q320: strong performance across the board
TRANSCRIPT
Grupo Carrefour BrasilQ3 2020 Results
November 11, 2020
Q320: ANOTHER QUARTER OF SOLID RESULTS
2An omnichannel and integrated ecosystem
» Among the food retailers with the lowest
distribution costs in Brazil
» Robust performance in any situation
» 25.8% LfL growth, the highest in its recent
history
» Positive commercial dynamics, gradual
reopening of B2B and strong B2C traffic
» Launch of e-commerce
» New loyalty program
» Ecosystem connection
» 2x growth vs. total market
» LfL ex-petrol 26.6%
» +32% share of wallet
» +22% private label volume
» +16% billings in Q320, a clear
indication of recovery
» Better-than-expected
delinquency ratios
» Launch of new platform
» R$895 million total GMV
» Ranked 7th in number of visits in
September
» 1.6 days is the average delivery time of
food e-commerce
» Portfolio and NPL quality continue
improving
» Higher efficiency enables the start of
new growth cycle
» Product diversification
3
Q320: STRONG PERFORMANCE ACROSS THE BOARDQ
32
02
0
GROSS SALESINCL.PETROL
R$ 19.3 bn
+27.3% yoy
ADJ. NET INCOMEGROUP SHARE.
R$ 757 mn
+73.1% yoy
4.3% margin
(+120 bps)
Consolidated 26.0%
Atacadão 25.8%
Retail 26.6%
3.8%
26.0%
6.0%
16.4%
Q319 Q320 9M19 9M20
LfL consolidated sales evolution
(ex-petrol)
14.1%12.1%
14.1% 12.9%
Q319 Q320 9M19 9M20
SG&A evolution as
% of net sales8.2% 7.7% 8.1% 8.1%
1,129 1,339
3,2893,878
-
1,000
2,000
3,000
Q319 Q320 9M19 9M20
Adjusted EBITDA evolution
+18.6%
+17.9%
LfL EX-PETROL
ADJUSTED
EBITDA
R$ 1.3 bn
+18.6% yoy
7.7% margin
(-50 bps)
LEVERAGE & DEBT
R$4.4 bn*0.82x net debt/ Adj. EBITDA LTM
R$5.4 bn*Includes discounted receivables
1.0x net debt/Adj. EBITDA LTM
*Includes lease debt (IFRS16)
4
1.8%
5.5%7.0%
8.6%
25.8%
Q319 Q419 Q120 Q220 Q320
LfL ex-Calendar
ATACADÃO: STRONG LFL AND PROFITABILITY GROWTH
Best
quarter in
its recent history 650
984
Q319 Q320
Evolution of Adjusted EBITDA (R$ million)
+51.4%
+31.3% yoyGross sales
25.8% LfL
A remarkable quarter
5.5% growth +3 new stores
Adjusted EBITDA
R$984 million+51.4% yoy
Adjusted EBITDA Margin
8.0% (+110 bps yoy)
» Higher commercial agility, return of B2B customers
and continued business with B2C customers resulted
in unprecedented volumes
» Among the food retailers with the lowest distribution
costs in Brazil
» Digital development
» 300+ sellers in the marketplace
» 23 stores and 11 states with last-mile delivery
Last-miledelivery
Stores
Stores with last-mile delivery
1
1
111
1
2
1
2
1
1
19.2%
Retail + C&C
12.7% 12.7%
22.9%25.5%
Retail Hypermarkets
Market Carrefour
Source: Nielsen
Nielsen methodology show s slight ly different
grow th for Carrefour Retail.
5
RETAIL: GROWING TWICE AS FAST AS THE MARKET FOR THE SECOND CONSECUTIVE QUARTER
+26.6%* LfL
ex-petrol
Growing twice total market
+32%Share of wallet
in September
Increasing share
of wallet
# of SKU per basket (growth in Q320)
Hyper
+14%
Super
+25%
Convenience
+33%
14.7%Penetration of
private label
products
Helping customers to save
money and eat better
Growth in private label volume (%)
Total Private Label
Private LabelFMCG
+22% +35%
Generating traffic for non-
food business
Textile
+34%
Appliances
+47.6%
+37% non-food growth
in Q320
Bazaar
+32%
+15,4%*
Food
+43,6%*
Non-food
* Includes e-commerce
c6
» Customized discounts by category
» Sampling: Artificial Intelligence is used to suggest
Private Label products with up to 100% discount
» Connectivity with Cybercook
» Bank: Access to the Bank app functionalities
» Scan & Go: Payment directly through the app
» Technology 100% proprietary, built to be easily
integrated with other retailers and partners
» Connecting the entire Carrefour ecosystem
• 20 million + customers already registered in “Meu Carrefour”
• All formats (stores, gas stations, drugstores, e-commerce and bank) are
connected
» Creating Rewards: new “My Rewards” functionality
• Monthly, steady goals, customized based on purchase history at Carrefour and budget.
• More savings on complete purchase
• Attractive rewards (rebates, discount vouchers for purchases, or use with our
partners)
RETAIL: A NEW APP TO DRIVE HIGHER SHARE OF WALLET AND SIMPLIFY THE OPERATION
Full access
to Carrefour in the palm of your hand:connecting the ecosystem and
providing solutions that facilitate the daily lives of our consumers.
7
E-COMMERCE: DRIVING HIGHER TRAFFIC AND QUALITY EXPERIENCE
Solid GMV growth reaching levels similarto Q220 and above Q419 (Black Friday)
Launch of new platform, fully customized inOctober
Total GMV Growth*
* Includes last mile deliv ery
481
833550
918 895
Q319 Q419 Q120 Q220 Q320
+86%
High level of service: 98.2% of our foodorders were delivered on time, with anaverage delivery t ime of 1.6 days inSeptember
Food GMV by platform
Ranked 7th in the number of visits inSeptember, the same level as at peak ofthe pandemic
c
+119% yoyStandard delivery
+279% yoy
Last-miledelivery
c c
High connection with the bank enabling credit card sales through the new platform
c
c
c
c
8
Retail Adjusted EBITDA (R$ million)
+62%
Adj.EBITDA Q319
Retail Gas Stations +
Galleries
Adj. EBITDA Q320
Retail Adjusted EBITDA
R$410 million
+62.1% yoy
Adjusted EBITDA Margin
8.0% (+220 bps yoy)
RETAIL: STRONG EBITDA GROWTH
» Solid results even with the negative impact of oil and galleries» SG&A efficiencies: +6.2% (including COVID-19 expenses) with
sales LfL (ex-petrol) increasing 26.6%
25.8% 26.1%
Q319 Q320
Gross Margin
+30 bps
893 948
20.3%18.4%
0.00%
5.00%
10. 00%
15. 00%
20. 00%
25. 00%
30. 00%
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Q319 Q320
-190 bps
SG&A as % of Net Sales
+6.2%
BANCO CARREFOUR: ENTERING A NEW GROWTH CYCLE
* Information according to BACEN methodology No. 2682/99
9
» Higher coverage of provisions for loans overdue 365 days due to high volatility of macroeconomic scenario and its impacts on the IFRS9
provision model: Exceptional provision of R$ 180 million in Q3
» Greater product diversification
» New growth cycle indicates results recovery trend
5.2% 4.3% 4.3%5.4%
3.4%
3Q19 4Q19 1Q20 2Q20 3Q20
Portfolio past due 15 to 90 days – BRGAAP* (%)
Over 30 and Over 90 Evolution– BRGAAP* (%)
10.0% 9.9% 10.6%13.1% 11.8%
13.3% 12.9% 13.9%17.0%
13.8%
3Q19 4Q19 1Q20 2Q20 3Q20
Over 90 Over 30
Monthly billings evolution
+16% billings
In Q320 (+24% vs. Q220)
Improved riskratios
Delinquencydecrease
+20% a.a.
R$ 12.3 billioncredit portfolio
(IFRS9) +19.8% yoy
Average spending recovery of customers
Higherpropensity
Improv edbusiness generation
Increase ofnew accounts
BILLINGS RECOVERY WITHOUT INCREASING THE NUMBER OF NEWLY INDEBTED CUSTOMERS
Support increasingly sustainable production models
We changed our way of doing and managing
TRANSFORMATIONAL ACTIONS
Fast adaptation to new ways of working
» One of the few retailers to maintain all the initiatives taken since March against Covid-19, ensuring a healthy
and safe environment for our customers and employees
» The first Brazilian retail company to receive the international “My Care” label
New logistics energy matrix
- 17% in carbon emissions in H120 (vs. H119)
» Reduce CO2 emissions
» Neutralize 100% of emissions
» Partnership with Green Farm CO2 Free Preservation and
protection of
environment
Social Role
Commitment to the future
» Global commitment to zero deforestation
» Monitoring of 80%+ meat volume - 100% target by the end of 2020;
» Governance: Inclusion of a term and the zero deforestation policies in
contracts;
» Project with WWF for Collaboration for Forestry and Agriculture:
productive engagement and improved monitoring of direct suppliers.
» Pilot with the NWF NGO and the Frialto slaughterhouse: indirect
monitoring (livestock and soy).
c10
11
OMNICHANNEL AND INTEGRATEDWe implemented structural initiatives that will guarantee the future of our ecosystem
+26% LfLAtacadão
+27% LfLRetail (ex-petrol)
Breakeven e-commerce
+16%
Bank billings
+73% Adjusted net income
Q3
20
20
Digital transformation (B2B and B2C)
Customer-centric vision
Financial products
diversification
New promotional
dynamics
Mounting NPS and share of wallet
Focus on the offer of healthy food and of easy access
Increased penetration of private label
Sustainability
New loyalty program
Accelerationat Atacadão
e-business
DISCLAIMER
12
This document contains both historical and forward-
looking statements on expectations and projections
about operational and financial results of the Company.
These forward-looking statements are based on
Carrefour management's current views and
assumptions. Such statements are not guarantee of
future performance. 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 CVM (Brazilian
Securities Commission) in particular the Reference Form.
The Company does not assume any obligation to
update or revise any of these forward-looking
statements in the future.
Telephone: +55 11 3779-8500
www.grupocarrefourbrasil.com.br
IR Contactc
Sébastien Durchon
Vice-President of Finance (CFO) and
Director of Investor Relations
Natália Lacava
Investor Relations Director
Ludimila Aielo | Victor Bento
Investor Relations Specialists