% at current FX

6,690

6,435

6,135 (300)

2017

reported

2018

constant FX

Forex 2018

current FX

Inventory (in €m)

-€255m

2018 RESULTS – 28/02/2019 24

Globally stable net debt

25

€165m improvement inc. a €452m cash out

related to exceptional item (mainly restructuring)

2018 RESULTS – 28/02/2019

Others Dec 31, 2017 Net Debt

€3,743m

Dividends FCF

€3,578m

Cost of net financial debt

Dec 31, 2018 Net Debt at constant FX

Forex

€3,785m

Dec 31, 2018 Net Debt at current FX

(235) (233) (3)

(206) 636

2018 RESULTS – 28/02/2019

Successful refinancing operations in 2018

Successful operations in 2018:

• March 2018: Issuance of $500 million non-dilutive cash-settled convertible bond, swapped in euros with a maturity of 6 years and a zero coupon

• June 2018: Issuance of €500 million bonds with a maturity of 5 years and 0.875% coupon

• November 2018: Issuance of €500 million bonds with a maturity of 7 years and 1.75% coupon

At end December 2018, debt maturity stood at 3.6 years

Credit Rating as of December 31st, 2018: BBB + negative outlook (S&P), Baa1 stable outlook (Moody’s)

The Group has €3.9bn credit facilities available maturing in 2022 and in 2023

26 *The $500m Convertible Bonds of 2023 and 2024 are here converted using the €/$ exchange rate of December 31, 2018

750

750

500

500

1.75%

1,000

2019

4.00%

2022 2023 2021 2020

1.75%

3.88%

0.49%

437*

0.51%

1,000 437*

2024

1.25%

2025

1.75%

2026

1,000 1,000 937

1,187

Average annual coupon 2018 Issuance

Debt redemption schedule (in €m)

Dividend of €0.46 per share

27

Dividend of €0.46 (stable vs 2017)

Representing a

total amount of c.€350m proposed to the

General shareholders’ meeting on June 14, 2019

Payout of c.45% of adjusted net income, Group

share

Payment in shares or in cash

2018 RESULTS – 28/02/2019

FINANCIAL OUTLOOK New ambition in the construction of a growth model

• Simplification of assortments: Target raised to a reduction of -15% (vs -10%) by 2020

• New objective of 400,000 sq.m sales area reduction worldwide by 2022

• Objective raised to 3,000 convenience stores openings by 2022 (vs 2,000)

Strengthened culture of operational efficiency and financial discipline

• Cost-savings objective raised to €2.8bn (vs €2.0bn) on an annual basis by 2020

Upwards revision of several targets

28

€2.8bn cost reduction plan

on an annual basis by 2020 (vs €2.0bn initially)

2018 RESULTS – 28/02/2019

€5bn of food e-commerce sales

in 2022

€5bn sales in organic products

in 2022

Disposal of non-strategic real estate

assets for €500m by 2020

Appendix

(in €m)

2017 reported

2018 pre-IAS29

Variation at constant exch. rates

Variation at current exch. rates

France 35,835 35,615 -0.6% -0.6%

Other European countries

21,112 21,076 +0.0% -0.2%

Latin America 16,042 14,007 +11.0% -12.7%

Asia 5,907 5,501 -4.1% -6.9%

International 43,061 40,584 +3.5% -5.8%

Global functions

TOTAL 78,897 76,199 +1.7% -3.4%

Net sales and recurring operating income per region

2017 reported

2018 pre-IAS29



692 466 -32.6% -32.6%

677 664 -1.7% -1.9%

715 800 +33.8% +11.9%

4 45 n.m. n.m.

1,397 1,510 +19.6% +8.1%

-83 -38 -55.2% -54.4%

2,006 1,938 +4.6% -3.4%

NET SALES RECURRING OPERATING INCOME

2018 RESULTS – 28/02/2019 30

(in €m)

2017 reported

2018 post-IAS29



France 35,835 35,615 -0.6% -0.6%

Other European countries

21,112 21,076 +0.0% -0.2%

Latin America 16,042 13,809 +15.7% -13.9%

Asia 5,907 5,501 -4.1% -6.9%

International 43,061 40,385 +5.3% -6.2%

Global functions

TOTAL 78,897 76,000 +2.6% -3.7%

Net sales and recurring operating income per region

2017 reported

2018 post-IAS29



692 466 -32.6% -32.6%

677 664 -1.7% -1.9%

715 767 +23.6% +7.2%

4 45 n.m. n.m.

1,397 1,476 +14.3% +5.7%

-83 -38 -55.2% -54.4%

2,006 1,905 +1.0% -5.0%

NET SALES RECURRING OPERATING INCOME

2018 RESULTS – 28/02/2019 31

(in €m)

2018 Pre-IAS 29

IAS 29 impact 2018

Post-IAS 29

Net sales 76,199 (198) 76,000

Net sales, net of loyalty program costs 75,459 (198) 75,261

Other revenue 2,658 (2) 2,656

Total revenue 78,117 (200) 77,917

Cost of good sold (60,985) 136 (60,850)

Gross margin from recurring operations 17,131 (64) 17,067

SG&A (13,719) 51 (13,668)

Recurring operating income before D&A (EBITDA) (1) 3,481 (13) 3,469

Depreciation and amortization (1,474) (20) (1,494)

Recurring operating income (ROI) 1,938 (33) 1,905

Recurring operating income (ROI) including income from associates and JVs 1,952 (33) 1,919

Non recurring income and expenses (1,159) (2) (1,161)

EBIT 793 (35) 758

Financial expense (318) 56 (262)

Income tax expense (537) (2) (539)

Minority interests (219) (2) (216)

Net income from continuing operations, Group share (280) 21 (259)

Net income from discontinued operations, Group share (301) (301)

Net income, Group share (582) 21 (561)

Adjusted net income, Group share 779 23 802

Depreciation from supply chain (in COGS) (69) (1) (70)

IAS 29 impact on P&L

32 (1) Recurring operating income before depreciation and amortization (including supply chain depreciation) 2018 RESULTS – 28/02/2019

(in €m)

2017 reported 2018

Net sales 78,897 76,000

Net sales, net of loyalty program costs 78,253 75,261

Other revenue 2,722 2,656

Total revenue 80,975 77,917

Cost of good sold (62,760) (60,850)

Gross margin from recurring operations 18,214 17,067

SG&A (14,641) (13,668)

Recurring operating income before D&A (EBITDA) (1) 3,636 3,469

Depreciation and amortization (1,567) (1,494)

Recurring operating income (ROI) 2,006 1,905

Recurring operating income (ROI) including income from associates and joint ventures 2,010 1,919

Non recurring income and expenses (1,310) (1,161)

EBIT 700 758

Financial expense (445) (262)


Minority interests (169) (216)

Net income from continuing operations, Group share (531) (259)

Net income from discontinued operations, Group share 1 (301)


Adjusted net income, Group share 773 802

Depreciation from supply chain (in COGS) (63) (70)

2018 income statement

33 (1) Recurring operating income before depreciation and amortization (including supply chain depreciation) 2018 RESULTS – 28/02/2019


34

(in €m)

2017 reported 2018

EBITDA (1) 3,636 3,469

Recurring operating income 2,006 1,905

Net income from associates and JVs 4 14

Non-recurring income (1,310) (1,161)

EBIT 700 758

Net financial expenses (445) (262)

Net interest expense (317) (233)

Other net financial expenses (128) (29)



(in €m)

2017 reported 2018

Net income from continuing operations

(363) (43)

Minority share of net income from continuing operations

169 216

Net income from continuing operations, Group share

(531) (259)

Net income from discontinued operations, Group share

1 (301)



2018 RESULTS – 28/02/2019 (1) Recurring operating income before depreciation and amortization (including supply chain depreciation)

(in €m)

2017 reported 2018


Restatement for non-recurring income and expenses (before tax) 1,310 1,161

Restatement for exceptional items in net financial expenses 21 48

Tax impact(1) (10) (43)

Restatement on share of income from minorities and companies consolidated by the equity method

(16) (104)

Restatement for discontinued operations (1) 301



35 (1) Tax impact of restated items (from non-recurring income and expenses and financial expenses) and non-recurring tax items 2018 RESULTS – 28/02/2019

Earnings per share

36

(1) Non significant dilutive impact

(€ per share)

2017 reported 2018

Net income from continuing operations 0.70 (0.34)

Net income from discontinued operations (0.00) (0.39)

Net income, Group share (0.70) (0.73)

Adjusted net income, Group share 1.02 1.04

Weighted average number of shares pre-dilution (in millions)(1) 757.0 772.9

2018 RESULTS – 28/02/2019

(#)

Hypermarkets Supermarkets Convenience Cash & Carry Total

France 247 1,056 3,918 144 5,365

Spain 205 114 748 21 1,088

Italy 51 412 605 15 1,083

Belgium 40 451 303 0 794

Poland 89 152 609 0 850

Romania 35 261 51 13 360

Others 32 386 195 0 613

Other European countries 452 1,776 2,511 49 4,788

Argentina 89 98 396 7 590

Brazil 100 49 120 166 435

Latin America 189 147 516 173 1,025

China 212 0 27 0 239

Taiwan 64 64 0 0 128

Others 96 9 2 0 107

Asia 372 73 29 0 474

Others(1) 124 267 55 13 459

Total 1,384 3,319 7,029 379 12,111

Stores under banners at end 2018

37 (1) Africa, Middle-East and Dominican Republic 2018 RESULTS – 28/02/2019

Group total (post-IAS 29) Gross sales

(in €m)

Change at current exch. rates inc.

petrol

Change at constant exch. rates inc. petrol

LFL ex. petrol

ex. calendar

Organic growth ex. petrol

ex. calendar

France 39,903 +1.1% +1.1% +0.3% -0.7%

Hypermarkets 20,759 -0.1% -0.1% -1.4% -2.0%

Supermarkets 13,018 +1.5% +1.5% +1.6% -0.4%

Others, inc. convenience 6,126 +4.6% +4.6% +3.3% +3.0%

International 45,261 -6.0% +3.6% +2.1% +3.3%

Other European countries 23,467 -0.4% -0.2% -1.6% -1.1%

Spain 9,682 +0.8% +0.8% -1.9% -1.4%

Italy 5,265 -4.4% -4.4% -4.0% -4.7%

Belgium 4,274 -2.3% -2.3% -1.7% -1.8%

Poland 2,114 +2.5% +2.7% +1.6% +3.0%

Romania 2,132 +6.1% +7.9% +4.3% +7.6%

Latin America (pre-IAS 29) 15,713 -12.8% +11.5% +8.9% +12.0%

Brazil 13,097 -9.8% +7.6% +3.9% +8.0%

Argentina (pre-IAS 29) 2,616 -25.2% +28.6% +29.8% +28.8%

Asia 6,080 -7.3% -4.4% -3.7% -4.3%

China 4,144 -10.3% -7.8% -5.9% -7.7%

Taiwan 1,936 -0.1% +3.6% +1.7% +3.7%

Group total (pre-IAS 29) 85,164 -2.8% +2.5% +1.4% +1.6%

IAS 29 impact (248)

Group total (post-IAS 29) 84,916

FY 2018 gross sales

38 2018 RESULTS – 28/02/2019

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.

2018 results - carrefour.com · brazilian real -16.2% argentine peso -40.4% polish zloty -0.1%...

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