CA Xtrackers California Municipal Bonds ETF

Strong improvement in free cash flow

Lower debt

Continued investments in multiformat

Regulatory News:

Carrefour (Paris:CA):

Increase in net sales: €76.9bn, +3.0% on an organic basis

• Faster growth in Europe, notably in Spain and Italy; all formats grew in France again this year
• Excellent performance in Latin America in a more difficult environment

Growth in Recurring Operating Income: €2,445m, +7.0% at constant exchange rates, +11.5% proforma1

• In Europe, all countries, including France, posted an increase in their operating margin. ROI in Europe was up almost 10%1
• Profitability in Emerging Markets continued to improve, illustrated by a sharp increase in ROI in Latin America (+23.5% at constant exchange rates)

Marked rise in adjusted net income, Group share: €1,113m, +7.1%

Improved financial structure; continued investments in multiformat and omnichannel transformation

• Free Cash Flow excluding exceptional items of €951m, strongly up vs 2014
• Net debt reduced by €408m, to €4.5bn
• Sustained investments of €2.4bn in the modernization of our store network and multiformat expansion, with 1,123 store openings, of which 850 convenience stores
• Integration of DIA stores in France and acquisition of Billa supermarkets in Romania
• Digital ramp-up throughout the company and acquisition in France of Rue du Commerce

Proposed dividend: €0.70 per share, in cash or shares

1 At constant exchange rates and excluding the integration of DIA, the increase of the Tascom tax on selling space and the transfer to Carmila of rental income from shopping malls

                  Key figures (m€)   2014   2015  

Variationat constant exch. rates

 

Variationat current exch. rates

        Net sales 74,706 76,945 +4.1% +3.0% Organic growth           +3.0%     Recurring Operating Income before D&A (EBITDA) 3,803 3,955 +6.7% +4.0% Recurring Operating Income (ROI)   2,387   2,445   +7.0%   +2.4% ROI including income from associates and joint ventures   2,423   2,489   +7.2%   +2.7% Adjusted net income, Group share   1,040   1,113       +7.1%   Free cash flow (continuing operations, excluding exceptional items)   664   951       +€287m Net debt at close   4,954   4,546       -€408m Net debt/EBITDA   1.3x   1.1x        

Further growth in ROI (+7.0% at constant exchange rates, +11.5% proforma) and in adjusted net income, Group share (+7.1%)

Income statement

In 2015, Carrefour recorded a significant increase in sales. Net sales were up by +4.1% at constant exchange rates and by +3.0% on an organic basis. All regions reported sales growth at current exchange rates, with Europe up by +2.7% and Emerging Markets up by +3.8%.

Recurring Operating Income (ROI) grew once again to €2,445m, up +7.0% at constant exchange rates (+2.4% at current exchange rates), increasing both in Europe (+9.9% proforma) and in Emerging Markets (+9.2% at constant exchange rates).

In France, ROI stood at €1,191m. Operating margin in France was up compared to 2014, after adjusting for the integration of DIA, the increase in the tax on sales space and the transfer to Carmila upon its creation in 2014 of rental income from shopping malls. The transformation plan of DIA stores accelerated as planned during the second half.

In Other European countries, ROI rose sharply, to €567m vs €425m in 2014, up +33.4%. In 2015, commercial margin improved, reflecting the positive impact of our various action plans. Operating margin was up by 70 bp to 2.9% of sales. This performance was largely driven by the continuing recovery in Spain and improvement in Italy. Operating margin improved in all countries.

Latin America continued to grow strongly, with an increase in ROI of +23.5% at constant exchange rates, to €705m. This improvement reflected excellent LFL sales growth in Brazil and Argentina, combined with an improvement in commercial margin. SG&A included the increase in energy costs in Brazil. Operating margin stood at 4.9%, up 20 bp.

In Asia, ROI stood at €13m. In China, amid an economic slowdown and rapidly-changing consumer needs, we are continuing the repositioning of our model. In Taiwan, sales returned to growth for the first time in over two years, driven by the roll-out of our multiformat model and the modernization of some hypermarkets, and ROI was up.

In 2015, non-recurring income was a net expense of €257m, principally linked to reorganization costs in various countries. This compares to a gain of €149m in 2014, essentially linked to the capital gain from the contribution of assets to Carmila. Net income from continuing operations, Group share, stood at €977m, including the following elements:

• A drop in financial expenses, largely attributable to lower interest costs for €52m. This drop resulted from the combination of continued low interest rates in Europe, partly offset by higher interest rates elsewhere;
• A broadly stable effective tax rate.

Net income, Group share, stood at €980m. When adjusted mainly for non-recurring income, net income, Group share, stood at €1,113m, up by +7.1%.

Cash flow and debt

In 2015, free cash flow improved sharply and stood at €687m vs €306m in 2014. This variation principally stemmed from:

• A sharp improvement in gross cash flow which stood at €2,733m vs €2,504m in 2014;
• Working capital requirements represented an inflow of €81m in the year, vs €19m last year;
• An improved variation of fixed-asset supplier payables, which constituted an inflow of €136m, while business-related asset disposals generated an inflow of €104m;
• Continued capex of €2.4bn to bring up to standards, modernize and develop our store network.

Adjusted for exceptional items, free cash flow from continuing operations reached €951m, sharply up vs 2014.

Net financial debt at December 31, 2015 stood at €4.5bn, a reduction of €408m compared to December 31, 2014. It benefited from:

• The improvement in free cash flow described above;
• The sale of part of our treasury shares in March 2015, which generated a cash-in of €394m;
• The sale of an additional stake in Carrefour Brazil to Península Participações in April 2015. Peninsula’s stake now stands at 12%.

2016 priorities

Carrefour is continuing its transformation, with strong ambitions for its multiformat model, which allows it to offer its clients a shopping experience adapted to their evolving aspirations and to changing consumption habits.

The world’s most multi-format retailer, Carrefour continues to invest in expansion. In 2016, the Group will continue opening stores in its different formats, notably in convenience, at a sustained pace. In France, the conversion of the DIA store network is proceeding according to plan, with another 500 stores to be transformed in 2016.

Carrefour is also investing for sustainable growth. The Group continues to modernize its stores in all countries and to enhance the attractiveness of its sites by capitalizing on Carmila. Carrefour is making further headway in its structural projects, including the revamp of its supply-chain and IT rationalization in several countries. The repositioning of its model in China is one of Carrefour’s priorities.

Carrefour is accelerating its digital transformation as it pursues its omnichannel ambition. This ambition capitalizes on Carrefour’s physical store network and on the development of e-commerce services in all Group countries. In France, the acquisition of Rue du Commerce will allow us to enrich our offer via a marketplace.

In 2016, Carrefour will maintain its financial discipline:

• Total investments of between €2.5bn and €2.6bn
• Constant focus on free cash flow generation
• Maintain BBB+ rating

Agenda

• Q1 2016 sales: April 15, 2016
• Shareholders’ Assembly: May 17, 2016

APPENDIX

Geographic breakdown of sales and Recurring Operating Income

  Net sales   Recurring operating income                  

(€m)

  2014   2015  

Organic

growth 1

  Variation at current exch. rates  

2014

restated2

  2015  

Proforma variation3

  Variation at constant exch. rates   Variation at

current

exch.

rates

France 35,336 36,272 +1.1% +2.6% 1,271 1,191 +1.8% -6.4% -6.4% Other European countries 19,191 19,724 +1.2% +2.8% 425 567 +34.2% +33.4% +33.4% Europe 54,527 55,996 +1.2% +2.7% 1,697 1,758 +9.9% +3.6% +3.6% Latin America 13,891 14,290 +15.7% +2.9% 660 705 +23.5% +23.5% +6.9% Asia 6,288 6,659 -9.5% +5.9% 97 13 -87.6% -87.6% -87.0% Emerging Markets 20,179 20,949 +7.6% +3.8% 757 718 +9.2% +9.2% -5.2% Global functions                   (67)   (31)             TOTAL   74,706   76,945   +3.0%   +3.0%   2,387   2,445   +11.5%   +7.0%   +2.4%

1 Ex petrol and ex VAT

2 Cf appendix page 6

3 At constant exchange rates and excluding the integration of DIA, the increase of the Tascom tax on sales space the transfer to Carmila of rental income from shopping malls

Adjustments to Recurring Operating Income

Comparative information for 2014 has been restated to reflect the application of IFRIC 21 – Levies. There is no impact on 2014 full-year recurring Operating Income. Comparative information for 2014 and the first half of 2015 has also been adjusted for head office cost allocations.

Recurring operating income (€m)

First half 2014

  Reported   Restated for IFRIC 21   Adjusted for cost allocation France   515   406   406 Europe excluding France   43   36   36 Latin America   247   247   229 Asia   83   83   83 Global functions   -55   -55   -37 Total   833   717   717 Second half 2014   Reported   Restated for IFRIC 21   Adjusted for cost allocation France   756   865   865 Europe excluding France   382   389   389 Latin America   438   438   430 Asia   14   14   14 Global functions   -37   -37   -29 Total   1,554   1,670   1,670       Full-year 2014   Reported   Restated for IFRIC 21   Adjusted for cost allocation France   1,271   1,271   1,271 Europe excluding France   425   425   425 Latin America   685   685   660 Asia   97   97   97 Gobal functions   -92   -92   -67 Total   2,387   2,387   2,387 First-half 2015   Reported   Adjusted for cost allocation France   321   321 Europe excluding France   122   122 Latin America   296   291 Asia   50   50 Global functions   -63   -58 Total   726   726

Consolidated income statement

      (€m)   2014   2015 Net sales   74,706   76,945 Net sales net of loyalty program costs   74,097   76,393 Other revenue   2,221   2,464 Total revenue   76,318   78,857 Cost of goods sold (59,270) (60,838) Gross margin 17,049 18,019 SG&A   (13,281)   (14,105) Recurring operating income before D&A (EBITDA)   3,803   3,955 Depreciation and amortization   (1,381)   (1,470) Recurring operating income (ROI)   2,387   2,445 Recurring operating income including income from associates and joint ventures   2,423   2,489 Non-recurring income and expenses   149   (257) Operating income   2,572   2,232 Financial expense (563) (515) Income before taxes 2,010 1,717 Income tax expense   (709)   (597) Net income from continuing operations   1,300   1,120 Net income from discontinued operations   67   4 Net income   1,367   1,123 Of which Net income – Group share 1,249 980 Of which net income from continuing operations, Group share 1,182 977 Of which net income from discontinued operations, Group share   67   4 Of which Net income – Non-controlling interests (NCI) 118 143 Of which net income from continuing operations NCI 118 143 Of which net income from discontinued operations NCI   0   0 Net income, Group share, adjusted for exceptional items   1,040   1,113

Consolidated balance sheet

      (€m)   December 31, 2014   December 31, 2015 ASSETS Intangible assets 9,543 9,510 Tangible assets 12,272 12,071 Financial investments 2,810 2,725 Deferred tax assets 759 744 Investment properties 296 383 Consumer credit from financial-services companies – long-term   2,560   2,351 Non-current assets   28,240   27,784 Inventories 6,213 6,362 Trade receivables 2,260 2,269 Consumer credit from financial-services companies – short-term 3,420 3,658 Tax receivables 1,136 1,168 Other receivables 853 705 Current financial assets 504 358 Cash and cash equivalents   3,113   2,724 Current assets   17,500   17,245 Assets held for sale   49   66 TOTAL   45,789   45,095 LIABILITIES Shareholders’ equity, Group share 9,191 9,633 Minority interests in consolidated companies   1,037   1,039 Shareholders’ equity   10,228   10,672 Deferred tax liabilities 523 508 Provisions for contingencies 3,581 3,014 Borrowing – Long-term 6,815 6,662 Bank loans refinancing – long-term   1,589   1,921 Non-current liabilities   12,508   12,106 Borrowings – short-term 1,757 966 Trade payables 13,384 13,648 Bank loan refinancing – short-term 3,718 3,328 Tax payables & others 1,172 1,097 Other debts   3,022   3,244 Current liabilities   23,052   22,282 Liabilities related to assets held for sale   1   34 TOTAL   45,789   45,095

Consolidated Cash Flow Statement

      (€m)   2014   2015 NET DEBT OPENING   (4,117)   (4,954) Gross cash flow (ex. discontinued activities) 2,504 2,733 Change in working capital 19 81 Impact of discontinued activities   86   3 Cash flow from operations   2,609   2,818 Capital expenditure (2,411) (2,378) Changed in net payables to fixed asset suppliers (inc. receivables) (17) 136 Asset disposals (business related) 124 104 Impact of discontinued activities   2   7 Free Cash Flow   306   687 Financial investments (1,336) (85) Proceeds from disposals of subsidiaries and from other tangible & intangible assets 236 109 Others (5) (28) Impact of discontinued activities   11   0 Cash Flow after investments   (789)   682 Dividends/Capital increase (214) (474) Acquisition and disposal of investments without change of control 311 208 Treasury shares (18) 384 Cost of net financial debt (399) (347) Others 287 (44) Impact of discontinued activities   (16)   0 NET DEBT CLOSING   (4,954)   (4,546)

Changes in Shareholders’ Equity

(€m)   Total shareholders’ equity   Shareholders’ equity,Group share   Minorityinterests At December 31, 2014   10,228   9,191   1,037 Total comprehensive income for 2015   1,123   980   143 2014 dividend   (488)   (390)   (98) Impact of scope changes and others   (191)   (148)   (43) At December 31, 2015   10,672   9,633   1,039

Net income, Group share, adjusted for exceptional items

      (€m)   2014   2015 Net income from continuing operations, Group share   1,182   977 Restatement for non-recurring income and expenses (before tax) (149) 257 Restatement for exceptional items in net net financial expenses 3 65

Tax impact 1

(10) (159) Restatement on share of income from minorities and companies consolidated by the equity method   14   (27) Net income, Group share, adjusted for exceptional items   1,040   1,113

2015 dividend payment procedure

The ex-dividend payment date has been set at May 23, 2016. The period during which shareholders may opt for the dividend payment in cash or shares will begin on May 23, 2016 and end on June 10, 2016, included. Payment of the cash dividend and settlement of the stock dividend will occur on June 21, 2016.

1 Tax impact of restated items (non-recurring income and expenses and financial expenses) and non-recurring tax items.

Definitions

Organic sales growth

Like for like sales growth plus net openings over the past twelve months, including temporary store closures.

Gross margin

Gross margin is the difference between the sum of net sales, other income, reduced by loyalty program costs and the cost of goods sold. Cost of sales comprises purchase costs, changes in inventory, the cost of products sold by the financial services companies, discounting revenue and exchange rate gains and losses on goods purchased.

Recurring Operating Income (ROI)

Recurring Operating Income is defined as the difference between gross margin and sales, general and administrative expenses, depreciation and amortization.

Recurring Operating Income Before Depreciation and Amortization (EBITDA)

Recurring Operating Income Before Depreciation and Amortization (EBITDA) excludes depreciation from supply chain activities which is booked in cost of goods sold and excludes non-recurring items as defined below.

Operating Income (EBIT)

Operating Income (EBIT) is defined as the difference between gross margin and sales, general and administrative expenses, depreciation, amortization and non-recurring items

Non-recurring income and expenses are certain material items that are unusual in terms of their nature and frequency, such as impairment, restructuring costs and expenses related to the revaluation of preexisting risks on the basis of information that the Group became aware of during the accounting period.

Free cash flow

Free cash flow is defined as the difference between funds generated by operations (before net interest costs), the variation of working capital requirements and capital expenditures.

Disclaimer

This press release 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 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.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160309006438/en/

CarrefourInvestor RelationsAlessandra Girolami, Mathilde Rodié and Matthew Mellin, +33 (0)1 41 04 28 83orShreholder Relations0 805 902 902 (toll-free in France)orGroup Communication+33 (0)1 41 04 26 17