Carrefour Group, Building Relationships

5/17/2018 Carrefour Group, Building Relationships - slidepdf.com

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2007 Sustainability Report

RAppoRT dÉveloppeMeNT duRAble 2007

CARRefouRGRoupbuildiNGReSpoNSibleRelATioNSHipS

Design,copywrit ing and production:

Translation:

Photocredits: Carreour Photo Library, Lionel Barbe, Christophe Gay/Skyzone, Nicolas Landemard, Gilles Leimdorer/Rapho,Jean-Erick Pasquier/Rapho, Michel Labelle, all rights reserved - p. 2-3: Getty Images/Bruno Morandi - p. 4-5: Getty Images/Hans Neleman - p.6- 7: Getty Images/Lonely Planet Images/Krzyszto Dydynski - p.8-9: Getty Images/Daly & Newton - p.16:Getty Images/Shannon Fagan - p.24: Getty Images/Daly & Newton - p. 32: Getty Images/Frank Herholdt - p.36: Corbis/Beathan -p.38: Getty Images/Stop - p. 39: Getty Images/Darryl Estrine - p.40: Corbis/Jose Luis Pelaez - p.41: Getty Images/Somos/Veer -p.42: Getty Images/Floresco Images - p. 45: Getty Images/Dimitri Vervitsiotis.

Paper: the Carreour group is committed to the responsible management o its paper sourcing. The paper used or this document iscertifed PEFC (Programme or the Endorsement o Forest Certifcation schemes).This certifcation ensures that the orest rom which thispaper was sourced is sustainably managed (biological capacity o production maintained, respect or biodiversity, soils and waterprotection...).

Printing: the site o printing o this document is certifed PEFC and has obtained the Imprim’Vert® label,which meets the requirementsor hazardous waste management,secure storage o hazardous matter and toxic products exclusion.

2007 financial Report

490,042 employees

CARRefouRGRoupfiNANCiAlRepoRT2007

YOu can FinD the latest carreFOur GrOup

neWs anD the interactiVe annual repOrt

at WWW.GrOupecarreFOur.cOM



youalready know

the retailer,now get to know



CARREFOU2 2007 ANNUAL REPORT / CARREFOUR GROUP

Who dreamed upmodern retailing?

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http://slidepdf.com/reader/full/carrefour-group-building-relationships 5/18CARREFOU4 2007 ANNUAL REPORT / CARREFOUR GROUP

Who opened our eyeswhen it opened its aisles?

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WhaT keepStoday’s cities humming?



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Retail involves building relationships, and the Carre

plays a leading role in this arena. We build relationsh

customers, employees and suppliers, but with instituti

and non-proft partners as well, trading products and

cooperating with others or a more efcient and resp

MessAGe FroM The ChAIrMAn oF The supervIsory BoArd



http://slidepdf.com/reader/full/carrefour-group-building-relationships 9/18CARREFOU

Mr Durán,a year ago you announced that

2007 would be a year o acceleration.

What is your assessment now?

José Luis Durán / We met all o or commit-mets.2007 was ideed a year o acceleratio:acceleratio i terms o rowt becase or2007 sales icreased by 7% at costatexcae rates,aaist 6.4% i 2006 ad 4.3%i 2005.2007 marks te tird cosectie yearo sales icreases ad actiity cotribtiorose by 3.4% i lie wit 2006 reslts. Orrowt markets,i.e.or markets otside Frace,Spai,Italy ad Belim,tred i stro per-ormaces. Tese markets are major rowteies ad ow represet 25% o or co-solidated sales as compared to 21% i 2004.Te opei o ew sqare meters tro acombiatio o oraic rowt ad tacticalacqisitios also led to te aster rate oexpasio.I 2007,we opeed or acqired a total o 1,353ew braded stores, wic eqals abot1.7 millio ew sqare metres.

We also moed at a aster pace to moderizeor stores,wit stro spport or te rollot oor ew sales model i bot te ood ado-ood semets. Te Carreor brad alsobeeted rom acceleratio. We capitalizedo its stret tro or sile-brad,mlti-ormat stratey wit iitial sccesses i Spai,Polad,Brazil,Trkey ad Frace.We also rei-iorated or brad by expadi or assort-mets i arios prodct ad sericecateories.

In view o the 2007 results, do you believe

you made the right choices?

JLD / O beal o te Maaemet Board,I wat to sicerely tak te sta or teir dailyeorts,wic led to te sccess o or stratey.I wold like to particlarly ocs o treeacieemets based o te coices we made.Te rst,witot a dobt,was te rollot o or

ew sales model.Te secod was te optimiza-tio o or bsiess portolio. Te tird was orexpasio i rowt markets.

Firstly, we sccesslly implemeted or ewsales model. We reamped te ypermarketcocept wit te oal o doi more to capi-talize o or brad. Te caes icldedmoi rom a “all-der-oe-roo”approacto a “mlti-specialist”cocept,optimizi cs-tomer fow ad redesii store layot so tatcstomers ca locate prodcts more easily,proidi a wider assortmet,ad strete-i or brad by oeri Carreor prodctsi i-rowt cateories sc as apparel,tableware,compter eqipmet ad acialserices.Te ew model as already acieedecorai reslts ad cstomers aerespoded well to tese caes i bot terocery ad o-rocery departmets.A deci-sio will be take ad aoced dri tesecod qarter o te year abot weter to

implemet coerece o a larer scale.Coceri or bsiess portolio,we iestedi markets ad bsiesses tat acceleratedsales rowt ad maximized protability adretr o capital employed (ROCE). We soldiscietly protable assets like tose i Por-tal ad Switzerlad. At te same time, wemade tree major acqisitios: Atacadao iBrazil, maki Carreor te leadi oodretailer i te cotry; Aold Polska i Polad,cataplti s to te mber two positio ite market, ad te Teelma Spai arddiscot stores, widei Dia’s lead i teSpais market.Lastly,rowt markets ae reatly cotribtedto te accelerated pace o Carreor’s expa-sio.Teir sales ae rise by early 25%,wileteir actiity cotribtio as icreased by

42%. Moreoer, rowt markets’ retr ocapital employed more ta dobled oer tepast tree years.

InTERvIEW WITh JOSé LuIS DuRánChAIRMAn OF ThE MAnAgEMEnT BOARD


We met all o our commitments. 2007 was

indeed a year o acceleration… On behal

o the Management Board, I want to sincerely

thank the sta or their daily eorts, which led

to the success o our strategy.


http://slidepdf.com/reader/full/carrefour-group-building-relationships 10/1814 2007 ANNUAL REPORT / CARREFOUR GROUP CARREFOU

How does Carreour Group contribute tosociety?

JLD /Eery day,te Carreor grop demos-trates its practical cotribtio i tree ways:witi te idstry, as a employer adtro socially resposible iitiaties. Tegrop sets idstry stadards or qality adprice. Eerywere tey operate, te grop’sretail baers oer qality at te best price.I wat to stroly recorm tis c ommitmet iiew o a ecoomy tat is exerti pressreo prcasi power i Frace ad Erope.

Te Carreor grop also plays a major role asa employer.As te top priate employer iFrace, wit more ta 140,000 employees,ad 9t i te world,wit oer 490,000 employ-ees,we proide opportities to people wit awide ariety o skills.Carreor acts as a socialladder by oeri may employees teir rst

job, sally close to ome, ad by proidicareer deelopmet opportities witi tecompay.

Lastly, Carreor practices ecoomic, socialad eirometal resposibility, taki itoaccot its size ad te atre o its bsiess.Ecoomically, te grop’s retail baers areleadi players i eery cotry i wic teyoperate. Tey boost te reioal ecoomyby prcasi 90% o teir spplies locally,sally rom small ad medim-sizedeterprises (SMEs). I Frace, te Carreorgrop works wit more ta 4,000 SMEs, or-i ties i a spirit o partersip ad loyalty.Socially,te grop is committed to poldibasic ma rits as set ort by te Itera-tioal Labor Oraizatio (ILO). Carreoras bee worki sice 1997 i partersipwit te Iteratioal Federatio or hma

Rits (IFhR) to esre tat sppliers i emer-

i cotries are i ll compliace wit basiclabor rits. Tis approac was ormalizedwit a Social Carter, draw p i 2000 adreised i 2005, tat liks all Carreor gropsppliers (ood ad o-ood), ad wit tesii o a memoradm o derstadiwit uio network Iteratioal (unI) i 2001.Te grop aims to promote a iteratioalstadard speciyi te respectie resposibil-ities o compaies ad States,ts ecora-i ealty lobal competitio based oclear, iersal rles.Wit tese priciples imid,we recetly joied Social AccotabilityIteratioal (SAI). We are crretly workiwit oter retailers to coere te ariosadit stadards as part o te CIES-Food Bsi-ess Form.T is approac as bee appro-ed by te releat trade ios ad ngOs,wic ae joied s by ormi a adisorycommittee.

I eirometal matters,te Carreor gropas dertake may iitiaties to redce itsimpact o te plaet. Dri store costrc-tio ad reoatio, te grop ses eco-riedly ad eery-eciet soltios admaterials. It also seeks to iterate its storesarmoiosly ito te srrodi ladscape.I additio, Carreor pts reat eort itoseeki sstaiable spplies ad ecoraesarmi practices tat protect te eiro-met. Oer te past 15 years, Carreor asalso bee committed to resposible co-smptio by icreasi aailability o oraicad air trade prodcts,sold larely der orbrad ames.

Te Carreor grop beliees tat bei se-l meas bei tere or its cstomers ademployees ad, more eerally, llli its

corporate resposibility i society as a wole.

What is your strategy or 2008?What are your objectives?

JLD / Or 2007 reslts demostrated tat teCarreor grop is i a ood positio to eteraoter period o rowt,ee to we arelly aware tat te ecoomic climate will otalways be aorable. Bt cosideri tework we already acieed i 2007 ad tei stadards we apply to eeryti we do,I am codet tat 2008 will be a year o pro-itable rowt.

For te rst time sice we laced or ewstratey tree years ao,aster sales rowtwill lead to correspodi rowt i or resltsad, as a reslt, a ier retr o capitalemployed.

Or rst objectie is to boost sales (ot icld-i acqisitios) by 6 to 8%.We are also seek-

i more rapid rowt i actiity cotribtiota i sales by aii better cotrol oerxed costs ad,to a certai extet, by adopt-i arios measres to improe prodctiity.To scceed,we are coti o rowt mar-kets or a larer sare o sales ad actiitycotribtio.By accelerati protable rowtad optimizi iestmets ad worki cap-ital,we sold be able to eerate a ree casfow o €1.5 billio.Lastly,we will do eerytii or power to esre a ier retr o tecapital employed by te grop.

How will you make 2008 a year o

proftable growth?

JLD / We sold be able to icrease or oper-ati reslt at a aster rate ta sales wit tespport o seeral key iitiaties.Tese icldecotii to roll ot or ew sales model,redci loistics ad oter operati costs,

ad allocati capital more ecietly. We

ae also idetied two possible strateies tocreate additioal ale: brad coerecei Frace ad real estate as a ew area oexpertise.

I wold like to ocs o or approac to opti-mizi capital allocatio,wi c is oe o tecorerstoes o or stratey. To tat ed,wewill cotie to combie oraic rowt wittactical acqisitios, maily orieted towardsrowt markets.I terms o oraic rowt,wewill ope at least 1.2 millio sq.m o ew salesfoor area, as we ae doe oer te pasttree years.Tareted tactical acqisitios willspplemet oraic rowt.Or aim is to pr-se acqisitios o te scale o Atacadao,wic allowed Carreor Brazil to reai itsleadi market positio ad icrease salesby 40% i 2007.

Coceri brad coerece i Frace,we will carelly aalyze te reslts o teexperimet codcted i see ypermarketsad six Campio spermarkets. We willexpad te cocept i it trs ot to be sc-cessl i terms o cstomer satisactio,sales,protability ad retr o capital employed.Te reslts obsered so ar ae bee ecor-ai, wit a 10-15% rise i sales. Coer-ece mst be plaed carelly becase itis ot a matter o simply cai a bradame. Istead, we will be toroly tras-ormi or assortmets,prices,cstomer loy-alty prorammes ad ow brads,all o wicwill beet or cstomers,racisees ad, ocorse, or employees.

Real estate,as I said beore,i s aoter strate-ic asset tat creates ale ad derpisor cstomer relatios.Te ale o or real

estate is directly related to te qality o or

operatios. We wold tereore like to makeproperty maaemet or secod bsiesslie.We will be able to aciee all o or stra-teic oals by creati Carreor Property asa separate etity.Carreor will old a major-ity iterest bt tird-party sareolders willparticipate as well.

How will the Carreour Group’s changing

structure help you achieve these goals?

JLD / We are adapti te maaemetstrctre to te stratey deed by te Ma-aemet Board, wit a empasis o teollowi priorities: expasio o te Carreorbrad, ioatio ad cstomer ocs.Tiscae is ii s te resorces we eed topt or priorities ito practice.I a world ote r, were abits are costatly ca-i ad bsiess models eer last or lo,we mst cotially take a ard look at or

practices, come p wit ew ideas adreiet orseles.Te Carreor grop is llyaware o tis tred. We ts saw t to createstrctres or aticipati cosmer tredsad adapti or retail models ad ways odoi bsiess. Or key word is “dieretia-tio”.By ieti its ow model ad briiot its brad’s ll potetial,Carreor will co-tie to top te list o cstomers’ preerredretailers. Or employees are te stadard-bearers o dieretiatio. More ta eer,I am coti o tem to be or ambassa-dors, taks to te qality o serice teydelier, te creatiity tey sow i eerytitey do, ad te key role tey play or teircstomers ad parters.

InTERvIEW WITh JOSé LuIS DuRánChAIRMAn OF ThE MAnAgEMEnT BOARD

Considering the work we already achieved

in 2007 and the high standards we apply

to everything we do, I am confdent that 2008

will be a year o proftable growth.

Every day, the Carreour Group demonstrates

its practical contribution in three ways: within the industry,

as an employer and through socially responsible initiatives.


http://slidepdf.com/reader/full/carrefour-group-building-relationships 11/1816 2007 ANNUAL REPORT / CARREFOUR GROUP

2007,a year of

positive results

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positive results

Seven highlights for 2007

Financial overview

Stock market overview



Accadowh

2007 marked a new stage in the Group’s

strategy of optimizing its assets as it

invested in markets with strong growth

potential. The acquisition of the

Atacadao chain (34 hypermarkets)

vaulted Carrefour Brazil to the top

position in the food retailing industry.The

acquisition of Tengelmann’s hard

discount business (250 stores and

58 planned openings) widened Dia’s

lead in the Spanish market. The Group

was able to expand its current operations

(11 hypermarkets) to the supermarket

segment (21 stores) and implement its

multi-format and single-brand strategy

after signing a purchase agreement for

Artima in Romania.

Caou Hom:connc mosowad

In September 2007, Carrefour intro-

duced its new home furnishings anddecorating line, Carrefour Home. From

tableware to sofas,from shelving to ac-

cessories, Carrefour Home puts stylish

decorating within everyone’s reach.

This launch supports our strategy of

capitalizing on the Carrefour brand at

all levels, from our retail banners to our

products and services.

“A und h sam nam”

A major strategic initiative, the conver-

gence of trade names under the Car-

refour brand has already achieved

success in Spain,Belgium,Poland,Turkey,

Argentina and Brazil.This single-brand

strategy is being tested in France.Seven

HyperChampion hypermarkets and six

Champion supermarkets are coming

under the Carrefour and Carrefour

Market brand, respectively.The Group

plans to capitalize on the strength and

widespread recognition of the Carrefour

brand to speed up growth and create

a more attractive offering in all storeformats. The Group will use these pilots

to determine the viability of its conver-

gence policy and,if successful,begin to

roll it out in 2008.

Hypmaks:a nnd concp

Helping customers save time and enjoy

the shopping experience is the goal of

Carrefour’s new hypermarket concept.A central aisle gives shoppers direct

access to every section in the store.The

grocery department features a wider

selection while the non-grocery area

creates a multi-specialist ambiance

displaying apparel, tableware and

home furnishings to best effect. The

results are encouraging in the 25 French

hypermarkets remodelled in 2007.

Non-ood:nnaona panshps

The qualitative upgrading o non-ood

products, one o Carreour’s strategic

priorities, accelerated in 2007. Our

partnership with internat ional ly

renowned designer Max Azria gave

birth to our Tex by Max Azria brand. Azria

launched his frst women’s autumn and

winter ready-to-wear collection in 600

hypermarkets in Europe.

Another major agreement: Dell, the

American personal computer manuac-

turer, granted the Carreour Group the

exclusive rights to sell its products

in Europe. Since 15 January 2008,

365 French, Spanish and Belgian hyper-

markets and supermarkets have been

oering a selection o desktop compu-

ters and laptops. When this agreement

is extended to other countries in 2008,

such as Italy, Carreour will become the

European leader in computer equip-

ment sales.

Connnc:a dn oc oaacn nw cusoms

France’s top player in convenience retail-

ing,the Carrefour Group has been test-

ing new convenience formats in the

centre of large cities outside France. In

Madrid, three stores of 350 to 500 sq.m

were inaugurated under the Carrefour

City banner.In Poland, four stores were

opened under the 5 Minut Carrefour

name. In Brazil, the Group is testing100 sq.m convenience stores under the

Carrefour Express banner at service

stations located in the centre of

Porto Alegre.

Opnn o h100h Caouhypmak n Chna

On 6 July 2007,the 100th Carreour hyp

market opened its doors in Shaozingthe province o Zhejiang with the sa

enthusiasm as the frst store 12 years a

Having inaugurated 22 hypermarket

2007, a record number o opening

one country in a one-year period,

Group is continuing its policy o stro

organic growth in a particularly dynam

Chinese market.

54%of sales generated outside France

145new hypermarkets

1,353new stores opene

18 2007 ANNUAL REPORT / CARREFOUR GROUP CARREFOU

SeveN HigHligHtSfOr 2007



Actty contbuton*(in millions o euros)

Actty contbutonbo dpcaton andamotzaton*(in millions o euros)

Consoldatd nt sals(in millions o euros)


I 2007,the Crreour group met its commitmets. The Crreour Group chieved its gos i 2007 despite ercey competitive

eviromet i Europe d gist the bckdrop o deftio i Frce or the rst three qurters o the yer:

• sales net of tax rose by 6.8% at current exchange rates (or 7.0% at constant exchange rates), which represents the company’s

third consecutive year of accelerating growth ;

• activity contribution rose by 3.4%, a growth rate similar to that achieved in 2006.

Growing markets conrmed their role as an engine for growth within the Group. These markets represented more than 25%

of Group sales in 2007,vers us 21% in 2004.

Activity contribution before depreciatio n and amortization grew by 5.8%, while activity contribution after IFRS 2* reclassication

rose by 3.4%.

Financial expense showed a net expense of 526 million euros, an 11% increase over 2006.This increase was the combined effect

of rising interest rates and increased average nancial debt, notably due to acquisitions which occurred this year.

The taxation rate was essentially stable at 28.7%.After the integration of companies consolidated by the equity method and mi-

nority interests, the Group share of net income rose by 0.7%.

FInanCIal Overview

In 2007, consolidated sales grew

by 6.8% at current exchange rates

and 7% at constant exchange

rtes. I 2007, the Crreour Group

disposed o its hypermrkets

i Portug d so sod its

operations in Switzerland.

I dditio, the Group cquired

atcdo i Brzi, ahod Posk

and Tengelmann (Plus) in Spain.

The Group purchsed artim i

Romania in December 2007.

Sales in France rose by 1.1% in

2007. Sales in Europe increased

by 6.9%, while in Latin America

and Asia sales grew by 38.5%and 11.6% respectively at current

exchange rates.

I tough competitive eviromet,

the Group hs successuy

mitied its mrgi rom curret

opertios t the sme geer

level as in 2006 and has controlled

its reti costs despite octig

more resources to the ses foor.

activity cotributio beore

deprecitio d mortiztio

therefore increased by 5.8%,

a growth rate similar to that of sales.

As in 2006,acceleration in the

expansion programme over the

pst three yers d the roout

of new commercial concepts

utomticy ed to icresed

asset costs (rents and

depreciation),a rise of 10.9%.

Consequently,after IFRS 2

reclassication,the Group’s activity

contribution increased by 3.4%

to €3,291 million.

It fell 5.7% in France but increased

by 1.2% in Europe,by 86.6% in Latin

America and by 27.6% in Asia.

2005

4,582

2007

5,014

2006

4,740

2005

3,152

2007

3,291

2006

3,183

2005 20072006

73,060

82,14876,887

Bakdon o consoldatdnt sals by omat(in %)

Bakdon o acttycontbuton(in %)

Bakdon o consoldatdnt sals by gogaphc gon(in %)

Nt ncom om cungopatons p sha(in euros)

Nt ncom om cungopatons - Goup sha(in millions o euros)

rato o nt fnancal dbt(as a percentage o

shareholders’equity)

CARREFOU

net debt stood t €7,357 million

t yer ed, icrese o

€1,048 million from 2006.In the end,

the rtio o et ci debt to

shareholders’equity was 63%.

Financial expenses increased by

11.1% over the year,while coverage

of nancial expenses stood at 9.5x.

net icome rom recurrig

operations - Group Share grew by

0.7%,despite an 11.1% increase in

nancial expenses.

The taxation rate for 2007 stood at

28.7%,compared with 29% in 2006.

net icome rom recurrig opertio

per share was €2.67,an increase

of 1.4% over 2006.

The Group Share Net Income per

shre, tkig ito ccout the

proceeds rom opertios tht

were sold or are in the process

of being sold,was €3.28 in 2007

versus €3.22 in 2006.

* Net income from recurring operations per shapublished in 2005 and 2006.

€3,291million

€82.1billion

9.5 x= ACDA / fnancial costs

€1,868million

2e

2005 20072006

1,798 1,8681,856

2005

2.58*

2007

2.67

2006

2.64*

TOTAL e82,148 M TOTAL e82,148 M TOTAL e3,291 M

60.0 Hypermarkets

17.4 Supermarkets

9.2 Hard discount stores

13.4 Other stores

Commnts:

The 2007 nancial statements are presented in accordance with IFRS standards 2 and 5. In accordance with IFRSstandard 2, stock options costs will now be treated as personnel costs. In accordance with IFRS standard 5, the 200

nancial statements have been adjusted for disposals that occurred or were announced during the course of this yeaThe 2006 nancial statements have been restated to reect IFRS standards 2 and 5.The 2005 nancial statements correspond to published gures and do not reect IFRS standards 2 and 5.

47.3 France

37.0 Europe

9.1 The Americas

6.6 Asia

45.8 France

37.5 Europe

10.0 The Americas

6.7 Asia

Net salesActivitycontribution Debt

Net income romrecurring operations- Group Share

Nrep

2005

72

2007

63

2006

60

* Activity contribution before depreciation and amortization as well as activity contribution for 2006 and 2007were restated to take into account IFRS 2 standard concerning the treatment of stock options,which will nowbe treated as personnel costs and which until 2006 were treated as non-recurring items.



CARREFOU

Shareholder inormation

Carreour Group shareholders have access to transparent, accurate and regularly updated inormation through:

t S’s GContains all the essential information on the Group and sha

management.

mgsThe Annual Shareholders’ Meeting, other shareholmeetings throughout France or meetings during the PActionaria Exhibition.In 2007, shareholder meetings were held in Montpe(21 May), Nantes (28 November), Toulouse (4 DecembTours (6 December) and Paris (13 December), and Group part icipated in the Actionaria Exh ib it i(16 and 17 November).A schedule o upcoming meetings can be ound on Group website,www.groupecarreour.com,in the FinancShareholder section.

C Gp

ivs rs26 quai Michelet - TSA 2001692695 Levallois-Perret CedexTel: +33 (0)1 55 63 39 [email protected]

C Gp

S rsNew address:26 quai Michelet - TSA 2001692695 Levallois-Perret CedexTel: +33 (0) 1 55 63 39 [email protected]

rgs ss

CaCeiS Cp ts-ivs rService Émetteurs-Assemblées14 rue Rouget de Lisle92862 Issy-les-Moulineaux Cedex 09Tel: +33 (0)1 57 78 34 44Fax: +33 (0)1 49 08 05 [email protected]

C fc :

• Annual Shareholders’Mee ting: 15 April 2008• Publication o frst quarter 2008: 13 May 2008• Payment o dividend: 23 April 2008*• Publication o second quarter 2008: 9 July 2008• 2008 hal-yearly results: 29 August 2008• Publication o third quarter 2008: 13 November 2008* Subject to the approval of the shareholders at their Annual Meeting.


STOCK MARKEToVerVieW

CaPital

At 31 December 2007,Carreour’s equity capital totalled 1,762,256,790 euros.This was made up o 704,902,716 shares with a par value o 2.50 euros and is unchanged rom 31 December 2006.

Shareholders Number of In % Number of In % Number of In %shares ordinary extraordinary

voting rights voting rights

Halley amily group 93,106,789 13.21 169,440,413 20.84 169,440,413 20.84

Blue Capital 64,045,810 9.09 64,045,810 7.88 64,045,810 7.88

Employees 7,615,075 1.08 15,219,200 1.87 15,219,200 1.87

Owned shares 10,942,439 1.55 – – – –

Controlled shares – – – – – –

Public 529,192,603 75.07 564,159,219 69.40 564,159,219 69.40

Total 704,902,716 100.00 812,864,642 100.00 812,864,642 100.00

Carreour StoCk

Carreour is listed on the SRD Eurolist (Deerred Payment Service, ISIN code FR 0000120172).It is included in the ollowing indices: CAC 40 and DJ Euro Stoxx 50.On 31 December 2007,the share was in 10th position in the CAC 40 index in terms o market capitalization,with aweighting o 2.94%.

*Subject to the approval of the shareholders at their Annual Meeting on 15 April 2008.

S pc vs 2007 cp w CaC 40 x w Beoodr x*(basis 100)

Janv. 07 Fév. 07 Mars 07 Avr. 07 Mai 07 Juin 07 Juil. 07 Août 07 Sept. 07 Oct. 07 Nov. 07 Déc. 07

80

85

90

95

100

105

110

115

120

125

130

*The Befoodr index includes: Carrefour, Casino, Colruyt, Delhaize, Sainsbury, Ahold, Metro AG, Wm Morrison and Tesco.

n

n

n

a p b ssService available 7 days a week,24 hours a day.By dialling +33 (0) 1 55 63 39 00,shareholders h ave accessto the ollowing inormation:• Group news and important events;

• the share price, its movement and that of the CAC 40;

• the calendar of meetings and nancial publications —

contact inormation can be let by voice mail to receive theLetters to Shareholders, the Shareholder’s Guide or theAnnual Report;

• pure registered shares and their advantages — the share-holder is put through to an adviser o the Credit AgricoleIndosuez Corporate Trust,appointed by Carreour to manageregistered shares;

• the Group’s strategy and outlook, by contacting the Share-holders’Service.

a Ss’ - Register under the Finance section o the Carreourwebsite: http://www.groupecarreour.com.

t l SsSent to all registered and bearer shareholders who requestit,t he Letter to Shareholders appears twice a year.

Ccs:

In euros / on 31 December 2002 2003 2004 2005 2006 2007

Quoted price: highest 58.15 46.34 44.11 41.75 51.15 58.10

lowest 38.07 29.35 33.70 35.36 38.10 42.95

closing 42.43 43.52 35.04 39.58 45.94 53.29

Number o shares 716,141,771 716,142,383 705,119,550 704,902,716 704,902,716 704,902,716

Market capitalization(in billions o euros) 30.4 31.2 24.7 27.9 32.4 37.6

Average daily volume 2,567,064 2,513,291 3,028,232 2,613,756 3,117,619 4,337,998

Net income per share romrecurring operations – – 2.56 2.58 2.64 2.67

Net dividend 0.64 0.74 0.94 1 1.03 1.08*

Yield 1.50% 1.70% 2.70% 2.53% 2.24% 2.03%



We are buildingstrategic relationships

O owth mt mkt fo h, wh o coqt

of m mkt h jt . Th gop h opt

poctv tty fo poto t : owth covc

hp Cfo’ w mto.

strategic relationships

Gaining ground in all markets

Capitalizing on the Carrefour bra

Reinventing the shopping exper




stratEgicrELatiONsHiPs

GAINING GROUNDiN aLL MarKEts

No. 1 in Europe and No. 2 worldwide, the Carrefour Group is the most international of

retailers, boosting business in every market.

26 2007 annual report / CarreFour Group

MAtURe cOUNtRIes: wheRe we stAND

the ceou goup enee 83% o le n

Euope nd he lede o o-lede n mo o he

eon’ oune. th he pmy eon o

ue.th lo why, n 2007, whdew om

Poul nd swzelnd,whee would no hve

been ble o e qukly enouh o op-hee po.

the ou mjo Euopen mke Fne, spn,

Belum nd ily — epeen 74% o ceou’

le. Fne lone oun o 46%.the muynd nene ompeon h heze hee

oune men we mu onnully envoe

ou bune o onolde ou ledn poon.in

2008, he goup wll vely puue wo mjo

poje: bnn new eney o he ceou bnd

nd onnun o nom el model n he

ood nd non-ood emen.

CarreFou

PROActIve AND tARGeteD cONqUest

in hh-owh oune,ceou’ ey on

n buldn mul-om oe dped o he lol

mke nd hevn ledn poon n he

medum em.

in Bzl,quon o he doun hypemke hn

ado puled ceou o he op nk n

ood eln,boon he goup’ mke he by

4%.th quon ve ceou Bzl e o

uome bede hoe who hop upemke,

hd doun oe nd donl hypemke.smlly,n indone, he memondum o unde-

ndn ned n ely 2008 o 75% nee n al

relndo wll wden ceou’ led n he ood

eln mke.

in chn, he goup mn o eul e o

on owh by openn ome 20 hypemke

pe ye. in ind, duon e undewy wh

vou lol pne,wh bune lunh ledy

heduled o 2009 unde he h & y om.

carrour Pola lra10 ar o uin n n n

n in 1997,he ceou goup opened f

hypemke n Lódz, Polnd.ten ye le,

edy owh nd he quon o ahold

Polk hve euled n 72 hypemke,

277 upemke nd 31 eve on.

ceou,one o he f Fenh nveo n he

Polh mke, mjo eonom plye n

Polnd.i employ 26,000 people nd wok wh

moe hn 2,100 Polh podue,who upply95% o he podu old by ceou.

1.7sq.m o

54of the Ggenera

LeveRAGING eMeRGING MARkets

Wh 42% nee n vy onbuon nd

25.4% e n le,owh mke n enne

o ceou’ owh nd domnne.

in Euope,he quon o ahold Polk n Polnd

nd am n romn elen ceou’

peneon o hee wo hh-poenl mke.in

2008,he goup lo pln o open oe n ru,

mke o 142 mllon nhbn,nd n Bul,

wh he openn o sof’ f hypemke.

in wo ohe le mke,Ln ame nd a,he ceou goup lo benef om old me.

a eul, pln o nve nfnly n hee

eon.i mjo owh ly e Bzl,chn,

indone nd ind.




cAPItALIZINGON tHE carrEFOUr BraND

Convinced of the Carrefour brand’s very high potential, the Group promoted it a t every level

in 2007, from store banner to store department.


OUR bRAND: A key Asset

thee’ no doub bou : beween loblzon nd

he nenly fee ompeon mon ele,

only on bnd wll emee voou n he ble

ove lobl de. in mny oune wh goup

opeon,ceou he mke lede n em o

bnd wene,pe nd oen,nludn ele-

on,quly nd up-o-de podu.in Fne,9 ou

o 10 uome buy le one ceou bnd

podu when hey hop n ou hypemke. the

ceou bnd h exodny poenl, whhhe goup nend o develop on le le.Ou

objeve: mke eve nd oey nd non-o-

ey podu moe wdely vlble unde he

ceou bnd nd exend he bnd o deen

oe om.

cARRefOUR bRAND PRODUcts:A RIse tO PROMINeNce

sne 2005, he goup h been ompehenvely

envenn he ceou bnd by emlnn

poolo nd ddn hh-poenl ood emen,

uh de,helh ood, on nd pel

hlden’ podu. in 2007, he goup nodued

he bnd n he non-ood nd eve emen,

nludn home deon wh ceou Home,

even wh ceou chm nd moble phone

wh ceou Moble.

Ou objeve: oe 20,000 podu ln unde he

ceou bnd n Fne bennn n 2008.

CarreFou

steADy PAce Of bRAND cONveRGeNce

sueully lunhed n spn nd Bzl, bnd

onveene onnued n 2007 n Belum, Polnd,

tukey nd aenn, wh he me onluve

eul: n upwn n le, need mke he

nd, bove ll, mpoved uome on.

in Fne, he goup eed he whove o ou

hypemke nd chmpon upemke o he

ceou nd ceou Mke nme, epevely.

cuome on wll be he key o n dee-

mnn he expemen’ ue. i he ouome pove, wll be exended o ll chmpon oe.

20Carrefoin Fran

connin or: poring carrour nam n n n

nWherever iies re beomin more densely

populed, residens re seekin he

onveniene nd ppel o neihbourhood

sore. the crreour group hs lredy

niiped his rend nd is lunhin new

onveniene sore orms o 80 o 500 sq.m in

he her o lre iies, inludin crreour

ciy in Mdrid, 5 Minu crreour in Wrsw nd

crreour Express in Poro alere. these sores

ll pilize on he crreour brnd, oerin he

benefs o onveniene sore orm.




ReINveNtINGtHE sHOPPiNg EXPEriENcE

With consumer needs constantly changing and product lifecycles shrinking, the Carrefour

Group is bouncing back and cultivating what it invented: the fun of shopping.


GUIDING cUstOMeRs:

the hyPeRMARket ReINveNteD

Mkn ee nd moe plen o uome o

nd he wy ound he oe he numbe one

ol o he new hypemke onep, whh

uenly ben pu no ee.a le enl le

oe pnom vew o ou podu nd povde

uome wh quk e o ll eon o he

oe.sne eple dply dven,helpn

uome loe he podu hey’e eekn.

in he ood eon,mkn depmen moe om-p mpove podu vbly,enhne he oen

nd mple he uome’ eleon.ao men

hve own by 10% nd he ou on new end,

uh on, helh ood nd edy-o-e po-

du.in le 2007,ove 300 hypemke woldwde

whed o he new oey onep.

AttRActING cUstOMeRs :

bOOstING NON-fOOD sALes

tody n Fne,only one ou o ve uome buy

non-oey em.Leven he non-ood emen

o nee le nd pobly he ohe mjo

hllene n ceou hypemke. to

ueed,ou mken h beome hhly eed o

ne une ou oen nd upde podu quly.

the objeve o nd ou om he ompeon nd

ee new eon o uome o hop ou oe.

Boh he déo nd podu o ou non-ood dep-

men,eble dely om he ene le,onvey

mul-pel mbne nd dply new podu

n owh eo o be ee.Ledn he wy e

blewe, home deon em, ppel nd

eleon equpmen.the lunh o exluve ndylh women’ edy-o-we olleon n

pnehp wh dene Mx az nd Olve

CarreFou

being chinese in china n n n

n the ceou goup lo om nd

oen o he leyle nd onume behvou

o he ouny n whh opee.chnee

onume,o exmple,hve ewe nd

eeo hn do Euopen onume nd

hop moe oen: n vee o hee me

week.in epon e o hee pel need nd

he, ceou hypemke oe lvely

depmen ll le oule h efehe mbne o open- mke nd le

eleon o eh,ly-onolled podu.

in ddon,95% o ou podu e o lol on

nd 98% o ou employee e chnee.

Lpdu boon le n he lohn depmen.

a o Jnuy 2008,ceou h obned exluve

h o ell Dell peonl ompue, developmen

h pome o enhne h emen’ ppel.

innovve oun ound ou ou pomoonl

mpn nd ee moe ve non-

oey depmen.

secURING cUstOMeR LOyALty:

the seRvIces APPROAch

the goup expndn eve o new

uome nd buld uome loyly. the nnl

eve depmen oen moe opon nd

ee nnovon n uh popul eve

pymen d, nvemen podu nd nune

ovee. Moble phone, home ompue uppo

nd peonl eve e dully expndn he

oen nd enhnn he elonhp o u

beween he bnd nd uome n Fne,

Euope nd woldwde.

14Nearly

Carrefocard howorldw

10Over

Carrefoholders

Carrefour Group, Building Relationships

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Transcript of Carrefour Group, Building Relationships