Institutional Presentation March, 2019
CARREFOUR BRASIL A LONG TRACK RECORD OF GROWTH IN BRAZIL
1975 1989 2007 2012 2014 2015 2016 2017 2018
First Carrefour Launch of the Acquisition of Partnership with First Carrefour Launch of Launch of Launch of hypermarket Carrefour Atacadão, Itaú Unibanco to Express First food Carrefour food Act for food in São Paulo credit card entry in retailer with Atacadão card develop Carrefour store in São pilot project e-commerce cash&carry Financial Solutions Paulo presence in all Atacadão 26 states of IPO in B3 stock +20 new Península Brazil and the exchange under (1) Launch of stores acquires a 10% Federal District Carrefour non- CRFB3 stake in food Launch of Carrefour Brasil e-commerce Launch of Drives and Market format Click&Collect
Note: (1) Península acquired an additional stake of 2% in 2015 2 GRUPO CARREFOUR: MULTIFORMAT AND OMNICHANNEL TO ADDRESS ALL CONSUMER NEEDS
MULTIFORMAT AND OMNICHANNEL Gas Station Cash&Carry Hipermarket Supermarket Compact Super Express E-Commerce and Drugstore
Weekly The broadest Everything under Weekly or daily Daily and Every day low price replenishment and Complementary assortment any one roof at the replacement emergency EDLP replacement services time, any place right price purchases purchases purchases and on any device
Stores 166 100 39 10 120 Gas Stations: 74 12M18 Drugstores:124 SKUs Up to 8,600 Up to 41,000 Up to 18,000 Up to 7,000 Up to 4,500 Up to 1,000,000 Average 6,400 m2 7,000 m2 1,600 m2 500 m2 190 m2 sales area
3 STRONG SALES AND EBITDA TRACK RECORD PROFITABLE GROWTH
GROSS SALES (R$ million) ADJUSTED EBITDA (R$ million and % of net sales)
CARG: 12% CARG: 15% 2014-2018 2014-2018
8.2% 56,343 7.5% 52,376 7.3% 7.4% 49,102 6.8% 4,183 42,702 33.3% 34.9% 36,434 35.7% 3,357 3,516 21.4% 35.0% 2,867 15.8% 20.6% 19.7% 35.5% 2,358 25.3% 26.8% 26.7% 30.7% 65.1% 66.7% 27.4% 64.3% 23.2% 65.0% 62.1% 60.5% 64.5% 51.5% 50.1% 47.3%
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Atacadão Retail Atacadão Retail Banco CSF
4 GRUPO CARREFOUR BRAZIL ¹
Sales GRP CRF Excl. Petrol
8.2% 10.9% 10.4% 8.3% 4.6% 4.9% 5.4% 5.4% 5.5% 5.3% 4.0% 6.0% 4.0% 5.0% 4.4% 5.5% 6.2% 4.5% 3.7% 5.1% 3.4% 1.1% 1.4% 0.4% 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18
LFL Expansion
CARREFOUR RETAIL ATACADÃO 14.9% 11.2% 9.9% 9.7% 4.5% 11.9% 8.4% 7.0% 6.0% 4.9% 5.6% 7.0% 5.0% 5.3% 5.4% 5.1% 5.0% 5.7% 2.3% 5.5% 6.7% -1.0% 1.6% 5.5% 1.8% 6.3% 7.4% 3.5% 4.9% 4.3% 6.2% 3.9% 3.6% 4.1% 2.4% 1.5% 2.5% 4.5% 2.0% 1.6% 2.2% 0.1% -0.1% 0.1% 0.8% -0.2% -0.7% 0.5% 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 LFL Expansion LFL Expansion
5 1 – Sum difference is due to calendar and maintenance effect; CONSISTENT ACCELERATION IN SALES AND EBITDA THROUGHOUT THE YEAR
SALES GROWTH¹ (R$bn) ADJUSTED EBITDA² (R$ million and % of net sales)
9.8% 9.1% 7.8% 10.2% 7.6% 7.1% 8.1% 6.1% 7.2% 7.5% 6.4% 5.5% 4.3% 4.5% 4.3% 4.0% 3.9%
3.9% 6.0% 1,415 5.8% 5.1% 991 3.6% 843 934 3.6%
0.5%
1Q18 2Q18 3Q18 4Q18 1Q18 2Q18 3Q18 4Q18
LFL Expansion Consolidated Atacadão Carrefour Retail
1 – Sum difference is due to calendar and maintenance effect; 2 – In order to make both years comparable, Q3 2017 Gross Profit and EBITDA have been adjusted downwards for 6-months ICMS-ST tax credits booked in Q3 and related to H1 2017. For Carrefour the adjustment of such tax credits was a decrease of R$ 22 millionin gross profit and EBITDA, respectively, while for Atacadão the reduction was of R$ 75 million in the same lines. These credits relate to the STF decision regarding presumed margin at the end of 2016 and recognized for the first time in September 2017, retroactively to January 1rst. Accumulated 9 months numbers are fully comparable. In Q4 and FY2018 Adjusted EBITDA includes ICMS-ST tax credits of R$210 million for states other than São Paulo at Atacadão
SOLID FREE CASH FLOW GENERATION AND NET INCOME GROWTH
FREE CASH FLOW (R$mm) NET INCOME – GROUP SHARE (R$mm)
1,599 1,660 1,174 1,290 766 1,092 1,052 528
288 2014 2015 2016 2017 2018
CAPEX (R$mm)
(638) 1,787 1,808 1,793 1,653 2014 2015 2016 2017 2018 1,593
2014 2015 2016 2017 2018
7 ONE OF THE BIGGEST IPOS OF BRAZIL IN THE LAST YEARS
Shareholder Structure
Grupo Carrefour Brasil raised up to R$ 5.1 billion(1) on July 20 at R$15.00 per share. This was one of the biggest IPOs in Brazil since 2013.
France Free Float Grupo Carrefour Brasil is among Brazil’s top 20 market 71.7% 8.9% 19.4% caps on B3.
Atacadão S.A.
1,983 m shares CCI Carrefour Soluções Financeiras The proceeds from the IPO strengthened Grupo Carrefour 100% 51% Brazil’s balance sheet, providing greater financial flexibility.
Carrefour Group remains Grupo Carrefour Brazil’s majority shareholder with about 72% participation.
Peninsula sold 2.55% via blocktrade on B3 at R$15.94 in November, 2018 reducing their stake to 8.9%. 8 “CARREFOUR 2022”- TRANSFORMATION PLAN
Deploy a simplified Achieve productivity and Create an omnichannel Overhaul and open organization competitiveness universe of reference the offer to promote gains food quality
Improve HQ efficiency Improve in-store productivity Hypermarket price repositioning Be a reference in fresh products across formats, including the Food e-commerce development Private label target to reach 15% Partnerships with specialists use of new technologies and sector leaders aiming to be national leader of FMCG and 28% of fresh Supply chain efficiency product sales Attract and develop talents Roll out of non-food e-commerce Improvement of direct and with the ambition of being among Local products share increase indirect purchases negotiation the Top 5 players in Brazil Grow share of local products Optimize asset portfolio Leverage CRM data and analytics Digital and store integration Open 20 Atacadão stores per year to consolidate leading market share Reach 2 million Atacadão cards by year end 2018
9 Sabor & Qualidade New brand of sustainable, socially responsible and traceable products. Private Label Assortment Review of the ingredients 1,700 health and of more than 400 items to organic products on the improve the nutritional same space content
What is Carrefour doing in Fruits and Vegetables Retailer with the highest Food recommended rate on Calves right use of agricultural Support to 450 pesticides producers for Transition sustainable production
Eggs Fish Sale of eggs from 100% Partnership with SeaFood Watch in the study of cageless hens by 2028 endangered species in Brazil BUSINESS UNITS
1 2 3 4 5 CASH AND CARRY RETAIL E-COMMERCE BANCO CSF PROPERTY
11 BUSINESS UNITS
1 2 3 4 5 CASH AND CARRY RETAIL E-COMMERCE BANCO CSF PROPERTY
12 ATACADÃO - BUSINESS MODEL LOW PRICE, LOW COST AND EFFICIENT OPERATION
WINNING MODEL L O W C O S T COMPETITIVENESS S I M P L E , F O C U S O N EXECUTION AND CLOSE RELATIONSHIPS . Spot negotiations with . Lean and efficient . Lowest price everyday (EDLP) suppliers, no contracts operations . Lean organization . High sales volume . Focus on basic products, . Rapid and organized . Culture of responsibility no specific loyalty to execution . Focused, efficient and among employees brands pleasant shopping experience . Simple and objective . Dissemination of low-cost . Strong commercial way of doing business mentality business model
13 ATACADÃO – STRONG EXPANSION: NATIONWIDE PRESENCE ABSOLUTE LEADER IN CASH&CARRY
1 Market Share 2018: 35%¹ 2018 1 3 4 2007 1 2 6 3 166 Stores 2 4 4 7 36 Stores 2 3 3 States + 1 3 3 26 8 14 1 New Atacadão stores since 9 States + 1 Federal District 2 1 7 2007 Federal District 5 3 4 2 51 <4 stores 17 <4 stores 1 12 ≥4 stores 2 ≥4 stores 7 ≥10 stores ≥10 stores 3 8 +130
CAGR: +19.1% GROSS SALES
34.1 37.6 26.1 31.5 5.5 16.9 18.9 22.1 7.5 9.6 12.1 14.0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 ADJUSTED EBIT CAGR: +22.3%
1,861 2,282 478 545 1,508 250 324 654 753 942 1,027 1,181
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 EBIT margin 5,4% 5,0% 5,6% 5,1% 5,2% 5,0% 5,5% 5,0% 5,0% 5,2% 6,0% 6,7%
14 Note: (1) Nielsen ATACADÃO - SOLID SALES PERFORMANCE AND PROFITABLE GROWTH DRIVEN BY STRONG EXPANSION AND LIKE-FOR-LIKE
Like-for-like growth (%) Gross sales (R$ million)
+17.3% +17.8% +21.1% +8.0% +10.2%
15.3% 37.6 31.6 34.1 26.1 9.1% 10.4% 22.1 3.6% 4.8%
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Adjusted Ebitda1 (R$ million and % of net sales) • Continuous volume gains, LFL growth above food inflation • LFL started to recover in 2018 as deflation ended in June 7.6% 6.9% 5.9% 5.8% 6.0% • Acceleration to 20 stores from 2018 onwards 2.596 2,127 • EBITDA doubled to R$2.6 bn in 4 years 1,730 1,390 1,192 ~6% historical EBITDA margin is now above 7.5% on recurring tax credits 2014 2015 2016 2017 2018
1 In Q4 and FY2018 Adjusted EBITDA includes ICMS-ST tax credits of R$210 million for states other than São Paulo at Atacadão 15 STRATEGIC PILLARS TO SOLID GROWTH AHEAD
Accelerate Leverage organic Atacadão expansion credit card (+20 stores p.y.)
Maintain the Solid financial commercial performance model - EDLP
16 BUSINESS UNITS
1 2 3 4 5 CASH AND CARRY RETAIL E-COMMERCE BANCO CSF PROPERTY
17 RETAIL - A ROBUST MODEL ACROSS THE CYCLE DESPITE ECONOMIC SLOWDOWN AND STRONG FOOD DEFLATION
Like-for-like growth ¹(%) Gross sales (R$ billion)
+4.3% +5.3% +5.4% +4.3% +2.6% 5.0% 17.5 18.3 18.8 3.9% 15.8 16.6 3.1% 1.8% 2.1%
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Adjusted Ebitda (R$ million and % of net sales) • Gross sales reflects expansion in proximity formats (Market and Express), end of food deflation and e-commerce performance which 6.4% represented ~10% of Carrefour sales in Q4 5.6% 5.8% 4.8% 5.9% 1,031 • EBITDA and EBITDA margin temporarily impacted by e-commerce 803 941 825 552 investments, World cup mix-effect, repositioning of SP hypermarkets and food deflation for half of the year
2014 2015 2016 2017 2018
1 – Ex-petrol 18 RETAIL: E-COMMERCE FAST GROWTH IN TOTAL SALES
5,041 5,213 4,643 4,496 4,501 4,356 4,485 4,405 722 702 724 683 642 676 692 712
5.8% 10.4% 3.3% 5.6% 7.0% 3.3% 3.9% 11.4% 7.0% 11.9% 12.3% 12.3% 12.2% 12.7% 12.4% 13.0%
82.8% 77.7% 84.5% 84.4% 83.4% 82.1% 80.6% 80.1%
1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 Hypermarket Other formats E-commerce Petrol
19 HYERMARKET: COMERCIAL OFFER REPOSITIONING IN 23 STORES
Background: Strong competitive environment in São Paulo, situation got worse over the last 3 years as a result of economic scenario
Answer: Adapt the hypermarket commercial proposition in São Paulo, with Adjustment of assortment Price reduction, with permanent decrease in prices of very price sensitive categories in food sector Concentrated Project in 23 stores in São Paulo, with intense communication in POS
20 SUPERMARKETS: TRADITIONAL MODEL IN LARGE CONSUMPTION POLES
39 stores located in São Paulo, Belo Horizonte 1 Brasília 6 stores and Brasília Belo Horizonte 17 stores
2 Complementary daily and weekly purchases focused in perishables and basic items
Stores located in high density residential 3 neighborhoods
São Paulo 16 stores
Total 39 stores
21 A NEW BRAND: MARKET
PROJECT HIGHLIGHT Target customers: A/B Venue: São Paulo city focus in residential verticalized neighborhood Assortment: ~7 thousand SKUs Size: 500 m² Supermarket First store: Vila Olímpia, launched in December, 2017 Weekly and daily needs purchases, providing delightful experience, with service excellence and reasonable assortment, guaranteeing feasibility and fair price
Proximity
Performance above expectations for Market LFL in proximity at double-digit in Q4 2018 9 openings in 2018
22 BUSINESS UNITS
1 2 3 4 5 CASH AND CARRY RETAIL E-COMMERCE BANCO CSF PROPERTY
23 DIGITAL TRANSFORMATION: NEW STRUCTURE
Financial Solutions, Client, Services and Digital Transformation
PAULA CARDOSO
CLIENT SERVICE DATA ONE BANK E-COMMERCE OMNICHANNEL & IT CARREFOUR ANALYTCS
24 E-COMMERCE: FASTEST-GROWING SEGMENT WITHIN CARREFOUR RETAIL
Carrefour GMV growth +110%
Market growth (E-BIT) +13%
Orders +77%
Visits +76% ~44 million
Average Ticket +19%
Marketplace SKUs ~2 million Marketplace Sellers ~1,500
Marketplace Penetration ~20% of GMV DIGITAL TRANSFORMATION INITIATIVES AT CARREFOUR
OMNICHANNEL DIGITAL EXPERIENCE PAYMENTS DATA AND ANALYTICS ONE CARREFOUR Partnership with First pilot of Launch of Google: Scan and Go Carina (chatbot ~3.6 MM additional Pilot with beacons in a Carrefour and AI) nov/18 registered clients with in-store app Express store Unified social push alerts for 196 with good App: 20% growth in Click&Collect media monitoring stores client nd represents ~10% of active clients in the 2 acceptance total 1P sales, cross- half, reaching 21% of and app sell with 1/3 of food e-commerce rating customers sales, with better look- and-feel
Drive service 56% new Expansion of QR code Google My offered in 10 clients in Business for store stores, reaching LIA to 18 stores payment specific – online view of MVP via performance 21% of food e- categories monitoring commerce orders store price and our app in and 85% availability Carrefour increase in stores spending in Digital loyal NFC segment in wallet the food MVP, with transition on-us and campaign off-us acceptance 2019 CeBB MAIN PRIORITIES
1. Take the lead in food e-commerce e-Business 2. Ecosystem – develop a Strong O2O platform (stores + online), accelerate with start-ups 3. Martech and data: leverage strongly the use of data and digital marketing 4. IT – Set up Carrefour lab with a light and agile infrastructure
OMNICHANNEL 1. Structure teams ACCELERATION 2. Governance, KPIs, business and customer BREAKING THE indicators WALLS 3. New way of working, new results 4. Test culture, learn and scale, fast
1. Startups OTHER KEY INVESTMENTS 2. Strategic Partnerships
15 E-COMMERCE NON-FOOD HIGHLIGHTS
Analytical Data (1P + 3P) GMV E-Commerce Evolution (1P) % Sales by region (12M 18’) in R$ million
456
2017 2018 1% 5% Visits (million) 76 127 257 252 218 243 5% Conversion Rate 1.4% 1.6% 146 79% 121 126 Orders (million) 1.1 2.0 10%
GMV 671 1,412 (BRL million) Q1 17 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18
2017 2018
28 E-COMMERCE: MARKETPLACE HIGHLIGHTS (3P)
GMV SELLERS AND SKUS (as % of total sales)
1,500 1,000 Sellers 19.0% 374 Sellers 1.6 million 16.0% Sellers 1 million SKU’s 13.5% 134 SKU’s Sellers 805k 75 SKU’s Sellers 11.0% 415k 192k SKU’s SKU’s 7.1% 31 12 Sellers Sellers 3.4% 57k 25k SKU’s SKU’s 0.6%
Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q2 17 Q3 17 Q4 17 Q1 18 Q2 18 Q3 18 Q4 18
2017 2018 SKU's Sellers
29 E-COMMERCE FOOD HIGHLIGHTS
CLIENT EXPERIENCE ASSORTMENT OPERATIONAL MODEL DARK STORE + 3 SIDESTORES
Located in Former All food categories, but Dedicated Brooklin, São Internal Brooklin with online selected inventory Paulo noble Picking assortment. area (A/B system store client) APP HYPER A/B “Meu Carrefour” Área de entrega: cidade de São Paulo (Oct/17) WEBSITE (Launch CATEGORY 02/15/18) TRANSPORTATION FRESH (Cheeses, butters, milks, yogurts…) (3 deliveries Windows per day) 4 hours range GROCERIES Pilot launching “Withdraw by Car” (Rice, Coffee, Pasta…) PERISHABLES (Sea food market, FLV…)
CLEANING Vans, Cars and Motorbikes Drive (Soap, softener,…) COSMETIC PACKAGING (Soap, Toilet paper…) BEVERAGES (Beers, Juices, Sodas PET (Dog and Cat feed, Accessories…)
9x orders since February/18 10 thousand SKU’s
30 BUSINESS UNITS
1 2 3 4 5 CASH AND CARRY RETAIL E-COMMERCE BANCO CSF PROPERTY
31 BANK CSF’S PROFITABILITY BACK ON TRACK... 2018 RECORD EBITDA
ADJUSTED EBITDA (R$MM)
New regulation on revolving customer 895 balances 743 692 634 557
2014 2015 2016 2017 2018
32 ATACADÃO CREDIT CARD IMPORTANT GROWTH DRIVE FOR THE BUSINESS WITH DEMAND ABOVE EXPECTATIONS
Only credit card accepted at Atacadão stores
Why launch it? . Be more competitive Atacadão credit card is currently . Sales elasticity (Average focused on individual and spending 40% higher with card) “mixed” clients Cards issued . Collect data for CRM
. Potential new customers for 1.6 Carrefour e-commerce (Non- 1.4 1.2 Food) 1.1 Lower intermediation fee 0.8 (MDR) and short payment 0.5 terms, equivalent to a debit card 0.0 0.1
Mar/17 Jun/17 Sep/17 Dec/17 Mar/18 Jun/18 Sep/18 Dec/18
33 CREDIT PORTFOLIO LEVERAGED BY ATACADÃO CARD
CREDIT PORTFOLIO (R$mm)
(R$M) Bacen methodology IFRS9
18% 8,382 22% 7,690 7,102 16% 8% 6,288 21% 5,431 5,034 22.7% 19.6% 19.9% 4,160 17.6% 16.9% 16.7% 13.4% 13.5% 13.5% 12.6% 12.5%
10.4% 9.8% 9.7% 1,813 1,931
768 867 794 938 462
2014 2015 2016 2017 2018 2017 2018 Outstanding Total Provision % Over 90 % Over 30 Coverage 11.1% 15.2% 16.0% 12.6% 12.2% 25.5% 23.0% Ratio
34 EXPENSE CONTROL RESULTS IN GREATER EFFICIENCY DESPITE ATACADÃO CREDIT CARD INVESTMENT
EXPENSES ( R $ M ) EFFICIENCY INDEX Including 921 Atacadão 789 Atacadão Credit Card 259 41.8% Carrefour 655 153 541 37.5% 37.8% 36.7% 486 636 429 441
31.9% 31.5% 32.1% 662 29.7% 27.6%
Only Carrefour 28.4% Credit Card 2012 2013 2014 2015 2016 2017 2018
7.1% 6.4% 7.0% 9.8% 7.1% 4.2% 4.4% Weighted inflation 2012 2013 2014 2015 2016 2017 2018
Carrefour Credit Card Consoliated CSF C A G R = 2012-2018 14% Atacadão Carrefour
35 BUSINESS UNITS
1 2 3 4 5 CASH AND CARRY RETAIL E-COMMERCE BANCO CSF PROPERTY
36 DIVERSIFIED PORTFOLIO OF REAL ESTATE ASSETS
3 Shopping 150 >300,000 m2 GLA1 11.5mn m2 (total area) malls Galleries under management
83% of GLA1 under >10 million ~ 2,000 lessees management is owned customers/month
1 Gross leasable area
37 ENHANCE SITE ATTRACTIVENESS BRINGING MORE STORES FROM KEY ACCOUNTS
KEY ACCOUNTS PRESENCE IN OUR GALERIES
QUANTITY OF CONTRACTS NUMBER OF GALLERIES
Galleries with Galleries without 2 or more stores from key 21.2% 23.9% 24.4% stores from accounts key accounts 38% 50% Key Accounts 78.8% 76.1% 75.6% General Partners 12% 2015 2016 2017 Galleries with at least, 1 store from key accounts Aiming at increasing the flow of customers, valuing the site for retail and all merchants in the gallery APPENDIX IPCA FOOD AT HOME¹
6.5% 4.6% 4.1%
4.3% 4.4% 4.5% 1.3% 3.0% 1.0% 3.3% 2.5% 2.2% 1.5% 1.1% 0.1% 0.3%
-2.8% -4.0% -0.6% -4.5% -5.1%
-3.9% -3.8% -3.8% -3.1% -4.3% -4.7%
-5.2% -5.1% -4.9% -5.3% -5.3%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2017 2018
1 – Source: IBGE 40 NET INCOME UP SHARPLY IN Q4 AND IN THE FULL YEAR ON SOLID OPERATING PERFORMANCE
QUARTER YEAR Strong finish to 2018 with acceleration in total sales performance in H2: +10.1% in Q4 2018 Q4 18 Q4 17 ∆% 12M 18 12M 17 ∆% (in R$ million) (R$14.4 billion), +7.3% in FY 2018 to R$51.3
Net Sales 14,375 13,053 10.1% 51,276 47,768 7.3% billion, maintaining leadership as Brazil’s largest food retailer
Gross Profit 3,390 2,847 19.1% 11,381 10,257 11.0% Adjusted gross profit +19.1% in Q4 2018 to Gross Margin 23.6% 21.8% +178bps 22.2% 21.5% +70bps R$3.4 billion, resulting in consolidated gross margin of 23.6%, an increase of 178bps, SG&A Expenses (1,980) (1,735) 14.1% (7,223) (6,765) 6.8% mainly as a result of R$210 million ICMS-ST tax SG&A of Net Sales 13.8% 13.3% +49bps 14.1% 14.2% -8bps credits for states other than São Paulo booked at Atacadão. In full-year 2018, gross profit was Adjusted EBITDA 1,415 1,118 26.6% 4,183 3,516 19.0% 11.0% higher at roughly R$11.4 billion, for
Adj. EBITDA Margin 9.8% 8.6% +125bps 8.2% 7.4% +76bps 22.2% gross margin.
Net Financial Result (104) (65) 60.2% (362) (660) -45.2% Adjusted Net income, Group share, up 65.9% to R$758 million in Q4 (net margin of 5.3%, up Adj. Net Income, Group 758 457 65.9% 1,879 1,289 48.1% Share 177bps) and up 48.1% in full-year 2018 to R$1.9 billion (net margin of 3.7%, up 101bps). Adj. Net Margin 5.3% 3.5% +177bps 3.7% 2.7% +101bps SOLID OPERATING PERFORMANCE AND CASH FLOW GENERATION ALLOWS FOR HIGHER DIVIDENDS
2018 Net adjusted Income Cash flow generation 2018 R$1.9 billion R$1.3 billion +48% vs. 2017 (vs. R$1.1 billion 2017)
Payout : 25% of Adjusted Net Income
Total 2018 Dividends:
R$ 470 million R$380 million R$90 million Complement of IOE, to be R$ 0.24 per share / IOE already paid in voted at next shareholders’ +48% vs. 2017 December 2018 meeting
IOE = Interest on Equity STRENGTHENED BALANCE SHEET AND SIGNIFICANTLY LOWER FINANCIAL EXPENSES
GROSS DEBT NET FINANCIAL RESULTS
(R$B) (R$m)
-45.3% -660 4.1
Discounted 2.2 receivables Cash 4.9 -361 Bank and Interco debt +60.2% 1.9 -104 -65 -0,8 Net Cash Q4 2017 Q4 2018 2017 2018 2018
• None of our loans are subject to financial covenants. All of our debt are in Reais. • Standard & Poor’s credit rating: Brazilian national scale corporate credit rating of “brAAA”, with stable outlook to Atacadão S.A and “brAAA”, with stable outlook for Banco CSF
43 XP PRICE CHECK STUDY – SÃO PAULO CITY PRICE SURVEY FROM Q218
-3.1%
44 C&C GAINED IMPORTANCE IN BRAZILIAN FOOD RETAIL PIE ECONOMIC SCENARIO BROUGHT STRUCTURAL CHANGES IN CHANNEL MIX
EVOLUTION OF CHANNELS RELEVANCE IN VALUE # OF STORES OPENED SINCE 2013
24.4% +23 +868 +1,333 +247 34.6% % STORE TRAFFIC IMPACT vs PERFORMANCE ON LAST YEAR’S RESULTS
16.6% CASH & CARRY
SELF-SERVICE 77.8% 100.0% 100.0% 75.6% 83.4% + + 65.4% HYPERMARKET SUPERMARKET NEIGHBORHOOD
22.2%
HYPERMARKETS SUPERMARKETS NEIGHBORHOOD C&C
OPENING/CLOSURE OF STORES PERFORMANCE 2013 2017
Source: Nielsen 45 DISCLAIMER
This document contains both historical and forward-looking statements on expectations and projections about operational and financial results of the Company. These forward-looking statements are based on Carrefour management's current views and assumptions. Such statements are not guarantees of future performance. Actual results or performances may differ materially from those in such forward-looking statements as a result of a number of risks and uncertainties, including but not limited to the risks described in the documents filed with the CVM (Brazilian Securities Commission) in particular the Reference Form. The Company does not assume any obligation to update or revise any of these forward-looking statements in the future.
About Grupo Carrefour Brasil Grupo Carrefour Brasil has been present in Brazil for over 40 years and is the market leader in food distribution and retail. By operating a multiformat and omnichannel platform, it combines retail and cash & carry operations, as well as financial solutions for its clients through Banco Carrefour. We also manage our real estate and portfolio of galleries and shopping centers through our real estate division - Carrefour Property. The Group is present in every state of Brazil, which allows us to meet the different needs of its millions of customers across the country. In 2017, we reinforced our e-commerce presence with the launch of a marketplace platform of and a proprietary e-commerce food operation via our website www.carrefour.com.br. In traditional retail, we operate with several formats of stores: Carrefour (hypermarket), Carrefour Bairro and Carrefour Market (supermarket), Carrefour Express (convenience store) and Atacadão (cash & carry and delivery wholesale) as well as Supeco (compact wholesale cash&carry). Additionally, we offer complementary services to our food distribution business with gas stations and drugstores services branded as Carrefour and Atacadão.
We are the largest retailer in Brazil and operate more than 638 points of sale. With gross sales of R$ 52.4 billion in 2017 and more than 82,000 employees, the company is one of the largest private employers in the country and the largest retailer among the 20 largest listed companies at the B3 - Brazilian Stock Exchange.
IR Contact Sébastien Durchon Daniela Bretthauer Letícia Montagnani CFO and Director of Investor Relations Investor Relations Director Investor Relations Coordinator
Telephone: +55 11 3779-8501 [email protected] www.grupocarrefourbrasil.com.br 46