FULL YEAR RESULTS
FINANCIAL RESULTS PIERRE JEAN SIVIGNON Deputy Chief Executive Officer, Chief Financial Officer
FURTHER PROFIT GROWTH IN 2015 Variation at (in m) 2014 2015 (1) constant exch. rates Variation at current exch. rates Net sales 74,706 76,945 +4.1% +3.0% Net sales excluding petrol 67,237 70,244 +5.5% +4.5% Gross margin 17,049 18,019 +6.4% +5.7% EBITDA (2) 3,803 3,955 +6.7% +4.0% EBITDA margin 5.0% 5.1% Recurring Operating Income (ROI) 2,387 2,445 +7.0% +2.4% ROI margin 3.2% 3.2% ROI (including associates and joint ventures) 2,423 2,489 +7.2% +2.7% ROI margin (including associates and joint ventures) 3,2% 3.2% Adjusted net income, Group share 1,040 1,113 +7.1% Free cash flow from continuing operations, excluding exceptional items 664 951 + 287m Net debt at close 4,954 4,546-408m (1) The 2015 consolidated financial statements, approved by the Board of Directors on March 9 th, 2016 have been audited by the statutory auditors (2) Recurring operating income before depreciation and amortization (including supply chain depreciation) 3
3.0% GROWTH IN ORGANIC SALES IN 2015 2015 sales variation (in bn and %) 74.7 bn +2.4% +2.5% +4.1% -1.1% +0.6% +3.0% +3.0% 76.9 bn -1.4% 77.7 bn 76.9 bn 2014 net sales LFL Openings/ Closings 2015 ex. petrol organic sales Petrol impact Acquisitions/ Disposals 2015 net sales at constant exch. rates Currencies impact 2015 net sales 4
FOURTH CONSECUTIVE YEAR OF GROWTH FOR CARREFOUR Organic ex. petrol sales growth from 2012 to 2015 (in %) +3.0% CAGR CUMULATIVE c +2.5% +10.6% +3.9% +2.3% +1.0% 2012 2013 2014 2015 2015 5
GROSS MARGIN HOLDS UP WELL Gross margin (in m) Gross margin (As a % of net sales) +6.4% at constant exch. rates 17,049 18,019 +60bp 22.8% 23.4% Further improvement in gross margin as a result of action plans and growth c in sales volumes, particularly in Latin America Marge commerciale en M 2014 2015 6
GOOD CONTROL OF OPERATING COSTS Operating costs (in m) Operating costs (As a % of ex. petrol sales) +6.1% at constant exch. rates 12,373 13,070 +20bp Operating costs under control in France and stable in other European countries 18.4% 18.6% Wage and energy inflation in Latin America and Asia Coûts d'exploitation en M 2014 2015 7
EVOLUTION OF ASSET COSTS Asset costs (in m) Asset costs (As a % of ex. petrol sales) +7.4% at constant exch. rates 2,289 2,505 +20bp Continuing maintenance and renovation program 3.4% 3.6% Coûts d'actifs en M 2014 2015 8
FRANCE: SOLID PERFORMANCE Net sales Organic growth (1) ROI Operating margin Further organic sales growth +1.0% +1.2% +1.1% 36.3 bn 2.6% 3.4% 3.6% 3.7% proforma (2) 3.3% 1.19 bn Gross margin holds up well Proforma operating margin up 10bp -1.6% 2012 2013 2014 2015 (1) Organic ex. Petrol, ex. calendar (2) Proforma excluding the integration of DIA, the increase in the tax on retail sales areas and the transfer to Carmila of rental income from shopping malls 9
OTHER EUROPEAN COUNTRIES: FURTHER INCREASE IN PROFITABILITY Net sales Organic growth (1) ROI Operating margin ROI up 33.4%, 70bp improvement in operating margin 2.5% 2.9% Improved sales trend in H2 +1.2% 19.7 bn 2.0% 2.2% 567 m Increased profitability in all countries -0.3% -2.5% -2.8% Continued action plans in all countries 2012 2013 2014 2015 (1) Organic ex. Petrol, ex. calendar 10
LATIN AMERICA: ANOTHER YEAR OF STRONG GROWTH Net sales Organic growth (1) ROI Operating margin Strong sales growth in Latin America despite a more difficult environment +18.1% +15.7% 4.7% 4.9% +12.5% +12.3% 14.3 bn 4.3% 4.5% 705 m Gross margin Improvement +23.5% increase in ROI (at constant exch. rates), marking the 5 th consecutive year of growth in the zone 2012 2013 2014 2015 (1) Organic ex. Petrol, ex. calendar 11
ASIA: REPOSITIONING OF THE OPERATING MODEL IN CHINA, GROWTH IN TAIWAN Net sales Organic growth (1) ROI Operating margin 2.8% Robust gross margin 2.0% +0.2% +2.2% 1.5% 13 m 0.2% Repositioning of our operating model in China -1.8% 6.7 bn -9.5% Resumption of growth in Taiwan 2012 2013 2014 2015 (1) Organic ex. Petrol, ex. calendar 12
A WELL-BALANCED FOOTPRINT WITH SEVERAL GROWTH ENGINES Breakdown of 2015 net sales Breakdown of 2015 ROI Solidity in France 19% 29% Recovery in Europe 8% 47% 1% 47% Growth in Latin America 26% 23% Repositioning of the operating model in China and return to growth in Taiwan France Europe ex. France Asia Latin America 13
DROP IN NET INTEREST EXPENSES (in m) 2014 2015 Recurring operating income 2,387 2,445 Net income from associates and joint ventures 37 44 ROI including associates and joint ventures 2,423 2,489 Non-recurring income 264 149-257 -16 2014: Mainly due to capital gains linked to the asset contribution for the creation of Carmila 2015: Mainly due to restructuring costs in several countries (notably in China and France) EBIT 2,572 2,232 Net financial expenses -563-515 Net interest expense -399-347 Other net financial expenses -164-168 Drop in net interest expenses, reflecting refinancing redemptions at lower interest rates 14
GROWTH IN ADJUSTED NET INCOME, GROUP SHARE (in m) 2014 2015 Income before taxes 2,010 1,717 Income tax -709-597 Effective tax rate 35.3% 34.8% Net income from continuing operations 1,300 1,120 Minority share of net income from continuing operations -118-143 Net income from continuing operations, Group share 1,182 977 Net income from discontinued operations, Group share 67 4 Net income, Group share 1,249 980 Adjusted net income, Group share 1,040 11,113 113 +7.1% Mainly adjusted for non-recurring income 15
CONSISTENCY IN INVESTMENT POLICY: 2.4bn IN 2015 Breakdown of 2015 investments by region Breakdown of 2015 investments by nature Continued program to bring stores up to standards 9% 22% 24% 45% 37% 15% 22% 26% Multi-format expansion, as illustrated by Atacadao Investments in IT simplification and omni-channel roll-out France Europe ex. France Expansion Remodelling First year of the transformation plan of DIA stores in France Asia Latin America Maintenance IT 16
STABILIZATION OF INVESTMENTS, IN LINE WITH THE SECTOR Comparative evolution of investments as a % of net sales 2012-2015 Sector Carrefour 5 4 3 2 1 2012 2013 2014 2015 Source : Annual reports and Bloomberg for 2015 estimates Sector : Auchan, Ahold, Casino, Tesco, Walmart 17
FREE CASH FLOW OF CLOSE TO 1BN IN 2015 (in m) 2014 2015 Gross cash flow (excluding discontinued operations) 2,504 2,733 Change in working capital 19 81 Capital expenditures -2,411-2,378 Change in net payables to fixed asset suppliers -17 136 Asset disposals (business related) 124 104 Impact of discontinued operations 88 10 Free cash flow 306 687 Impact of exceptional items -358-265 Free cash flow from continuing operations, excluding exceptional items 664 951 (1) Free cash flow from continuing operations, excluding exceptional items 18
SHARPLY IMPROVED FREE CASH FLOW IN 2015 Change in free cash flow (continuing operations, excluding exceptional items) (in m) 62 m 153 m Increase of +287 m 229 m -93 m -64 m 951 m 664 m Free cash flow from continuing operations, excluding exceptional items 2014 Change Gross cash flow Change of WC Change of WC of payables to fixed asset suppliers Impact of exceptional items Others (1) Free cash flow from continuing operations, excluding exceptional items 2015 (1) Of which change in capital expenditures, change in business related asset disposals and change in discontinued operations 19
DROP IN NET DEBT IN 2015 Net debt (in m) 347 m 390 m 98 m 4,954 m 951 m 208 m 394 m 310 m Drop in net debt of 408 m 4,546 m Opening net debt Dividends paid by parent company Dividends paid to noncontrolling interests Cost of net financial debt Free cash flow Disposals of investments without change in control Disposal of shares held in treasury Exceptional items and other elements Closing net debt 20
IMPROVED CREDIT RATING AND EXTENDED DEBT MATURITY Debt redemption schedule (in m) 667 1,250 279 1,000 1,000 1,000 1,000 750 On February 3 rd 2015, issuance of a 750m bond with a maturity of 10.3 years and a 1.25% coupon On June 12 th 2015, 644m of bonds reached maturity 4,38% 2,44% 5,25% 1,75% 4,00% 3,88% 1,75% 1,25% 2016 2017 2018 2019 2020 2021 2022 2025 At end 2015, the average bond maturity increased by 0.1 year to 4.4 years 2015 issuance Average annual coupon 21
INCREASE IN PROPOSED DIVIDEND: 0.70 PER SHARE Dividend of 0.70 proposed to the General Shareholder s Meeting on May 17 th, 2016 Payout of 45% of adjusted net income, Group share, in line with our distribution policy Payment in shares or in cash 22
CONCLUSION
CONTINUED GROWTH MOMENTUM IN 2015 Strong sales growth Sales up 3.0% on an organic basis Growth on an already strong base in 2014 Solid profit growth +7.0% growth in Recurring Operating Income at constant exch. rates and +11.5% proforma +7.1% growth in adjusted net income, Group share Strong improvement in free cash flow 2016 Outlook Total investments between 2.5bn et 2.6bn Constant focus on free cash flow generation Continued strict financial discipline: Maintain BBB+ rating 24
APPENDIX
2015 INCOME STATEMENT (in m) 2014 2015 Variation at current exch. rates Net sales 74,706 76,945 +3.0% Net sales, net of loyalty 74,097 76,393 +3.1% Other revenues 2,221 2,464 +10.9% Total revenues 76,318 78,857 +3.3% Cost of goods sold -59,270-60,838 Gross margin 17,049 18,019 +5.7% SG&A -13,281-14,105 Recurring Operating Income before D&A (EBITDA) (1) 3,803 3,955 +4.0% Depreciation & Amortization -1,381-1 470 Recurring Operating Income (ROI) 2,387 2,445 +2.4% Recurring Operating income(roi) including associates and joint ventures 2,423 2,489 Non-recurring expenses 149-257 EBIT 2,572 2,232 Net financial expenses -563-515 Income tax -709-597 Minority share of net income from continuing operations -118-143 Net Income from continuing operations, Group share 1,182 977 Net Income from discontinued operations, Group share 67 4 Net Income, Group share 1,249 980 Adjusted net income, Group share 1,040 1,113 (1) Recurring operating income before depreciation and amortization (including supply chain depreciation) 26
RECURRING OPERATING INCOME m 2014 Restated 2015 Variation at current exch. rates Variation proforma 1 France 1,271 1,191-6.4% +1.8% Other European countries 425 567 +33.4% +34.2% Europe 1,697 1,758 +3.6% +9.9% Latin America 660 705 +6.9% +23.5% Asia 97 13-87.0% -87.6% Emerging countries 757 718-5.2% +9.2% Global functions -67-31 Recurring Operating Income 2,387 2,445 +2.4% +11.5% (1) Adjusted for the integration of DIA, the increase in the tax on retail sales areas and the transfer to Carmila of rental income from shopping malls 27
ADJUSTED NET INCOME, GROUP SHARE m 2014 2015 Variation Net Income from continuing operations, Group share 1,182 977-17.4% Restatement for non recurring income and expenses (before tax) -149 257 Restatement for exceptional items in net financial expenses 3 65 Tax impact (1) -10-159 Restatement on share of income from minorities and companies consolidated by the equity method 14-27 Adjusted Net Income, Group share 1,040 1,113 +7.1% (1) Tax impact of restated items (non recurring income and expenses and financial expenses) and non recurring tax items 28
EARNINGS PER SHARE per share 2014 2015 Net income from continuing operations 1.67 1.35 Net income from discontinued operations 0.09 0.00 Net Income, Group share 1.77 1.36 Adjusted Net Income, Group share 1.47 1.54 Weighted average number of shares pre-dilution (in millions) (1) 707.4 723.1 (1) There was no dilutive impact in 2014 or 2015 29
STORES UNDER BANNERS (INCL. FRANCHISEES AND PARTNERS) AT END 2015 Hypermarkets Supermarkets Convenience Cash & Carry TOTAL France 242 1,003 4,263 142 5,650 Spain 173 126 419 718 Belgium 45 441 267 753 Italy 59 441 583 18 1,101 Poland 84 153 576 813 Romania 29 110 53 192 Other 99 825 566 1,490 Other Europe 489 2,096 2,464 18 5,067 Argentina 79 126 383 588 Brazil 225 42 21 288 Latin America 304 168 404 0 876 China 228 8 236 Taiwan 63 20 83 Other 78 9 87 Asia 369 29 8 0 406 Other (1) 77 166 42 12 297 TOTAL 1,481 3,462 7,181 172 12,296 (1) Maghreb, Middle East and Dominican Republic 30
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.