Regulatory News:

Carrefour (Paris:CA):

Alexandre Bompard, Chairman and Chief Executive Officer, declared: “2020 has been a year of commitment for Carrefour. That of our teams, mobilized in the service of our customers, who have successfully taken on immense sanitary, logistical and human challenges. That of our entire Group, which consistently maintains the same level of extreme sanitary vigilance and the same attention to its social and environmental responsibility.

2020 was also a decisive year for Carrefour. In a crisis which is accelerating changes underway, our Group reached a watershed. Three years ago, the Carrefour 2022 plan marked a first turning point for our Group. Three years of flawless roll-out of our transformation have established a growth model that is based on customer satisfaction and new consumer trends. Today, this model ensures the sustainable dynamism of our sales and the profitability of our Group, and allows us to generate significant financing capacity to continue our development. Our 2020 results are evidence of this.

We are confident for the future, and translate this confidence into new operational and financial commitments.”

Notes: (1) Since the beginning of the plan; (2) Based on NielsenIQ’s RMS data for total store value sales (excluding gas) for the 156-week period ending 27/12/2020 for the French total retail market (Copyright © 2021, NielsenIQ); (3) 2020 ROI includes income and expenses related to COVID-19 effects. Exceptional bonuses and similar benefits to Group employees (€128m in H1 2020) are accounted for under other non-current income and expenses; (4) 2019 comparison basis is restated for the IFRS IC decision on IFRS 16; (5) Net Free Cash Flow corresponds to free cash flow after net finance costs and net lease payments. It includes cash-out of exceptional charges; (6) With capex between €1.5bn and €1.7bn, vs. €1.2bn in 2020

2020 KEY FIGURES

(in €m)

2019
restated(1)

2020

Variation

Sales inc. VAT

80,672

78,609

+7.8% LFL

Recurring operating income (ROI)(2)

2,099

2,173

+16.4%, +€343m
(constant FX)

Recurring operating margin

2.9%

3.1%

+17bps

Operating income

1,071

1,686

+57.4% / +€615m

Adjusted net income, Group share

858

1,011

+17.9% / +€154m

Net Free Cash Flow(3)

324

1,056

+€732m

Net Free Cash Flow restated for exceptional items

1,045

1,594

+€549m

Net financial debt (at December 31)

2,615

2,616

-€288m (constant FX)

Notes: (1) 2019 restated for the IFRS IC decision on IFRS 16; (2) 2020 ROI includes income and expenses related to COVID-19 effects. Exceptional bonuses and similar benefits to Group employees (€128m in H1 2020) are accounted for under other non-current income and expenses (3) Net Free Cash Flow corresponds to free cash flow after net finance costs and net lease payments. It includes cash-out of exceptional charges

SOLID GROWTH MOMENTUM

A record commercial performance

Leader in the food transition for all and driven by the profound transformation it initiated in 2018, Carrefour is now on a sustainable growth path, posting solid performance, particularly in its key countries (France, Spain and Brazil).

In 2020, with like-for-like (LFL) sales growth of +7.8%, Carrefour achieved its best performance in at least 20 years:

  • In France (+3.6% LFL), all segments are growing: Hypermarkets (+1.0% LFL), supermarkets (+6.8% LFL) and convenience (+8.3% LFL)
  • Very good growth momentum was confirmed in Spain with +7.1% LFL
  • Brazil posted record LFL growth of +18.2%, driven by both Carrefour Retail (+19.6% LFL) and Atacadão (+17.6% LFL)

LFL growth

Q4 2020

 

FY 2020

Group

+8.7%

 

+7.8%

France

+5.5%

 

+3.6%

Hypermarkets

+3.9%

 

+1.0%

Supermarkets

+9.8%

 

+6.8%

Convenience

+5.9%

 

+8.3%

Spain

+6.0%

 

+7.1%

Brazil

+22.9%

 

+18.2%

Strong increase in customer satisfaction, an asset for future growth

The dynamic of sustainable growth relies on high levels of customer satisfaction.

  • In 2020, the Group's NPS® increased by +12 points, after +8 points in 2018-2019
  • At +20 points since the beginning of the plan, the Group is already close to its initial target of +23 points for 2018-2022 and thus raises its ambition to +30 points
  • In France, NPS® increased by +16 points in 2020, including +17 points in hypermarkets and +18 points in supermarkets
  • The improvement in NPS® notably reflects a better price perception, operational excellence and constant attention to customers

Strategic initiatives well aligned with current consumption trends

New consumption trends, well-identified in the Carrefour 2022 plan and amplified by COVID-19, support the Group’s growth momentum.

  • Decisive advance in food e-commerce in 2020: Growth of more than +70% in food e-commerce GMV to €2.3bn and ambition to reach €4.2bn by 2022 confirmed
  • Confirmation of the attractiveness of organic products: A leading player in this market, Carrefour posted revenue growth of +18% in 2020 to €2.7bn and confirms the objective of reaching €4.8bn by 2022. The Group took many initiatives, including the acquisition of the urban specialized banner Bio c’ Bon
  • Strong dynamism of Carrefour-branded products: growing faster than the market, +2 points of penetration to 29% of 2020 sales. As drivers of purchasing power and price image, they should keep growing and represent one-third of sales in 2022
  • Acceleration in growth formats(convenience, Cash & Carry and Supeco): With 1,874 openings at the end of 2020, Carrefour is on track to achieve its objective of opening 2,700 convenience stores between 2018 and 2022

Targeted acquisitions, a source of additional profitable growth

Bolstered by its strong balance sheet, its commercial and operational know-how and its strengthened market positions, Carrefour is positioned as a natural consolidator in the markets in which it is present. The Group is more attentive than ever to opportunities for moderate-sized acquisitions, offering perfect complementarity with its existing activities. The transactions announced during 2020 and carried out under attractive financial conditions are a perfect illustration of this strategy.

  • Supersol: 172 supermarkets and convenience stores in Spain; completion expected in H1 2021
  • Makro: 30 cash & carry stores in Brazil; partially completed (25 stores acquired, of which 6 already converted at end-2020)
  • Wellcome: 224 convenience stores in Taiwan; completed on December 31, 2020
  • Bio c’ Bon: 107 city center organic stores in France; acquired in November 2020
  • Potager City, Dejbox and Bioazur completed in 2020

While remaining very selective, this targeted acquisition policy constitutes an additional source of profitable growth. The acquisitions announced in 2020, for an enterprise value of c.€760m, should contribute more than 2% of additional sales on a full-year basis.

STEADY IMPROVEMENT IN PROFITABILITY

Continuous cost savings momentum

Since 2018, the transformation dynamic has been accompanied by a culture of operational excellence and financial discipline. Carrefour thus achieved €3.0bn in annual savings in 2020 and has set itself a new target of an additional €2.4bn on an annual basis by 2023.

Carrefour is thus continuing to improve its purchasing conditions, both for goods for resale and not for resale, and continues to strengthen operational efficiency in stores and logistics, by relying on massification and process redesign.

Steady growth in operating income

Commercial momentum in retail activities is reflected today in robust operating leverage and an increase in recurring operating income from retail activities of c. +€630m at constant exchange rates in 2020. This virtuous growth should continue and thus drive steady improvement in profitability going forward.

In food e-commerce, the strong increase in volumes and better productivity are leading to a structural improvement in the business model. Food e-commerce growth contributed in 2020, and will continue to contribute, to the improvement in ROI and operating margin.

STRONG CASH GENERATION

Efficient investment policy and steadily reducing inventory

Selectivity and productivity efforts enable good control of the level of capex, while maintaining the quality of assets and the implementation of numerous development projects (notably in expansion and digital). In 2020, capex were reduced to €1,241m in the context of the sanitary crisis. Annual capex should amount to between €1.5bn and €1.7bn in the coming years.

The regular drop in the level of inventory also attests to the strong financial discipline.

Net Free Cash Flow1 objective from 2021 onwards

Good commercial momentum, combined with financial discipline, enabled the generation of Net Free Cash Flow of €1,056m in 2020, up +€732m compared to 2019.

Confident in its model of sustainable and profitable growth, Carrefour announces an objective of generating annual Net Free Cash Flow in excess of €1bn2 from 2021, after payment of exceptional charges.

NORMALIZED DIVIDEND POLICY

After almost ten years of offering the option of a scrip dividend, Carrefour is now in a position to normalize its dividend policy.

Hence, the proposed dividend for the 2020 financial year is 0.48 euro per share. It will be paid fully in cash and is subject to the approval of the General Meeting of May 21, 2021.

The ordinary dividend, paid in cash, is expected to grow regularly.

CAPITAL ALLOCATION POLICY

In line with its ambitions of responsible and sustainable growth and Net Free Cash Flow generation, Carrefour has defined a capital allocation policy including:

  1. Investments in business and customer offer, serving the “raison d’être”
  2. An ordinary dividend, fully paid in cash, and intended to grow regularly
  3. A bolt-on M&A strategy
  4. A solid investment grade rating
  5. Potential share buy-backs or equivalent

While continuing its investments to better serve its customers, Carrefour aims to combine a robust balance sheet, enabling it to seize acquisition opportunities, financial efficiency and shareholder return.

________________________

1

Net Free Cash Flow corresponds to free cash flow after net finance costs and net lease payments. It includes cash-out of exceptional charges

2

Including normalized capex between €1.5bn and €1.7bn vs. €1.2bn in 2020. See appendix for further details on assumptions

CARREFOUR, A COMMITTED COMPANY

Exceptional mobilization in the face of the crisis

Faced with the COVID-19 pandemic, Carrefour teams have demonstrated exceptional responsiveness to ensure the continuity of food distribution, and then meet new consumer expectations in a complex and rapidly-changing environment.

The Group immediately implemented strong measures to protect the health of employees and customers. Carrefour continues to adapt to the new sanitary provisions and rules recommended by public authorities in each country. The integrated stores and warehouses have been certified by the local health security agencies, notably in France, Spain and Brazil, attesting to the high level of protection.

Social and societal responsibility measures

In a responsible business approach, exceptional bonuses and similar benefits were paid to field staff in 2020, for a total amount of €128m.

At the same time, the Chairman and CEO, the members of the Board of Directors and of the Executive Committee waived part of their remuneration in 2020. The corresponding sums were allocated to financing solidarity actions for Group employees.

In a labor market impacted by the sanitary crisis, Carrefour is committed to youth employment and equal opportunities. The Group plans to recruit 15,000 young people in France in 2021. This represents 50% more than in 2020. Half of these recruitments will benefit young people from disadvantaged neighborhoods, in particular the priority areas known as “Quartiers de la Politique de la Ville”.

2020 CSR and food transition index at 115%

In 2020, the CSR and Food Transition index, which measures the performance of the implementation of Carrefour’s commitments, reached 115%, after 114% in 2019.

The results of the index exceeded expectations, notably for two commitments for which the Group has raised its objectives in 2020:

  • Packaging reduction: -6,154 tons since 2017. Doubling of the objective to -20,000 tons by 2025, including -15,000 tons of plastic
  • CO2 emissions reduction: -9% in 2020 vs 2019. New target of reduction of CO2 emissions of -30% in 2030 vs 2019 and -55% in 2040, approved by the Science Based Target initiative (SBTi)

In order to accelerate the fight against deforestation, Alexandre Bompard has assumed leadership of an international coalition of 18 manufacturers and retailers that is acting by involving all players in the supply chain.

The rate of female representation in management positions increased in 2020 (+0.4 point for senior managers, +0.5 point for managers). Carrefour also obtained in 2020 GEEIS certification, in order to promote professional equality and diversity, in all countries.

External extra-financial indices recognize the Group’s good performance: Carrefour is ranked the number one French retailer for its CSR commitments in the Dow Jones Sustainability Index (DJSI) World and in the Carbon Disclosure Project (CDP).

Measures in response to the tragic event in Porto Alegre

Diversity and inclusion are among Carrefour's major commitments. In all countries where the Group operates, equal opportunities and a culture of respect are promoted and translated into concrete actions.

Nothing is more foreign to Carrefour's values ​​than the odious acts of violence that took place in Porto Alegre, where a client of a Group hypermarket, Joao Alberto Silveira Freitas, was killed on November 19, 2020 by subcontracted security guards.

Beyond supporting the family of Mr. Silveira Freitas and seeking that those responsible are brought to justice, Carrefour Brazil immediately took strong measures to prevent the repetition of such acts and to combat systemic racism. An audit was launched to thoroughly review the training policies for employees and subcontractors in terms of security and respect for diversity and the values ​​of tolerance. This audit was followed by an action plan, defined with a fully independent External Committee for Freedom of Expression on Diversity and Inclusion, tasked with advising Carrefour Brazil in its actions against racism in its stores.

This action plan reinforces the actions already undertaken by Carrefour Brazil in the fight against racism over several years. It notably includes:

  • The internalization of store security
  • The inclusion in contracts of a clause to combat racism
  • Awareness-raising and training actions within the company (Diversity Day, workshops on unconscious bias, guide on diversity and inclusion for suppliers) and with civil society (signature of the “Entrepreneurial Coalition for Racial and Gender Equity”, institutional partnerships and sponsorship of forums in favor of diversity)
  • Promotion and recruitment goals that reflect the country’s diversity
  • The creation of a fund endowed with c. BRL 40m to promote diversity and fight racism
  • The donation of all the profits recorded on November 20, 2020 and Black Friday (November 26 and 27, 2020) to actions against racism

COMMERCIAL AND OPERATING PERFORMANCE BY REGION

France: Strongest growth in almost 20 years and ROI up +13.2%

In 2020, all segments grew and Carrefour experienced in H2 2020 its best half-year in terms of market share trends in 3 years1.

  • 2020 sales were up +3.6% LFL, including +1.0% in hypermarkets
  • Customer satisfaction improved significantly, with NPS® up +16 points in one year, including +17 points in hypermarkets and +18 points in supermarkets
  • The "TOP"2 operational efficiency project has been rolled-out to date in more than 130 hypermarkets and almost 20 supermarkets. It should be rolled out across the entire store network by the end of summer 2021

Q4 2020 sales are up +5.5% LFL (+5.4% LFL in food, +5.7% LFL in non-food). This quarter, market share increased +0.1 point and Carrefour outperformed in each of the benchmark channels: hypermarkets, supermarkets, convenience and Drive1.

  • In hypermarkets (+3.9% LFL in Q4), efforts made on operational excellence and customer satisfaction are bearing fruit and leading to a marked improvement in commercial dynamics
  • Supermarkets (+9.8% LFL in Q4) and convenience (+5.9% LFL in Q4) confirmed their solid momentum, significantly outperforming the market
  • Promocash’s activities remained particularly penalized by restaurant closures and the second lockdown
  • Food e-commerce grew by +58% in Q4

Recurring operating income for 2020 was up +13.2% (+€73m) to €629m, compared to €555m in 2019. Operating margin increased by +24bps to 1.8%. This reflects the excellent dynamics of retail activities, whose profitability is up c. +€160m. ROI for France was impacted to the tune of -€90m by the drop in the contribution of financial services and the sharp slowdown in the activities of services (travel agencies, ticketing, etc.) and Promocash.

Europe (ex France): Accelerating momentum, notably in Spain and Belgium

2020 sales growth improved sharply compared to previous years, at +3.5% LFL.

  • In Spain, strong NPS® growth and improving price perception underscore its continued enhanced attractiveness for consumers. Carrefour posted strong growth momentum in every quarter (+7.1% LFL in 2020)
  • Carrefour returned to market share gains in 2020 in Belgium and strengthened its price positioning

In Q4 2020, LFL growth reached +1.8%.

  • In Spain (+6.0% LFL), Carrefour is continuing its very good commercial momentum, in particular thanks to hypermarkets. Food e-commerce grew by +73%
  • In Italy (-7.6% LFL), performance was impacted by measures linked to COVID-19, in particular the closure of shopping malls hosting hypermarkets, and marked exposure to the northern region, which was particularly affected. In an encouraging sign, customer satisfaction and price image improved in all formats
  • In Belgium (+5.7% LFL), Carrefour has continued its uninterrupted market share gains since the start of the year. The Group is on the offensive and froze the prices of 20,000 products during the second lockdown
________________________

1

Based on NielsenIQ’s RMS data for total store value sales (excluding gas) for the 156-week period ending 27/12/2020 for the French total retail market (Copyright © 2021, NielsenIQ)

2

The “TOP” project changes the organization of tasks in the stores. It is structured around 3 teams: A Front team mainly in charge of shelving, a Scan team that ensures compliance with various management parameters (labels, expiration dates, shortage) and a Back team in charge of the organization of flows (storage management, routing of goods and equipment necessary for shelving)

  • In Poland (-4.2% LFL), the Group was penalized by the slowdown in inflation and its high exposure to stores located in shopping centers that were closed due to the health crisis. Carrefour has also made major price investments on 1,000 products in early 2021
  • In Romania (+1.6% LFL), Carrefour posted a very solid performance in a market impacted by travel restrictions, limiting the return to the country of workers abroad during the holiday season. The Group benefits in particular from its dominant position in food e-commerce

Europe’s recurring operating income rose to €698m in 2020, compared to €659m in 2019, an increase of +6.4% (+€42m) at constant exchange rates. Operating margin improved by +15bps to 3.3%. Almost all countries posted an increase in ROI. The profitability of retail activities increased by c.+€150m thanks to good commercial momentum and lower costs. ROI in Europe was impacted to the tune of -€110m by the drop in the contribution of financial services and the slowdown in sales to professionals.

Latin America: Another exceptional performance

In 2020, commercial momentum accelerated in Latin America, with LFL sales growth of +23.0%.

  • In Brazil, Carrefour’s ecosystem confirmed its attractiveness. The Group posted exceptional sales growth of +18.2% LFL
  • In Argentina, good commercial momentum continued with +49.3% LFL sales growth

In Q4 2020, Latin America sales were up +25.3% LFL.

  • Brazil continued its exceptional momentum with sales up +24.5% at constant exchange rates, with LFL growth of +22.9%, a contribution from openings of +3.9% and a negative petrol effect of -2.2%. The currency effect was an unfavorable -36.3%
    • Carrefour Retail posted its third consecutive quarter of double-digit growth, at +13.3% LFL. The high NPS® level demonstrates the strength of its positioning and highlights excellent execution. The Group continued to gain market share this quarter
    • Atacadão’s sales were up +32.4% at constant exchange rates, with like-for-like growth of +27.0% and a contribution from openings of +5.5%. Carrefour reinforced its price competitiveness, notably for B2B customers. With 14 openings and the conversion of 6 Makro stores, or 20 new stores over the year, expansion momentum continues. The remaining Makro stores will be gradually converted in H1 2021
    • Food e-commerce, recently enriched by a promising Atacadão platform, posted growth of +163% in the quarter
    • Financial services activities have improved since June; billings grew by +19.2% in Q4
  • In Argentina (+39.6% LFL), volumes increased and Carrefour gained market share

2020 recurring operating income of Latin America increased by +26.4% (+€220m) at constant exchange rates, to €786m. Operating margin increased by +25bps to 5.9%, reflecting a commercial strategy favoring volume growth.

  • The sharp increase in activity in Brazil was accompanied by increased cost discipline and greater operational efficiency. The profitability of retail activities improved by c.+€280m, offsetting the drop in the contribution from financial services of c. -€90m. Brazil ROI thus reached €764m, up +22.0% (+€184m) at constant exchange rates
  • Argentina’s ROI improved significantly and stood at €22m, with a €-25m impact from the application of IAS 29

Taiwan (Asia): Strengthened position

In Taiwan (Asia), 2020 sales were up +3.7% at constant exchange rates (+1.3% in Q4) and +1.2% LFL (+0.1% in Q4). Carrefour strengthened its position at the end of December with the completion of the acquisition of 224 Wellcome convenience stores. These stores will be converted to the Carrefour banner in H1 2021. Profitability improved again with ROI rising to €94m vs €83m in 2019, with an operating margin increasing to 4.5% from 4.2% in 2019. This increase reflected the good momentum of expansion and strict cost control.

2020 INCOME STATEMENT1

Full-year 2020 gross sales increased by +7.8% on a like-for-like basis. The Group's gross sales stood at €78,820m pre-IAS 29, an increase of + 4.4% at constant exchange rates.

Net sales amounted to €70,719m.

Gross margin stood at 21.8% of net sales, down -39bps, reflecting price investments, the temporary increase in logistics costs and the evolution of the integrated/franchisee mix, partly offset by purchasing gains.

Distribution costs were down -56bps to 15.9% of net sales, compared to 16.4% in 2019. They benefited from cost savings plans and include costs related to store openings and new services offered to customers, notably in digital.

Group EBITDA reached €4,465m, representing a margin of 6.3%, up +21bps.

Group Recurring operating income (ROI) reached €2,173m, up +€343m (+16.4%) at constant exchange rates (the currency effect was negative at -€269m, notably due to the depreciation of the Brazilian Real). Operating margin was up +17bps, to 3.1%.

The sharp rise in ROI (+€343m at constant exchange rates) reflected:

  • The good overall performance of retail activities (c. +€630m)
  • The decrease in the contribution of financial services (c. -€200m at constant exchange rates/c. -€240m at current exchange rates), notably from the increase in the cost of risk and the decrease in net banking income
  • The total impact of around -€80m of sanitary measures on the Group’s adjacent activities, notably services (e.g. travel agencies, ticketing) and sales to professionals (HoReCa) in Europe (including France)

Non-recurring income and expenses stood at €(474)m, vs €(1,030)m in 2019. It notably included the payment of exceptional bonuses and similar benefits to Group employees for an amount of €(128)m in H1. Restructuring charges were down to €(93)m, compared to €(549)m in 2019.

Net income, Group share stood at €641m. It includes the following items:

  • Net financial expenses of €(334)m, down -€18m from 2019
  • An income tax charge of €(498)m, compared to €(503)m the previous year. This charge reflects the increase in pre-tax income, offset by a drop in the normative tax rate to 30.1%2(compared to 31.4% in 2019)
  • Net income from discontinued operations, Group share of €(22)m. It amounted to €1,097m in 2019 with, notably, the capital gain on the sale of activities in China

Adjusted net income, Group share improved by + €154m to €1,011m compared to €858m in 2019.

________________________

1

2019 comparison basis is restated for the IFRS IC decision on IFRS 16

2

Excluding non-current income and taxes not assessed on pre-tax income

CASH FLOW AND DEBT1

Net Free Cash Flow2 stood at €1,056m in 2020, up +€732m compared to 2019.

  • This evolution notably reflects the increase in EBITDA of +€49m
  • It also includes the following elements:
    • The payment of exceptional bonuses and similar benefits to Group employees (€128m)
    • A lower cash-out for restructuring costs of €341m vs. €580m in 2019
    • The decrease in dividend paid by Carmila (€24m in 2020 vs. €73m in 2019)
    • An improvement of the change in working capital requirement by +€135m reflecting notably:
      • A dynamic activity
      • A decrease in the level of inventories
      • Lower tax payables as a result of lower petrol sales
      • A decrease in SG&A payables linked to cost reductions
    • A decrease in capex to €1,241m in 2020 compared to €1,725​m in 2019. Investments continue to benefit from selectivity and productivity measures and were reduced in the sanitary crisis context
    • A decrease in the cost of net financial debt by €43m thanks to better refinancing of bond issues

Net Free Cash Flow adjusted for exceptional items and discontinued operations stood at €1,594m, up +€549m compared to 2019.

Net financial debt decreased by €288m at constant exchange rates to €2,616m at December 31, 2020, compared to €2,615m at December 31, 2019. This change reflects the generation of Net Free Cash Flow of €1,056m, acquisitions for a total cash-out of €640m, the payment of dividends for an amount of €169m and other items (€41m).

Shareholders' equity, Group share, amounted to €9,795m at December 31, 2020, compared to €9,937m at December 31, 2019.

ENHANCED LIQUIDITY AND SOLID BALANCE SHEET

Since 2018, the Group has demonstrated great financial discipline and has strengthened its balance sheet and liquidity. Carrefour has one of the strongest balance sheets in the industry. This is an important asset in the current context, marked by rapid changes in food retail and the COVID-19 pandemic.

As of December 31, 2020, the Group was rated Baa1 negative outlook by Moody’s and BBB stable outlook by Standard & Poor’s.

The Group's liquidity was reinforced during the year by the bond issue closed in April for an amount of €1bn, maturing in December 2027. The success of this largely oversubscribed transaction attests to the great confidence of investors in the Carrefour signature.

In April, the Group repaid a bond in the amount of €802m.

In addition, Carrefour Brazil obtained bank financing in April for BRL 1.5bn over two and three years. At the end of December, the Brazilian subsidiary redeemed a bond maturing in April 2021, for an amount of BRL 1.0bn.

Finally, the Group has two bank credit facilities totaling €3.9bn, undrawn to date. In June 2020, these two facilities were the subject of a one-year maturity extension agreement, for 95% of the total amount, bringing their maturity to June 2025.

________________________

1

 

2019 comparison basis is restated for the IFRS IC decision on IFRS 16

2

 

Net Free Cash Flow corresponds to free cash flow after net finance costs and net lease payments. It includes cash-out of exceptional charges

OBJECTIVES

Carrefour reiterates the orientations of the Carrefour 2022 strategic plan and strengthens its commitments with additional objectives.

Operational objectives

  • Objective of Group NPS® improvement by 2022 raised to +30 points since the start of the plan (vs +23 points initially)
  • Target to reduce hypermarket sales areas by 350,000 sqm worldwide by 2022: Suspended in the context of the sanitary crisis
  • Target to reduce assortments by -15% by 2020: Achieved
  • Carrefour-branded products accounting for one-third of food sales in 2022
  • 2,700 convenience store openings by 2022

Financial objectives

  • €4.2bn in food e-commerce GMV in 2022
  • €4.8bn sales of organic product in 2022
  • Objective of €3.0 billion cost savings on an annual basis by end-2020: Achieved
  • €2.4bn in additional cost savings by 2023 on an annual basis (in addition to €3.0bn already achieved since the start of the plan)
  • Net Free Cash Flow at a level above €1bn per year from 2021 (after cash-out of exceptional charges, notably related to restructuring plans)
  • Annual level of capex of around €1.5bn to €1.7bn
  • €300m in additional disposals of non-strategic real estate assets by 2022

AGENDA

  • First-quarter 2021 sales: April 21, 2021
  • General Shareholders’ Meeting: May 21, 2021
  • Second-quarter and half-year 2021 sales: July 29, 2021

The Carrefour Board of Directors met on February 17, 2021 under the chairmanship of Alexandre Bompard and approved the consolidated financial statements for the 2020 financial year. These accounts have been audited and the certification report is being issued.

APPENDIX

FOURTH-QUARTER 2020 SALES INC. VAT

The Group's sales amounted to €20,975m pre-IAS 29. Foreign exchange had an unfavorable impact in the fourth quarter of -7.9%, largely due to the depreciation of the Brazilian Real and the Argentine Peso. Petrol had an unfavorable impact of -3.8%. The calendar effect was an unfavorable -0.1%. Openings contributed for +1.1%. The impact of the application of IAS 29 was -€86m.

Sales
inc.
VAT (€m)

 

Variation ex petrol ex
calendar

 

Total variation inc. petrol

LFL

Organic

 

At current
exchange
rates

At constant
exchange
rates

France

10,073

 

+5.5%

+3.8%

 

-2.6%

-2.6%

Hypermarkets

5,298

 

+3.9%

+3.0%

 

-3.2%

-3.2%

Supermarkets

3,332

 

+9.8%

+6.1%

 

-0.1%

-0.1%

Convenience/other formats

1,443

 

+2.0%

+2.0%

 

-5.9%

-5.9%

 

 

 

 

 

 

 

Other European countries

6,429

 

+1.8%

+2.1%

 

-0.3%

+0.4%

Spain

2,796

 

+6.0%

+6.4%

 

+2.3%

+2.3%

Italy

1,188

 

-7.6%

-8.7%

 

-10.0%

-10.0%

Belgium

1,198

 

+5.7%

+6.0%

 

+6.8%

+6.8%

Poland

590

 

-4.2%

-3.5%

 

-7.6%

-2.9%

Romania

656

 

+1.6%

+5.4%

 

+3.6%

+5.9%

 

 

 

 

 

 

 

Latin America (pre-IAS 29)

4,008

 

+25.3%

+28.5%

 

-10.7%

+26.5%

Brazil

3,417

 

+22.9%

+26.7%

 

-11.7%

+24.5%

Argentina (pre-IAS 29)

592

 

+39.6%

+39.6%

 

-4.6%

+38.8%

 

 

 

 

 

 

 

Asia

464

 

+0.1%

-1.0%

 

+0.2%

+1.3%

Taiwan

464

 

+0.1%

-1.0%

 

+0.2%

+1.3%

 

 

 

 

 

 

 

Group total (pre-IAS 29)

20,975

 

+8.7%

+8.6%

 

-3.5%

+4.4%

IAS 29(1)

(86)

 

 

 

 

 

 

Group total (post-IAS 29)

20,889

 

 

 

 

 

 

Note: (1) hyperinflation and currencies

2020 SALES INC. VAT

The Group's sales amounted to €78,820m pre-IAS 29. Foreign exchange had an unfavorable impact in 2020 of -6.8%, largely due to the depreciation of the Brazilian Real and the Argentine Peso. Petrol had an unfavorable impact of -3.6%. The calendar effect was a favorable +0.1%. Openings contributed for +1.2%. The impact of the application of IAS 29 was -€211m.

Sales
inc. VAT
(€m)

 

Variation ex petrol ex
calendar

 

Total variation inc. petrol

 

 

LFL

Organic

 

At current
exchange
rates

At constant
exchange
rates

 

 

France

37,937

 

+3.6%

+2.6%

 

-2.4%

-2.4%

 

Hypermarkets

19,126

 

+1.0%

+0.4%

 

-4.5%

-4.5%

 

Supermarkets

12,792

 

+6.8%

+4.7%

 

-0.2%

-0.2%

 

Convenience /other formats

6,020

 

+5.2%

+5.5%

 

0.0%

0.0%

 

 

 

 

 

 

 

 

 

Other European countries

23,606

 

+3.5%

+3.5%

 

+1.1%

+1.6%

 

Spain

10,013

 

+7.1%

+7.2%

 

+3.0%

3.0%

 

Italy

4,665

 

-5.2%

-6.6%

 

-7.6%

-7.6%

 

Belgium

4,509

 

+8.3%

+8.4%

 

+8.6%

+8.6%

 

Poland

2,093

 

-0.6%

-0.6%

 

-4.4%

-1.1%

 

Romania

2,327

 

+2.1%

+5.3%

 

+3.6%

+5.6%

 

 

 

 

 

 

 

 

 

Latin America (pre-IAS 29)

15,085

 

+23.0%

+26.3%

 

-8.4%

+24.5%

 

Brazil

12,711

 

+18.2%

+22.1%

 

-9.8%

+20.1%

 

Argentina (pre-IAS 29)

2,375

 

+49.3%

+49.0%

 

-0.2%

+48.9%

 

 

 

 

 

 

 

 

 

Asia

2,191

 

+1.2%

+4.3%

 

+6.7%

+3.7%

 

Taiwan

2,191

 

+1.2%

+4.3%

 

+6.7%

+3.7%

 

 

 

 

 

 

 

 

 

Group total (pre-IAS 29)

78,820

 

+7.8%

+8.1%

 

-2.4%

+4.4%

 

IAS 29(1)

(211)

 

 

 

 

 

 

Group total (post-IAS 29)

78,609

 

 

 

 

 

Note: (1) hyperinflation and currencies

Geographic breakdown of 2020 net sales and recurring operating income

 

Net sales

Recurring operating income

(in €m)

2019
restated(1)

2020

Variation
at constant
exchange
rates

Variation
at
current
exchange
rates

2019
restated(1)

2020

Variation
at
constant
exchange
rates

Variation
at current
exchange
rates

France

34,765

34,135

(1.8%)

(1.8%)

555

629

13.2%

13.2%

Europe (ex-France)

20,999

21,239

1.6%

1.1%

659

698

6.4%

5.9%

Latin America

14,665

13,245

22.6%

(9.7%)

833

786

26.4%

(5.7%)

Asia

1,968

2,100

3.7%

6.7%

83

94

9.8%

13.0%

Global functions

-

-

-

-

(32)

(33)

2.0%

2.7%

TOTAL

72,397

70,719

4.3%

(2.3%)

2,099

2,173(2)

16.4%

3.6%

Note: (1) 2019 restated for the IFRS IC decision on IFRS 16; (2) 2020 ROI includes income and expenses related to COVID-19 effects. Exceptional bonuses and similar benefits to Group employees (€128m in H1 2020) are accounted for under other non-current income and expenses

Consolidated income statement 2020 vs 2019

(in €m)

2019
published

2019
restated(1)

2020

Variation
at constant
exchange
rates

Variation at
current
exchange
rates

Net sales

72,397

72,397

70,719

4.3%

(2.3%)

Net sales, net of loyalty program costs

71,651

71,651

69,967

4.3%

(2.4%)

Other revenue

2,491

2,491

2,183

(3.7%)

(12.4%)

Total revenue

74,142

74,142

72,150

4.0%

(2.7%)

Cost of goods sold

(58,054)

(58,051)

(56,705)

4.5%

(2.3%)

Gross margin

16,088

16,091

15,445

2.5%

(4.0%)

As a % of net sales

22.2%

22.2%

21.8%

(38bps)

(39bps)

SG&A

(11,906)

(11,906)

(11,233)

0.3%

(5.7%)

As a % of net sales

16.4%

16.4%

15.9%

(63bps)

(56bps)

Recurring operating income before D&A (EBITDA)(2)

4,417

4,417

4,465

9.0%

1.1%

EBITDA margin

6.1%

6.1%

6.3%

27bps

21bps

Amortization

(2,093)

(2,086)

(2,039)

1.3%

(2.2%)

Recurring operating income (ROI)

2,088

2,099

2,173(3)

16.4%

3.6%

Recurring operating margin

2.9%

2.9%

3.1%

34bps

17bps

Income from associates and joint ventures

2

2

(13)

 

 

Recurring operating income including income from associates and joint ventures

2,090

2,101

2,160

 

 

Non-recurring income and expenses

(1,030)

(1,030)

(474)(3)

 

 

Operating income

1,060

1,071

1,686

 

 

Financial result

(338)

(352)

(334)

 

 

Finance costs, net

(214)

(214)

(171)

 

 

Net interests related to leases commitment

(107)

(121)

(113)

 

 

Other financial income and expenses

(17)

(17)

(50)

 

 

Income before taxes

722

719

1,351

 

 

Income tax expense

(504)

(503)

(498)

 

 

Net income from continuing operations

219

216

853

 

 

Net income from discontinued operations

1,092

1,092

(22)

 

 

Net income

1,311

1,308

831

 

 

of which Net income, Group share

1,129

1,126

641

 

 

of which continuing operations

32

29

663

 

 

of which discontinued operations

1,097

1,097

(22)

 

 

of which Net income, Non-controlling interests

182

182

190

 

 

of which continuing operations

187

187

190

 

 

of which discontinued operations

(5)

(5)

-

 

 

Net Income, Group share, adjusted for exceptional items

861

858

1,011

 

 

Depreciation from supply chain (in COGS)

(235)

(232)

(253)

 

 

Net Income, Group share, adjusted for exceptional items, per share

1.09

1.09

1.26

 

 

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

791

791

806

 

 

Notes: (1) 2019 restated for the IFRS IC decision on IFRS 16; (2) Recurring Operating Income Before Depreciation and Amortization (EBITDA) also excludes depreciation and amortization from supply chain activities which is booked in cost of goods sold; (3) 2020 ROI includes income and expenses related to COVID-19 effects. Exceptional bonuses and similar benefits to Group employees (€128m in H1 2020) are accounted for under other non-current income and expenses

Consolidated balance sheet

(in €m)

December 31, 2019
Restated(1)

December 31, 2020

ASSETS

 

 

Intangible assets

9,429

9,358

Tangible assets

11,370

10,505

Financial investments

2,753

2,384

Deferred tax assets

824

679

Investment properties

312

259

Right-of-use asset

5,050

4,506

Consumer credit from financial-service companies – Long-term

2,283

1,933

Other non-current assets

569

490

Non-current assets

32,590

30,115

Inventories

5,867

5,326

Trade receivables

2,669

2,526

Consumer credit from financial-service companies – Short-term

4,007

3,295

Tax receivables

838

608

Other current assets

738

788

Other current financial assets

252

368

Cash and cash equivalents

4,466

4,439

Current assets

18,837

17,349

Assets held for sale

37

124

TOTAL

51,464

47,588

LIABILITIES

 

 

Shareholders' equity, Group share

9,937

9,795

Minority interests in consolidated companies

1,736

1,502

Shareholders' equity

11,673

11,297

Deferred tax liabilities

655

467

Provision for contingencies

3,297

2,670

Borrowings – Long-term

6,303

6,305

Lease liabilities – Long-term

4,297

3,787

Bank loans refinancing – Long-term

1,817

1,506

Tax payables – Long-term

335

214

Non-current liabilities

16,703

14,949

Borrowings – Short-term

997

1,084

Lease liabilities – Short-term

941

936

Trade payables

13,646

12,560

Bank loans refinancing – Short-term

3,712

3,067

Tax payables – Short-term

1,095

1,039

Other current payables

2,649

2,617

Current liabilities

23,040

21,303

Liabilities related to assets held for sale

49

39

TOTAL

51,464

47,588

Note: (1) 2019 restated for the IFRS IC decision on IFRS 16

Consolidated cash-flow statement

(in €m)

2019
Restated(1)

2020

 

NET DEBT AT OPENING

(3,510)(2)

(2,615)

Gross cash-flow (continuing operations)

3,286

3,462

Change in working capital requirement

(149)

(14)

Impact of discontinued operations

109

(54)

Cash-flow from operations

3,247

3,395

Capital expenditure

(1,725)

(1,241)(3)

Change in net payables to fixed assets suppliers

99

(75)

Net asset disposals

98

145

Impact of discontinued operations

(33)

-

Free cash flow

1,686

2,223

Free cash flow excluding exceptional items and discontinued operations

2,229

2,761

Financial investments

(110)

(595)

Proceeds from disposals of subsidiaries

441

20

Others

208

(65)

Impact of discontinued operations

13

-

Cash flow after investments

2,238

1,583

Capital increase

75

1

Dividends paid

(223)

(170)

Cost of net financial debt

(214)

(171)

Operating leases payment incl. interests

(1,003)

(1,032)

Others

21

(212)

NET DEBT AT CLOSE

(2,615)

(2,616)

Notes: (1) 2019 restated for the IFRS IC decision on IFRS 16; (2) Finance lease liabilities recognized in accordance with IAS 17 were reclassified in lease commitments at January 1, 2019; (3) Restated for Makro

EBITDA to free cash flow bridge

(in €m)

2019
Restated(1)

2020

Variation

EBITDA

4,417

4,465

49

Income tax

(499)

(477)

22

Financial result (excl. cost of debt and interest related to leases obligations)

(17)

(50)

(33)

Cash impact of restructuring items and others

(614)

(475)

139

Gross cash flow (excl. discontinued)

3,286

3,462

176

Change in working capital requirement

(149)

(14)

135

Discontinued operations

109

(54)

(163)

Operating cash flow (incl. exceptional items and discontinued)

3,247

3,395

148

Capital expenditure

(1,725)

(1 241)(2)

484

Change in net payables to fixed asset suppliers

99

(75)

(174)

Net asset disposals (business-related)

98

145

46

Discontinued operations

(33)

-

33

Free cash flow

1,686

2,223

537

Free cash flow from continuing operations, excl. exceptional items

2,229

2,761

532

Exceptional items and discontinued operations(3)

(543)

(538)

5

Operating leases payment (incl. interests) (financial lease IAS 17) – Excl. China

(42)

(37)

5

Operating leases payment (incl. interests) net of financial sub-lease payment received – Excl. China

(927)

(959)

(31)

Operating leases payment (incl. interests) – China

(178)

-

178

Cost of debt

(214)

(171)

43

Net Free Cash Flow

324

1,056

732

Net Free Cash Flow from continuing operations, excl. exceptional items

1,045

1,594

549

Exceptional items and discontinued operations

(721) (4)

(538)

183

Notes : (1) 2019 restated for the IFRS IC decision on IFRS 16; (2) Restated for Makro; (3) Discontinued operations, restructuring (€341m in 2020 vs €580m in 2019), payment of exceptional bonuses and similar benefits to Group employees (€128m in 2020), Cargo capex cashed out (€35m in 2019) and others; (4) €(721)m = €(543)m [Exceptional items and discontinued operations(3)] + €(178)m [Operating leases payment (incl. interests) – China]

Change in shareholders’ equity

(en €m)

Total
shareholders'
equity

Shareholders'
equity,
Group share

Minority
interests

At December 31, 2019 (restated)(1)

11,673

9,937

1,736

2020 total net income

831

641

190

Other comprehensive income/(loss), after tax

(1,061)

(726)

(335)

Dividends

(166)

(57)

(108)

Impact of scope and others

20

0

20

At December 31, 2020

11,297

9,795

1,502

Note: (1) 2019 restated for the IFRS IC decision on IFRS 16

Net income, Group share, adjusted for exceptional items

(en €m)

2019
Restated(1)

2020

Net income, Group share

1,126

641

Restatement for non-recurring income and expenses (before tax)

1,030

474

Restatement for exceptional items in net financial expenses

23

29

Tax impact(2)

(106)

(147)

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

(17)

-

Restatement on share of income from minorities

(100)

(8)

Restatement for net income of discontinued operations, Group share

(1,097)

22

Adjusted net income, Group share

858

1,011

Notes: (1) 2019 restated for the IFRS IC decision on IFRS 16; (2) Tax impact of restated items (non-recurring income and expenses and financial expenses) and exceptional tax items

Impact of COVID-19 pandemic on the 2020 financial statements

Impact in Income Statement: The costs incurred in connection with the Covid-19 health crisis were recognized in recurring operating income for 2020, including necessary costs relating to logistics or product distribution in stores or to customers’ homes, as well as costs relating to protecting the health of employees, customers and service providers.

In accordance with the Group's accounting principles, which have been applied consistently, exceptional bonuses and similar benefits were recognized in non-recurring expenses for a total amount of 128 million euros during the first half of 2020. These bonuses did not compensate employees for their work as such. Rather, they represented an act of corporate social responsibility, offering tax and employee benefits. The exceptional bonuses supplemented the usual components of fixed and variable compensation awarded to the employees concerned (in respect of overtime pay, various types of bonuses, profit-sharing, etc.), i.e., without replacing said components.

Others: For further detail, please refer to note 2.1 of the Consolidated Financial statements.

Application of IAS 29

The impact on Group sales is presented in the table below:

Sales incl. VAT (€m)

2019
pre-IAS 29(1)

LFL(2)

Calendar

Openings

Scope
and
others(3)

Petrol

2020 at
constant
rates
pre-
AS 29

Forex

2020 at
current
rates
pre-
IAS29

IAS 29(4)

2020 at
current
rates
post-IAS
29

Q1

18,819

+7.8%

+0.9%

+1.3%

-0.8%

-1.5%

+7.5%

-4.2%

19,445

(10)

19,435

Q2

19,974

+6.3%

-0.4%

+1.2%

-1.0%

-5.8%

+0.3%

-6.7%

18,710

(66)

18,644

Q3

20,199

+8.4%

-0.2%

+1.1%

-0.9%

-2.9%

+5.5%

-8.0%

19,690

(49)

19,641

Q4

21,743

+8.7%

-0.1%

+1.1%

-1.3%

-3.8%

+4.4%

-7.9%

20,975

(86)

20,889

FY

80,735

+7.8%

+0.1%

+1.2%

-1.0%

-3.6%

+4.4%

-6.8%

78,820

(211)

78,609

Notes: (1) Restated for IFRS 5; (2) Excluding petrol and calendar effects and at constant exchange rates; (3) Including transfers; (4) Hyperinflation and currencies

Application of IFRS 16

Comparative data for 2019 have been restated (indicated as “2019 restated” or “31/12/2019 restated”) in the consolidated financial statements as of December 31, 2020 to reflect the decision by the IFRS Interpretation Committee (IFRS IC) published in December 2019 on leases falling within the scope of IFRS 16 (cf. note 4 of the Consolidated Financial Statements).

Acquisitions and disposals in 2020

 

 

 

 

 

 

Acquisitions

Country

Announcement

Status

Completion date

Potager City

France

January 2020

Completed

January 2020

DejBox

France

January 2020

Completed

January 2020

30 Makro stores

Brazil

February 2020

Partially completed

Expected H1 2021

Wellcome

Taiwan

June 2020

Completed

December 2020

Supersol

Spain

August 2020

Signed

Expected H1 2021

Bio c’ Bon

France

November 2020

Completed

November 2020

Bioazur

France

October 2020

Completed

November 2020

Disposals

 

 

 

 

Rue du Commerce

France

November 2019

Completed

April 2020

60% of MarketPay

France

October 2020

Signed

Expected H1 2021

Objectives

End-2019

End-2020

Objective

Operational objectives

 

 

 

Improvement in the Group NPS® since the beginning of the plan

+8 points

+20 points

RAISED
+30 points by 2022

Sales of Carrefour-branded products

27% of sales
+2 points yoy

29% of sales
+2 points yoy

1/3 of sales by 2022

Convenience store openings

+1,042

+1,874

+2,700 by 2022

Financial objectives

 

 

 

Food e-commerce GMV

€1.3bn

€2.3bn

€4.2bn by 2022

Sales of organic products

€2.3bn

€2.7bn

€4.8bn by 2022

Cost-reduction plan

€2.0bn

First target of
€3.0bn achieved

ACHIEVED + NEW
Additional €2.4bn on an
annual basis by 2023

Net Free Cash Flow(1)

€0.3bn

€1.1bn

NEW
> €1bn/an

Capex

€1.7bn

€1.2bn

NEW
€1.5bn to €1.7bn/year

Disposals of non-strategic real estate assets

First target of
€500m achieved

€100m

€300m additional by 2022

Note: (1) Net Free Cash Flow corresponds to free cash flow after net finance costs and net lease payments. It includes cash-out of exceptional charges

CSR and food transition index at 115% in 2020

Carrefour's CSR and food transition index assesses Carrefour's annual extra-financial results. Designed to measure the performance of CSR policies over several years, the index sets an annual target for 17 indicators. The overall index score is a simple average of the scores for these 17 indicators.

Category

Objective

2019

2020

Score
2020

Products

 

 

 

106%

1. Organic agriculture

4.8 billion euros in sales of organic products by 2022

€2.3bn

€2.7bn

90%

2. Agroecology

10% Carrefour Quality Lines products within Fresh Products by 2022

6.6%

7.4%

101%

3. Sustainable fishing

50% of Carrefour fish sold from sustainable fishing by 2020

47%

44%

88%

4. Sustainable forests

Roll-out of a Sustainable Forests action plan deforestation-linked products by 2020

68%

83%

83%

5. Packaging

Save 10,000 tons of packaging by 2025 (since 2017)

3,460

6,154

168%

Stores

 

 

 

163%

6. Food waste

Reduce food waste by 50% by 2025 (vs. 2016)

-10%

-29%

191%

7. Waste

Recover 100% of waste by 2025

66.5%

66.2%

96%

8. CO2 emissions

Reduce CO2 emissions by 30% by 2030 vs. 2019 (scopes 1 & 2)

-

-9%

303%(1)

9. “Food transition superheroes”

2,000 employees identified as “food transition superheroes” in stores by 2020

870

2,286

114%

Customers

 

 

 

100%

10. Food transition

80% of customers think that Carrefour helps them enjoy a healthy and responsible diet alimentation by 2022

72%

77%

106%

11. Local products and purchasing

100% of countries roll out a program focused on local products and purchasing by 2020

44%

93%

93%

12. Act For Food program

100% of countries implement an annual Act for Food communication program

100%

100%

100%

13. Healthier Diet action plan

100% of countries rolling out a Healthier Diet action plan by 2020

56%

100%

100%

Employees

 

 

 

90%

14. Gender equality

40% women among those appointed to key positions by 2025
& 100% of countries roll out GEEIS certification by 2020

32%
78%

23%
100%

88%

15. Disability

Disabled employees to account for 4% of total Group employees by 2025

3.8%

3.6%

103%

16. Training

13 training hours per Group employee by 2025

12

8

69%

17. Health and safety in the workplace

100% of countries implement an action plan on health/safety/quality of life in the workplace by 2020

89%

100%

100%

Note: (1) The score is capped to 250% in the calculation of the index

Expansion under banners – Fourth-quarter 2020

Thousands of sq. m

Dec. 31
2019

Sept. 30
2020

Openings/
Store
enlargements

Acquisitions

Closures/
Store reductions/
Disposals

Q4 2020
change

Dec. 31
2020

France

5,475

5,469

+30

+35

-27

+38

5,507

Europe (ex Fr)

5,596

6,106

+78

-

-20

+59

6,165

Latin America

2,616

2,648

+39

+30

-0

+69

2,717

Asia

1,050

1,032

+3

-

-0

+3

1,035

Others(1)

1,379

1,422

+64

-

-1

+64

1,486

Group

16,116

16,677

+215

+65

-48

+232

16,910

Note: (1) Africa, Middle East and Dominican Republic

Store network under banners – Fourth-quarter 2020

N° of stores

Dec. 31
2019

Sept. 30
2020

Openings

Acquisitions

Closures/
Disposals

Transfers

Total Q4
2020 change

Dec. 31
2020

Hypermarkets

1,207

1,205

+8

-

-1

-

+7

1,212

France

248

248

-

-

-

-

-

248

Europe (ex France)

455

454

+3

-

-1

-

+2

456

Latin America

188

185

-

-

-

-

-

185

Asia

175

172

-

-

-

-

-

172

Others(1)

141

146

+5

-

-

-

-

151

Supermarkets

3,344

3,413

+55

+105

-14

+2

+148

3,561

France

1,071

1,074

+5

+105

-6

+1

+105

1 179

Europe (ex France)

1,798

1,850

+29

-

-7

+1

+23

1 873

Latin America

150

150

+1

-

-

-

+1

151

Asia

9

9

+1

-

-

-

+1

10

Others(1)

316

330

+19

-

-1

-

+18

348

Convenience stores

7,261

7,729

+155

+14

-69

-2

+98

7,827

France

3,959

3,970

+62

+14

-27

-1

+48

4,018

Europe (ex France)

2,646

3,113

+81

-

-37

-1

+43

3,156

Latin America

530

524

+10

-

-4

-

+6

530

Asia

68

65

+2

-

-1

-

+1

66

Others(1)

58

57

-

-

-

-

-

57

Cash & carry

413

428

+15

+6

-1

-

+20

448

France

146

147

-

-

-

-

-

147

Europe (ex France)

60

65

+4

-

-1

-

+3

68

Latin America

193

202

+7

+6

-

-

+13

215

Asia

-

-

-

-

-

-

-

-

Others(1)

14

14

+4

-

-

-

+4

18

Group

12,225

12,775

+233

+125

-85

-

+273

13,048

France

5,424

5,439

+67

+119

-33

-

+153

5,592

Europe (ex France)

4,959

5,482

+117

-

-46

-

+71

5,553

Latin America

1,061

1,061

+18

+6

-4

-

+20

1,081

Asia

252

246

+3

-

-1

-

+2

248

Others(1)

529

547

+28

-

-1

-

+27

574

Note: (1) Africa, Middle East and Dominican Republic

DEFINITIONS

Free cash flow

Free cash flow corresponds to cash flow from operating activities before net finance costs and net interests related to lease commitment, after the change in working capital, less net cash from/(used in) investing activities.

Net Free Cash Flow

Net Free Cash Flow corresponds to free cash flow after net finance costs and net lease payments.

Like for like sales growth (LFL)

Sales generated by stores opened for at least twelve months, excluding temporary store closures, at constant exchange rates, excluding petrol and calendar effects and excluding IAS 29 impact.

Organic sales growth

Like for like sales growth plus net openings over the past twelve months, including temporary store closures, at constant exchange rates.

Gross margin

Gross margin corresponds to the sum of net sales and other income, reduced by loyalty program costs and cost of goods sold. Cost of sales comprise purchase costs, changes in inventory, the cost of products sold by the financial services companies, discounting revenue and exchange rate gains and losses on goods purchased.

Recurring Operating Income (ROI)

Recurring Operating Income corresponds to the gross margin lowered by sales, general and administrative expenses, depreciation and amortization.

Recurring Operating Income Before Depreciation and Amortization (EBITDA)

Recurring Operating Income Before Depreciation and Amortization (EBITDA) also excludes depreciation and amortization from supply chain activities which is booked in cost of goods sold.

Operating Income (EBIT)

Operating Income (EBIT) corresponds to the recurring operating income after income from associates and joint ventures and non-recurring income and expenses. This latter classification is applied to certain material items of income and expense that are unusual in terms of their nature and frequency, such as impairment of non-current assets, gains and losses on sales of non-current assets, restructuring costs and provisions recorded to reflect revised estimates of risks provided for in prior periods, based on information that came to the Group’s attention during the reporting year.

® Net Promoter, Net Promoter System, Net Promoter Score, NPS and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc

DISCLAIMER

This press release 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 Universal Registration Document. These documents are also available in English 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.