Carrefour Sa · EURONEXT:CA
Carrefour Sa — H1 2014 Earnings Presentation
24 slides from Carrefour Sa's earnings presentation, Jul 31, 2014
Slide 1: Half Year Results July 31st, 2014
HALF YEAR RESULTS JULY 31ST, 2014 1
Slide 2: Introduction
INTRODUCTION GEORGES PLASSAT 2
Slide 3: Financial Results
FINANCIAL RESULTS PIERRE-JEAN SIVIGNON 3
Slide 4: Solid growth in first half 2014 earnings
SOLID GROWTH IN FIRST HALF 2014 EARNINGS Change Change at constant at current (in €m) H1 2013 H1 2014 (1) rates rates Net sales 36,446 35,870 +3.4% -1.6% Net sales ex. petrol 32,480 32,119 +4.3% -1.1% Gross margin 7,986 8,071 +6.7% +1.1% EBITDA (2) 1,488 1,515 +6.6% +1.8% EBITDA margin 4.1% 4.2% +10
Slide 5: Strong organic sales growth
STRONG ORGANIC SALES GROWTH Change in H1 2014 sales (in €bn and %) + 1.0 % + 4.3 % - 0.9 % + 3.3 % + 0.1 % + 3.4 % 38.0 €bn 37.7 €bn - 1.6 % 36.4 - 5.0 % €bn 35.9 €bn H1 2013 Like for like Openings/ H1 2014 Petrol Acquisitions/ H1 2014 Currencies H1 2014 closings ex. petrol effect disposals net sale
Slide 6: Gross margin growth
GROSS MARGIN GROWTH Change Change at constant at current (in €m) H1 2013 H1 2014 rates rates Net sales 36,446 35,870 +3.4% -1.6% Gross margin 7,986 8,071 +6.7% +1.1% Gross margin % 21.9% 22.5% +60 bp • Gross margin up in value and as a percentage of sales • Improvement in all zones as a result of ac
Slide 7: Operating costs under control
OPERATING COSTS UNDER CONTROL Change Change at constant at current (in €m) H1 2013 H1 2014 rates rates Operating and asset costs 7,214 7,238 +5.9% +0.3% As a % of sales 19.8% 20.2% +40 bp • Good control of operating costs in Europe • Wage inflation in Latin America • Continued expansion in China • S
Slide 8: France: another half-year of improved profitability
FRANCE : ANOTHER HALF-YEAR OF IMPROVED PROFITABILITY (in €m) H1 2013 H1 2014 Change Net sales 16,947 17,005 + 1.9 %(1) Recurring Operating Income 482 515 +6.9% Operating margin % 2.8% 3.0% +20 bp • Recurring Operating Income of €515m, up +6.9% an improvement in operating margin of +20 bp – Further r
Slide 9: Other European countries: further improvement in profitability
OTHER EUROPEAN COUNTRIES: FURTHER IMPROVEMENT IN PROFITABILITY (in €m) H1 2013 H1 2014 Change Net sales 9,176 9,173 - 0.1 %(1) Recurring Operating Income 36 43 +19.1% Operating margin % 0.4% 0.5% + 10 bp • Recurring Operating Income of €43m, up +19.1% – Improved gross margin while maintaining compet
Slide 10: Latin America: very strong growth in sales and profitability
LATIN AMERICA: VERY STRONG GROWTH IN SALES AND PROFITABILITY Change Change at constant at current (in €m) H1 2013 H1 2014 rates rates Net sales 6,953 6,454 + 16.8 %(1) -7.2% Recurring Operating Income 217 247 +33.2% +13.4% Operating margin % 3.1% 3.8% +70 bp • Strong Recurring Operating Income growt
Slide 11: Asia: continued expansion
ASIA: CONTINUED EXPANSION Change Change at constant at current (in €m) H1 2013 H1 2014 rates rates Net sales 3,370 3,237 + 0.2 %(1) -3.9% Recurring Operating Income 98 83 -11.9% -15.2% Operating margin % 2.9% 2.6% -30 bp • Recurring Operating Income of €83m, down -11.9% at constant rates – Gross mar
Slide 12: Growth in adjusted net income, Group share
GROWTH IN ADJUSTED NET INCOME, GROUP SHARE (in €m) H1 2013 H1 2014 In 2014: Mainly the capital gain Recurring operating income 772 833 from the contribution of assets linked to the creation of Carmila Non-recurring items 489 264 In 2013: Mainly the capital gain related EBIT 1,261 1,097 to the divest
Slide 13: Operating working capital at June 30th 2014
OPERATING WORKING CAPITAL AT JUNE 30TH 2014 Operating working capital (in days of COGS) H1 2013 H1 2014 Clients 3 3 Change largely explained by Latin America and promotional activity Inventories 34 37 around the football world cup, as well as the global relaunch of our non-food offer. Suppliers -57
Slide 14: Continued investments
CONTINUED INVESTMENTS Investment (in €m) H1 2013 H1 2014 424 France(1) 353 113 Other European countries 97 Latin America 129 220 Asia 42 61 • Investment up in all zones Total 620 818 • Continuation of the catch-up and renovation program • Resumption of expansion in France and acceleration in Latin A
Slide 15: Improvement in gross cash flow
IMPROVEMENT IN GROSS CASH FLOW 6 months 6 months (in €m) to June 30th, 2013 to June 30th, 2014 Gross cash flow excluding exceptional items (1) 1,229 1,252 Change in working capital -2,378 -2,488 Capital expenditures -620 -818 Change in net payables to fixed asset suppliers -98 -382 Asset disposals (
Slide 16: Net debt at June 30th 2014
NET DEBT AT JUNE 30TH 2014 6 months 6 months (in €m) to June 30th, 2013 to June 30th, 2014 Opening net debt (at December 31st) -4,320 -4,117 Free cash flow -2,240 -2,412 Acquisitions -35 -268 Disposals 539 82 Others 91 -68 Discontinued activities 441 0 Cash flow after investments & disposals -1,204
Slide 17: Improved credit rating and liquidity position
IMPROVED CREDIT RATING AND LIQUIDITY POSITION Debt redemption schedule (in €m) • On March 25th, rating upgrade from BBB to Maturities at June 30th, 2014 BBB+ by S&P Changes to maturities through the combined operations on July 15th, 2014 1,250 • On July 15th, issuance of a €1bn bond (8 years), along
Slide 18: Conclusion
CONCLUSION 18
Slide 19: Further growth momentum
FURTHER GROWTH MOMENTUM • Strong sales growth in H1 2014 Organic sales up +4.3% Strongest growth in the last 5 years • Recurring Operating Income up +13.8% at constant rates +7.8% in Europe (including France) +19.2% in Emerging Markets • Growth in adjusted net income, Group share, of +16.7% • Return
Slide 20: Appendices
APPENDICES 20
Slide 21: H1 2014 income statement
H1 2014 INCOME STATEMENT (in €m) H1 2013 H1 2014 % change Sales, net of taxes 36,446 35,870 -1.6% Sales, net of taxes and loyalty 36,159 35,564 -1.6% Other revenues 1,184 1,192 +0.7% Total revenues 37,342 36,757 -1.6% Cost of goods sold -29,357 -28,686 -2.3% Gross margin from current operations 7,98
Slide 22: Adjusted net income, Group share
ADJUSTED NET INCOME, GROUP SHARE (in €m) H1 2013 H1 2014 % change Net Income from continuing operations, Group Share 526 474 -9.8% Restatement for non recurring income and expenses (before tax) -489 -264 Restatement for exceptional items in net financial expenses 139 11 Tax impact (1) 70 40 Restatem
Slide 23: Stores under Group banners H1 2014
STORES UNDER GROUP BANNERS H1 2014 (INCL. FRANCHISEES AND PARTNERS) Hypermarkets Supermarkets Convenience Cash & Carry TOTAL France 236 958 3,624 140 4,958 Spain 173 119 192 484 Belgium 45 438 247 730 Italy 57 406 628 19 1,110 Poland 95 140 443 678 Romania 25 79 44 148 Other 89 487 301 877 Other Eur
Slide 24: Disclaimer
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 m