32 Examen - ET 53. Financial Analysis CASABLANCA 32 F 2020/2021 Analyse Financiare Idriss JABRI Carrefour SA Carrefour SA engages in the provision of supermarkets and retail stores. Its activities include operation and management of hypermarkets; supermarkets; convenience stores; cash and carry stores, and both food and non-food e-commerce websites. The company was founded on July 11, 1959 and is headquartered in Boulogne-Billancourt, France. Please find below an extract of the Annual Report for fiscal year 2019: Leader in the food transition for all Carrefour has established itself as a leader in the food transition for all, thanks to the multiplication of concrete actions around food quality and traceability, the development of organic products, the support of agricultural sectors, the reduction of food waste, limiting plastic packaging, animal welfare, etc. Group sales of organic products grew by more than +25%, le 0.3bn in 2019 (1.8bn in 2018). The Group confirms its target of 4.8bn in organic sales in 2022. Priority to customer satisfaction, supporting a sustainable and profitable growth model The growth of the customer satisfaction index Net Promoter Score" (NPS) in all countries reflects the Prisen Home End gu & %6 5 8 9 E R and armuport Priority to customer satisfaction supporting a sustainable and profitable growth model The growth of the customer satisfaction index Net Promoter Score (NPS) in all countries reflects the priority given by Carrefour to customer satisfaction. This progression over time clearly contributes to the improvement in sales in most of the Group's geographies. At the end of December 2019, the Group's NPS was up +8 points since the start of the plan. Carrefour aims to increase NPS by another +15 points over the 2020-2022 period, or +23 points since the launch of the plan. More competitive and attractive offer Carrefour has now reached a satisfactory level of price competitiveness in several key geographies The Group also continues to invest: In France, Carrefour has improved its price positioning: o Repositioning on permanent prices: "Unbeatable" prices on more than 500 key Fast- Moving Consumer Goods (FMCG) since June 2019 Strengthening loyalty schemes with the new "Market Loyalty Premium" launched in January 2020 in supermarkets (10% discount every day on fresh products such as fruits and vegetables, butcher, fishmonger, flowers and plants; 15% discount for Pass cardholders) In Belgium, Carrefour has invested in prices in all formats, via price cuts on 1,000 products, launched in November 2019, both on national brands and Carrefour-branded products End up Prison Hom. $ 96 5 & 7 8 3 O Y U R T Allerton Vous plus que de boferi! Idriss B2 - Examen - ET 53- Financial Analysis CASABLANCA B2 FT 2020/2021 Analyse Financiere JABRI on and on launched in November 2019, both on national brands and Carrefour-branded products In Italy, Carrefour rolled out in September 2019 the "Prezzo ribassato" permanent price reduction campaign (5,000 products) to the whole territory These initiatives are accompanied by significant investments in non-price competitiveness, in order to improve the product offering (broadening the range and improving the quality of Carrefour-branded products) and deploying a benchmark omni-channel service. Carrefour has thoroughly revised its offer to assert its food expertise. After having reduced its assortments by - 10.1% at end-December 2019, the Group confirms its target of a -15% reduction by 2020 6 ind up Presc Home A 3 // Attention Vous ver que os de bote! at B2 - Examen - ET S3- Financial Analysis CASABLANCA B2 FT 2020/2021 Analyse Financire Idris JABR tolon and report od! The Group is also developing its range of Carrefour-branded products, whose penetration rate increased by two points in 2019. Carrefour plans to achieve one-third of its sales via Carrefour-branded products by 2022. The hypermarket format performed well in a number of key geographies. It is being adapted and benefits from new investments in France. Carrefour is continuing to reduce under productive sales areas, mainly in non-food, which reached nearly 115,000 sq. m at end-December 2019 (including nearly 55,000 sq. m in France), and confirms its ambition with a global target of a reduction of 350,000 sq. m by 2022. Sizeable investments in digital are again reflected in an increase of more than 30% in food e- commerce sales in 2019. Sales reached 1.3bn in 2019 compared to 1.Obn in 2018 (excluding China). Carrefour is continuing to roll out its omni-channel offering and confirms its target for food e- commerce sales of 4.2bn in 2022. Operating efficiency and financial discipline In 2019, Carrefour continued the profound transformation and simplification of organizations. Carrefour achieved C1,030m in savings in 2019, Le 1,960m since the start of the plan. Andon vous verre de boere! Idris 32 - Examen - ET S3- Financial Analysis CASABLANCA B2 ET 2020/2021 Analyse Financire JABF cm 1 and are Operating efficiency and financial discipline In 2019, Carrefour continued the profound transformation and simplification of organizations. Carrefour achieved 1,030m in savings in 2019, i.e. 1,960m since the start of the plan. This solid momentum now makes it possible to raise the cost-reduction target to 2.8bn on an annual basis by end-2020 (vs 2.6bn). Carrefour will continue the powerful cost reduction dynamic in all regions beyond 2020. To achieve this target, the Group will further industrialize its operational processes and will continue to develop its expertise in purchasing of goods not for resale. In addition, pooled negotiations within the Group and purchasing alliances, particularly with Systme U and Tesco, should continue to bear fruit. Finally, having achieved its target of disposing of 500m of non-strategic real estate assets one year ahead of plan, the Group announces a new target of disposing of an additional 300m of non-strategic real estate assets by 2022. Rationalization and strengthening of the business portfolio Following the divestments of Dia France and Carrefour China, the sale of Rue du Commerce marks a significant step forward in the rationalization of the portfolio and the exit from loss-making activities Finalization on September 26, 2019 of the sale in cash of 80% of Carrefour China to Chinese group Suning.com, in an agreement that provides liquidity windows for the sale of the remaining 20% - + OX Pup Prisen Home PII Attention : Vous n'avez plus que 0% de batterie ! Idriss B2 - Examen - ET S3- Financial Analysis CASABLANCA B2 FT 2020/2021 Analyse Financire JABRI 18 nand annual report.pdf Suning.com, in an agreement that provides liquidity windows for the sale of the remaining 20% stake Finalization on October 15, 2019 of the sale of Carrefour's stake in Cargo Property Assets to Argan, in exchange for 231m in cash and a stake of around 5% in Argan. Sale by Carrefour in December of Argan ordinary shares for a total amount of approximately 80m 05 Men Vi er de baterie Idriss tant B2 - Examen - ET S3. Financial Analysis CASABLANCA B2 FT 2020/2021 Analyse Financiere JABRI unod INCOME STATEMENT Carrefour SA Display Currency (Thousands) EUR EUR EUR INCOME STATEMENT 2019 2018 2017 Net Sales 71,651,000 75,260,000 78,253,000 Other revenue 2,491,000 2,656,000 2,722,000 Total Revenues 74,142,000 27,916,000 80,975,000 Cost of goods & services -57,819,000 60,780,000 -62,697,000 Total Gross Profit 16,323,000 17,136,000 18,278,000 Selling. Gen. & Admin. Costs -12,762,000 -14,637,000 -14,864,000 EBITDA 3,563,000 2,513,000 3,418,000 Depreciation & Amortization (D&A) -2,376,000 -1,718,000 -2,691,000 Operating Income after D&A 1,187,000 795,000 727,000 Exceptional Expenses 28,000 57,000 22.000 EBIT 1.215,000 852,000 749,000 Net interest -404,000 -339,000 -445,000 Before Tax Earnings 323,000 495,000 256,000 Home End Dyup yo Vous ! Id B2 Examen - ET 53. Financial Analysis CASABLANCA 52 FT 2020/2021 Analyse Financire JAL EDITUR 3,503, UUU 2,513, UUU 3,416,00 Depreciation & Amortization (D&A) -2,376,000 -1,718,000 -2,691,000 Operating Income after D&A 1,187,000 795,000 727,000 Exceptional Expenses 28,000 57,000 22,000 EBIT 1,215,000 852,000 749,000 Net Interest -404,000 -339,000 -445,000 Before Tax Earnings 723,000 495,000 256,000 Income Tax -504,000 -539,000 -618,000 Earnings after Tax 219,000 -44,000 -362,000 Minority Interests - 182,000 -216,000 -169,000 Net income/(loss) from discontinued operations 1,092,000 -301,000 1,000 Net Income 1,129,000 -561,000 -530,000 Ordinary Dividends -183,496 -358,705 -356,352 On September 26, 2019, the Group ceded control of its subsidiary Carrefour China. As Carrefour China represents a separate major geographic area of operations, it is considered a discontinued operation in accordance with IFRS 5. Accordingly: Erva Home Pub Pous Prisen DI d