Grupo Carrefour Brasil - Q4 2020 Results February 18, 2021 - Presentation 4Q20
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Grupo Carrefour Brasil
Q4 2020 Results
February 18, 2021
Q4 20: STRONG PERFORMANCE CONSOLIDATING OUR POSITIONING
» Structural changes in commercial
» Total growth: 32.4%
model
» Market share gains in same stores
» Market share gains: +130 bps in Q4
» Record LFL growth: 27%
» +22% y/y private label products
» Higher participation of B2B clients Building customer volume
» Increase in volumes relationship platforms » New app: 2X more clients and 75%
» E-commerce evolution: +142% vs. Q3 20 engagement of recurring clients
» Rapid conversion of Makro stores with 6 generating more sales
store openings in Q4 » Cybercook: 1.9 mn users (+73% y/y)
» Migration to digital marketing
leverages efficiency gains
» Less out-of-stock and losses
» Growth accelerating with billings up » New e-commerce platform
19.2% y/y generating the highest NPS of the
» Revenues 16.5% higher vs. Q3 20 year in Q4 20
» NPL indicators bel2X more clients » R$949 mn GMV
ow pre-pandemic levels » +163% y/y food e-commerce
» +157% y/y in new accounts through » E-commerce accelerating
digital channels contribution to margin y/y
» Product diversification evolution
A resilient integrated omnichannel ecosystem
2
CONSISTENT STRATEGY DELIVERS ANOTHER STRONG
PERFORMANCE IN Q4...
Q4 2020
GROSS SALES CONSOLIDATED LFL ADJUSTED EBITDA SG&A EVOLUTION AS ADJ. NET INCOME
INCL. PETROL (EX- PETROL) (R$ MILLION) % OF NET SALES GROUP SHARE.
(R$ MILLION) (R$ MILLION)
+24.5% 22.9% +18.2% -163 bps +31.1%
13.3%
21,962 7.6%
1,732 886
12.8%
17,638 12.7% 27.0% 1,465 676
11.2%
5.5%
Q4 19 Q4 20 Q4 19 Q4 20 Q4 19 Q4 20
Q4 19 Q4 20 Q4 19 Q4 20
Atacadão Retail
3
... AND RECORD PROFITABILITY OF 4.1% IN THE FULL YEAR
FY 2020
GROSS SALES CONSOLIDATED LFL ADJUSTED EBITDA SG&A EVOLUTION AS ADJ. NET INCOME
INCL. PETROL (EX- PETROL) (R$ MILLION) % OF NET SALES GROUP SHARE. (R$ MILLION) AND
(R$ MILLION) % OF NET SALES
4.1%
3.4%
+20.1% +18% -134 bps +43.1%
18.2%
3,000
5,500
19.6% 4,500
2,000
74,751 5,610 13.7% 2,758
6.5% 12.4%
62,220 3,500
4,754
9.1% 1,927
17.6%
5.4% 2,500 1,000
2019 2020 2019 2020 2019 2020 2019 2020 2019 2020
Atacadão Retail
4
STRONG CASH GENERATION TO FUND GROWTH
FREE CASH FLOW* LEVERAGE & DEBT NEW DIVIDEND PAYOUT POLICY
(IN R$ MILLION)
25% »»» 45%
R$ 313 mn*
+152% 0.06x net cash/ Adj. EBITDA LTM of Adjusted Net Income
2,426 R$ 482 million payed in 2020
R$ -(1.5 bn)* (IOE)
Includes lease debt (IFRS16)
962 -0.28x net debt/Adj. EBITDA LTM +
*Includes discounted receivables of R$ 2,100 million
R$ 759 million* additional payment
2019 2020 in 2021 (Dividends)
=
Strong cash generation
from EBITDA growth and better
R$ 1,241 million*
Robust balance sheet and R$ 0.62 per share
Working Capital management,
providing high CAPEX (R$ 1,683 strong investment capacity *Subjected to AGM approval in April 13, 2021
million) as well as strong FCF growth
5
*Excluding investments in 30 Makro stores
ATACADÃO: RECORD LFL GROWTH
» Robust growth with strong volumes and relevant contribution from
B2B customers
Gross sales LfL » Digital sales acceleration
» Market share gains in same stores
+32.4% yoy Q4 20 27.0% + 5.4% expansion Q420
» Increase in price gap vs. competitors
+23.2% yoy FY 2020 17.6% + 5.7% expansion FY » Healthy profitability
2020
+22 new stores
LfL ex Calendar Adjusted EBITDA evolution
(in R$ million)
Adjusted EBITDA Adjusted EBITDA Margin 27.0% +28.6%
25.8%
R$ 1.1 billion 7.5% (- 39 bps yoy)
+25.7% yoy Q4 20
Q4 20 +25.7%
8.6% 3,605
7.0%
R$ 3.6 billion 7.7% (+32 bps yoy) 5.5%
2,804
+28.6% yoy FY 2020 847 1,065
FY 2020 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20
Q4 19 Q4 20 2019 2020
Surpassing even the high
level of Q3 6
ATACADÃO: STRONG EXPANSION PACE IN STORES AND ONLINE
+20 Stores and +2 Wholesale operations
Food sales online Evolution
(in R$ million)
2
2
+ 142%
5 vs. Q3 20
2
4
3
2
A unique
Stores 1
network:
Last-mile
delivery 5 206 stores
24 and 30
3
wholesale
operations » In only six months 25% of stores already have last-mile delivery
1
» 131,000 clients through Rappi and Cornershop
2021: Doubling expansion / » Digital sales already represent 2% of revenues of stores in
which service is available
~45 new stores (+22%)
* Including 24 stores acquired from Makro, to be reopened by April/21 + stores from recurring organic expansion 7RETAIL: FURTHER STRONG GROWTH AND INCREASING CLIENT
ENGAGEMENT
» LFL continues at high levels even with cancellation of promotional
campaigns and Black Friday
New Meu Carrefour App
+14.2%* Q4
Food 19.8% Total LfL
+13.3%* LfL Q4 +14.3% FY 2020
+19.6% FY 2020
25.9% Non-food LfL
Customer base 2X bigger since
ex-petrol +12.2%* Q4 in Q4 20 excluding launch and already representing
Non-food Black Friday**
+27.3% FY 2020
75% of recurring clients in the
*includes e-commerce stores
** Week from November 20 to 30, 2020
Outpacing the market in 2020
21.4% 23.0% +150 bps Increase in incremental sales per client
yoy
+130 bps
Market share yoy
Hyper Market share
12.8% 12.5% FY 2020 Hyper Q420
1.9 million users in December
+200 bps
Market share yoy
Retail Hypermarkets over the last 2 years
Carrefour Market
Source: Nielsen
Nielsen methodology shows slightly different growth for Carrefour Retail. 8RETAIL: A STEP-UP IN PROFITABILITY
» A winning and optimized model: More efficient promotional dynamics and greater engagement
» Efficiency gains: SG&A with marginal growth leading to dilution as % of net sales
» Increase in e-commerce contribution
» EBITDA growth despite the impact of petrol and galleries
Gross Margin SG&A and % of Net Sales Retail Adjusted EBITDA 2020
(in R$ million)
2000
6000
30.00%
-133 bps 25.00%
+48%
1800 Q4 20 Adjusted EBITDA
19.3%
-102 bps 18.0% R$ 455 million
5000 25.00%
1600 20.00%
18.0% +42.2% yoy
1400
16.9%
4000 20.00%
15.00%
1200
1000 3000 15.00%
10.00%
800
3,698
2000
3,532
10.00%
24.9% 25.1% 600
Q4 20 Adjusted EBITDA Margin
24.6% 938 948
8.1%
400 5.00%
1000
5.00%
23.9%
(+200 bps yoy)
200
Adj.EBITDA Retail Petrol Adj. EBITDA
0 0 0.00% 0.00%
Q4 19 Q4 20 2019 2020 Q4 19 Q4 20 2019 2020 2019 + 2020
Galleries
9DIGITAL: GMV NOW ABOVE R$ 3,3 BILLION
New Carrefour e-commerce platform:
Record food NPS in October, closing the year » GMV at high levels for three consecutive quarters
c
with 90% growth vs. 2019
» Food e-commerce: 163.3%* growth
Cancellation of promotional campaigns and Total GMV* (In R$ million)
c Black Friday event impacting non-food GMV:
1P non-food GMV: -3.1% in Q4 20 or +24.5%
excluding Black Friday*
Retail:
+14% +49%
31% of total non
food sales
Acceleration in e-commerce with positive
c trends in January 5% of total food
833 918 895 949 3,337 sales
550 2,243
Atacadão:
2% of total sales in
Structural changes positively impacting e- Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 2019 2020 stores with digital**
c commerce results and margin
*Includes last-mile delivery
**25% of Atacadão stores already has e-commerce
* Week from November 20 to 30, 2020 10BANCO CARREFOUR: CRISIS ALREADY OVERCOME, TOWARDS THE
NEXT STAGE OF GROWTH
Improvement in risk indicators:
Sales volume and R$ 13.5 billion credit Below pre-crisis levels
average ticket portfolio (IFRS9) +17%
yoy
Volume Natural rollout of
recovering the portfolio
Billings
+19.2 %
Over 30 and Over 90 – BRGAAP* (%)
17.0%
12.9% 13.9% 13.8%
11.2%
13.1% 11.8%
9.9% 10.6% 9.3%
Q4 19 Q1 20 Q2 20 Q3 20 Q4 20
Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Over 90 Over 30
Accelerating the recovery Adjusted EBITDA: R$ 266 million
c after the peak of Covid-19 (vs. R$ -4 million in Q3 20)
*Information according to BACEN methodology No. 2682/99 11BANCO CARREFOUR: DIGITAL ACCELERATION AND DIVERSIFICATION
New products and channels gaining traction
APAG already available in 65 Digital wallet available in Record in new accounts through digital
54 stores channels in Q4 20:
stores and 22 states in
February/21 +157% yoy (32% of the total in Q4 20)
Inclusion of revolving credit
Digital Penetration Personal Loans
(app + website + TAS + Whatsapp
active users / active portfolio)
c (% digital application)
70%
81%
66%
49% 48%
61%
58%
23%
mar/20 jun/20 sep/20 dec/20 Q1 20 Q2 20 Q3 20 Q4 20
12REAL ESTATE: EXTRACTING VALUE FROM OUR REAL ESTATE ASSETS
290 real estate assets with
13.6 million sqm Renewed Stores and Galleries
» Great potential to be explored by multiplying the efficiency of real estate
assets with minimal investments
» Real estate development program focused on boosting our sites through
the Carrefour ecosystem Mixed use projects
Corporate + Residential + Commercial
» Transformation of existing stores and galleries integrated with real estate
development capturing additional value
» 68 prioritized projects: Potential development increases the currently
explored area by 5-7x
12% 1%
% Occupation of
the prioritized
projects 25%
62% Better infrastructure Higher traffic
Higher service offer Less investment risk
< 20% 20-40% 40-60% > 60%
13ICONIC PROJECT IN SÃO PAULO’S MARGINAL PINHEIROS STARTED IN FEB/21
Site of Grupo Carrefour Brasil’s first store, inaugurated in 1975
Existing Developed
Strengthening 1
Corporate tower
the ecosystem
and
generating
value with
minimal 3 Business/residential
investment tower
2 Residential
building
6
Theater
5
BENEFITS FOR CARREFOUR Commercial
4 Hyper and
area
shopping center
R$ 550 million (4x swap)
7 Park
Public
• 14.000 sqm in corporative area 78% land 8
transportation
• Galleries 3X bigger
• New hypermarket Mixed use complex Increase in traffic
13,000+ permanent residents and workers Profitability 2X higher
320,000 sqm of total constructed area Construction works
initiated 14RESPECT AND EQUAL OPPORTUNITIES FOR ALL
MAIN FRONTS MAIN INITIATIVES
Combating racism Diversity Committee
Gender equality, LGBT inclusion and PCD “Carrefour por Elas”
Social project to access basic needs “Amigos do Bem”
www.naovamosesquecer.com.br
TodXs+
R$ 40 million fund to the anti-racist cause
8 COMMITMENTS TO THE ANTI-RACIST FIGHT
+95 MIL 1. Zero tolerance for racism and discrimination
65 TRANSGENDERS 253 REFUGEES
EMPLOYEES 2. Radical transformation of the security model
BLACKS/COLORED IN THE GROUP 3. Disclosure of the zero tolerance policy for
WOMEN IN THE GROUP discrimination
4. Investment in the career of black people
36.5% in
leadership 54.4% in leadership 5. Private social investment in education,
positions positions entrepreneurship and employability
6. Minimum percentage of 50% of blacks in new hires
48% 7. Prejudice and discrimination reporting mechanism
21%
63% Senior directors 8. Stimulating black entrepreneurship
15FIGHTING TO PRESERVE THE PLANET
ZERO DEFORESTATION CIRCULAR ECONOMY
» CO2 Emissions: Global Group CO2 Emissions
90’s Guarantee of Origin Seal commitment to reduce them by
30% by 2030 and 55% by 2040. -19%
» Livestock and sustainable fishing
Member of the » Plastics reduction
Sustainable Livestock 2007
» Recycling stations
Working Group
» Reduction in energy consumption 2019 2020
2010 Committed to
Zero Deforestation FIGHTING AGAINST WASTE
Sustainable Meat » Unique and Sansform: Sale of non-
2016
Policy • Elaboration of the Harmonized Protocol standard products - 38% increase in
• 100% of meat suppliers monitored (vs. sales in 2020
40% in 2019) » Handling care
2020 • Creation of the livestock committee
• Partnership with WWF to track soy in feed » Repackaging
protein chain by 2025 » Cybercook: Recipes for reusing food
Pioneer in adopting a • Small producers onboarding platform
park in the Amazon 2021
16ANIMAL WELFARE
SWINE CHAIN LAYING HENS
» First retailer in Brazil to announce animal welfare
» Ambition: Commercialize only cage-free
commitment in the pork chain until 2025 for Private
eggs until 2028
Label and 2028 for other brands.
» 2020 Achievements: » 2020 Achievements:
» Tooth clipping done only curatively
» 100% of eggs sold under the “Sabor &
Qualidade” private label from cage free hens
» Gestation cage time reduced from
achieved 2 years ahead of deadline
35 to 28 days – Goal
33% of Carrefour's private labor suppliers integrated in
the cage free system
ANIMAL CAUSE
» Creation of the first Ampara Animal Hospital in SP, in partnership with Carrefour,
which offers free castration for dogs and cats, from residents of the peripheries
» More than 7,300 animals benefited
Donation of food for animals rescued from the Pantanal fires and more than 120
»
tons of feed donated throughout Brazil
172020: ANOTHER YEAR OF ACCELERATION IN OUR ECOSYSTEM
Atacadão
Record sales marketplace
growth
Super APP Banco
Carrefour
digitalization
Market
New share gains
e-commerce
platform Profitable
strategy in e-
commerce Strong cash
generation
Acquisition of
Makro stores
Higher
share of New
wallet commercial
dynamics in New loyalty
retail program B2B client
integration in
Among the
Investments in e-commerce
lowest
distribution costs Successful health and
Volume in Brazil last mile safety in the
growth (Atacadão) delivery face of
partnerships COVID-19
18GOING FORWARD: MUCH MORE GROWTH AHEAD
2020 ACHIEVEMENTS 2021 PROSPECTS
Market share gains Further increase: Recognized and more competitive models
Changes in consumer behavior More people eating at home
Acquisition of 30 Makro stores Stores converted and reopened by April 21 + organic expansion
• Roll-out of last-mile delivery at Atacadão (now available in 25% of
“Boom” in food e-commerce the stores)
(5% penetration in 2020 vs. 1% in 2019) • Ramp-up of the new e-commerce platform
• Growth of the Carrefour and Atacadão marketplace
Banco Carrefour: Rapid recovery from the crisis; Strong growth in 2021: More digitalized operation + new products =
improvement in credit indicators; strong portfolio growth step-up in business
Minimizing the impacts of the crisis on some activities: gas
Recovery: Returning to 2019 levels
stations, galleries and Black Friday cancellation
19DISCLAIMER
This document contains both historical and forward- c IR Contact
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 Sébastien Durchon
assumptions. Such statements are not guarantee of Vice-President of Finance (CFO) and
future performance. Actual results or performances may Director of Investor Relations
differ materially from those in such forward-looking
statements as a result of a number of risks and Natália Lacava
uncertainties, including but not limited to the risks Investor Relations Director
described in the documents filed with the CVM (Brazilian
Securities Commission) in particular the Reference Form. Ludimila Aielo | Victor Bento
The Company does not assume any obligation to Investor Relations Specialists
update or revise any of these forward-looking
statements in the future.
Telephone: +55 11 3779-8500
ribrasil@carrefour.com
www.grupocarrefourbrasil.com.br
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