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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%
LFL ex petrol, ex calendar
-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
% change at constant
FX
2018 Post-IAS 29
Net sales 16,042 14,007 -12.7% +11.0% 13,809
LFL ex petrol, ex calendar
+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
% change at constant
FX
Net sales 5,907 5,501 -6.9% -4.1%
LFL ex petrol, ex calendar
-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 255 496
Non-recurring income and expenses, net (1,310) (1,161)
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)
Non-recurring income and expenses, net (1,310) (1,161)
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
Variation at constant exch. rates
Variation at current exch. rates
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
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 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
Variation at constant exch. rates
Variation at current exch. rates
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)
Income tax expense (618) (539)
Minority interests (169) (216)
Net income from continuing operations, Group share (531) (259)
Net income from discontinued operations, Group share 1 (301)
Net income, Group share (531) (561)
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
Adjusted net income, Group share
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)
Income before taxes 255 496
Income tax expense (618) (539)
(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)
Net income, Group share (531) (561)
Adjusted net income, Group share 773 802
2018 RESULTS – 28/02/2019 (1) Recurring operating income before depreciation and amortization (including supply chain depreciation)
(in €m)
2017 reported 2018
Net income, Group share (531) (561)
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
Adjusted net income, Group share 773 802
Adjusted net income, Group share
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.