16/02/2022 - Carrefour SA: Earnings Document

Q4 2021 sales and FY 2021 results

February 16, 2022

2021 Results

Strong +8% increase in Recurring Operating Income, driven by France (+20%)

Record Net Free Cash Flow generation: €1,228m

New €750m share buyback in 2022

• LFL sales growth of +2.3% in 2021 on a record comparable base

1. +10.1% LFL over 2 years(1) in 2021, with a consistent trend across quarters (+9.4% LFL on a 2-year stack in Q4)

• 1. Market share gains in the Group's key countries, notably in France, Spain and Brazil
  1. +20% growth in food e-commerce activity
• ROI(2) increase: +7.7% (+€168m) at constant exchange rates, to €2,272 in 2021, after +16.4% in 2020
• 1. In France, ROI improved by +20.4% (+€128m), ROI margin improved by +30bps at 2.1%
• Adjusted EPS growth of +17.2% in 2021, at €1.47
• Record Net Free Cash Flow(3) generation at €1,228m in 2021, after €1,056m in 2020
• Cost savings: €930m achieved in 2021; 2021-2023target raised to €2.7bn (vs an initial objective of €2.4bn)
• Two targets of the Carrefour 2022 plan achieved one year ahead of plan:
• 1. 2,994 convenience store openings at end-2021 (vs a target of +2,700 at end-2022)

• 1. €330m non-strategic real estate assets disposals at end-2021 (vs a target of €300m at end-2022)
• Capital allocation policy:
• 1. 2021 capex of €1,626m; expected at €1.85bn in 2022, including c.€150m related to the integration of Grupo BIG, as well as an increase in digital investments, as announced at the Digital Day

1. Dividend of €0.52 per share to be proposed at the Annual General Meeting o New €750m share buyback in 2022

Alexandre Bompard, Chairman and CEO, declared: "Carrefour posted a very strong performance in 2021, confirming

the sound execution of its strategic plan. Our omnichannel model continues to expand and attract customers: our digital initiatives place us in a leading position in new markets, our store network is growing at a fast pace - allowing us to achieve our target for openings in growth formats a year ahead of schedule - and we are recording market share gains in our key countries. This commercial momentum is reflected in an equally solid financial performance, with sales growth despite a high comparable base, a marked improvement in our operating profit, particularly in France, and a record level of net free cash flow generation. The Group's financial position enables to announce a new share buyback. Our Group also stepped up its action in favor of the food transition for all in 2021, in particular regarding inclusion and the fight against climate change, and again exceeded its targets.

I would like to thank all our employees, who have been mobilized for two years now in a difficult sanitary context, for these results. They attest to the success of the Group's transformation and give us great confidence in our performance ahead. We look to the future with great ambition and will present our next strategic plan in early fall."

Note: (1) Sum of FY 2020 LFL and FY 2021 LFL; (2) Recurring Operating Income includes income and expenses related to COVID-19 effects. Exceptional bonuses and similar benefits to Group employees in 2020 (€128m in H1) are accounted for under other non-current income and expenses; (3) Net Free Cash Flow corresponds to free cash flow after net finance costs and net lease payments. It includes cash-out of exceptional charges

PAGE 1

Q4 2021 sales and FY 2021 results			February 16, 2022
	2021 KEY FIGURES
	(in €m)	2020	2021	Variation
	Sales inc. VAT	78,609	81,245	+2.3% LFL
	Recurring operating income (ROI)	2,173	2,272	+7.7%, +€168m
	(at constant FX)
	Recurring operating margin	3.1%	3.1%	+4bps (+8bps at constant FX)
	Operating income	1,686	1,911	+13.3% / +€225m
	Net income, Group share	641	1,072	+€431m
	Adjusted net income, Group share	1,011	1,158	+€146m
	Adjusted EPS	1.26	1.47	+17.2%
	Net Free Cash Flow	1,056	1,228	+€172m
	Net financial debt (at December 31)	2,616	2,633	+€16m

2021 RESULTS REFLECT THE SUCCESS OF CARREFOUR'S TRANSFORMATION

In 2021, Carrefour sales continued to grow (+2.3% LFL) on a very high comparable base (+7.8% LFL in 2020) and in a context of easing sanitary constraints for out-of-home consumption.

This performance attests to the continuous improvement in the Group's model and reflects solid momentum of market share gains in all key countries. The Group's digital strategy is also bearing fruit, with +20% growth in food e-commerce activity.

Carrefour reached its targets for convenience store openings and disposals of non-strategic real estate assets at end-2021, one year ahead of plan. The Group also significantly strengthened its presence in growth formats with the acquisition of Grupo BIG in Brazil, whose closing is expected at the end of Q2 2022; synergies, initially expected at R$1.7bn, have been raised to above R$2.0bn. In parallel, Carrefour continued to optimize its operating model with the transfer, in France, of 10 hypermarkets and 44 supermarkets to lease-managementin 2021. A new program of 43 stores (16 hypermarkets and 27 supermarkets) was announced, with the first transfers expected starting in March 2022.

Focus on customer satisfaction is paying off, with a further NPS® improvement in 2021.

With inflation accelerating, the Group is more committed than ever to protecting its customers' purchasing power, while continuing to reinforce its economic model. In this context, Carrefour has intensified its cost savings momentum. After achieving €930m in savings in 2021, allowing the Group to absorb the first impacts of inflation observed during the second half, Carrefour is raising its cost savings target to €2.7bn by 2023 on an annual basis, vs a previous target of €2.4bn.

The Group's recurring operating income was up +7.7%, thanks notably to an excellent performance in France (+20.4%) where ROI margin continued its rapid progression.

Profitability increase went hand in hand with record net free cash flow generation of €1,228m, allowing the Group to continue its investments, notably in digital, and to consider external growth opportunities. In addition, the dividend was raised by +8% to €0.52 per share (to be proposed at the General Meeting on June 3, 2022) and the Group is launching a new share buyback for €750m, after €700m carried out in 2021.

PAGE 2

Q4 2021 sales and FY 2021 results

February 16, 2022

2021 COMMERCIAL AND OPERATIONAL PERFORMANCE BY REGION

France: Further excellent commercial momentum and ROI up by +20%

In 2021, all segments grew again, on the back of a record base in 2020. 2021 LFL sales were up +1.8% (+2.4% LFL in food, -1.7%LFL in non-food), or LFL growth of +5.4% on a two-year stack1. Carrefour market share in France improved by +0.2 points2 over the year. The Group outperformed in each of the benchmark channels: hypermarkets, supermarkets, convenience and Drive3. E-commercein France increased by +80% vs 2019 (+19% vs 2020), with food up +77% (+18% vs 2020).

Recurring operating income for 2021 was up +20.4% (+€128m) to €757m, compared to €629m in 2020. Operating margin increased by +30bps to 2.1%, after a +24bps improvement in 2020. This evolution reflects the excellent dynamics of retail activities, combined with strong cost savings momentum.

Europe (excl. France): Good momentum, notably in Spain

LFL sales were up +2.3% over two years (-1.1% in 2021 after +3.5% in 2020).

In Spain, sales were broadly stable (-0.4% LFL/+6.7% over 2 years), after strong growth in 2020. Carrefour continued to gain market share in 2021 (+0.3pt).

Italy (-3.0%LFL/-8.2% over 2 years) improved sharply over the year and returned to positive territory in H2 (+0.8% LFL in Q3, +2.5% LFL in Q4), driven by an offensive commercial strategy and a strong improvement in NPS®.

In Belgium (-4.2% LFL/+4.1% over 2 years), the performance over two years remained very solid. However, activity was penalized by a deflationary competitive environment, a high comparable base during the summer season and supply shortages in Q4 due to important disruptions at a major logistics partner.

Poland (+3.0% LFL/+2.3% over 2 years) benefitted from a favorable dynamic, notably with a recovery in household consumption and the reopening of shopping malls in 2021.

Finally, in Romania (+2.0% LFL/+4.1% over 2 years), the Group maintained good momentum, driven by a strong improvement in NPS®.

Recurring operating income in Europe in 2021 was up +3.3% (+€23m) at constant exchange rates to €718m, compared to €698m in 2020. Operating margin increased by +9bps to 3.4%. All countries, except Belgium, posted an increase in ROI and ROI margin. Profitability improvement in 2021 was particularly marked in Spain and in Italy.

Latin America: Solid performance in a difficult economic environment

In 2021, sales growth remained high in Latin America (+9.3% LFL), after a record year in 2020 (+23.0% LFL).

• In Brazil, LFL sales were up +1.0% in 2021, on a very high comparable base (+18.2% in 2020). This is a solid performance in a macroeconomic environment that deteriorated over the year, with high inflation weighing on consumer purchasing power. Food sales continued to grow; non-food sales were down on an exceptionally high year in 2020 but remained up +10% over two years. In addition, Atacadão finalized

1. Sum of FY 2020 LFL and FY 2021 LFL
2. Market shares based on NielsenIQ RMS data for total food and non-food sales for the 52-week period ending 02/01/2022 for Carrefour Group vs the French total retail market (Copyright © 2022, NielsenIQ)
   3Market shares based on NielsenIQ RMS data for total food and non-food sales for the 52-week period ending 02/01/2022 for Carrefour Hypermarkets vs total Hypermarket banners, Carrefour Supermarkets vs total Supermarket banners, Carrefour Convenience vs total Convenience banners, Carrefour Drive vs total Drive banners in France (Copyright © 2022, NielsenIQ)

PAGE 3

Q4 2021 sales and FY 2021 results

February 16, 2022

the conversion of Makro stores, whose ramp-up is faster than expected, delivering higher results than anticipated

• In Argentina, LFL sales were up +50.0%, after +49.3% in 2020. Beyond high food inflation, this excellent performance reflected a strong increase in volumes, translating into continued market share gains

Recurring operating income in Latin America for 2021 was up +6.3% (+€49m) at constant exchange rates to €768m, after a strong increase of +26.4% in 2020.

• In Brazil, ROI was up +€9m at constant exchange rates, to €714m, after a strong increase of +€184m in 2020. Improvement in financial services and Atacadão's ROI in 2021 was partly offset by the impact of decreasing non-food sales at Carrefour Retail, on a high comparable base. The Group continued its investments in competitiveness, in a deteriorated sanitary and economic environment
• In Argentina, ROI kept improving noticeably thanks to excellent commercial momentum and the continued focus on costs. ROI amounted to €55m, representing a 2.4% margin (+112bps), including an impact of -€17m linked to the application of IAS 29

Taiwan (Asia): Wellcome integration

In Taiwan, 2021 sales were up +16.7% at constant exchange rates (-3.0% LFL), thanks notably to the acquisition of Wellcome convenience stores.

2021 ROI was down to €78m, compared to €94m in 2020, notably due to the integration of Wellcome stores that are under transformation and the impact of sanitary measures, penalizing traffic in hypermarkets and shopping malls.

A SOLID FOURTH QUARTER

The Group's sales amounted to €22,170m pre-IAS 29, growing by +5.7%. This Q4 evolution includes an unfavorable foreign exchange impact of -0.6%, notably due to the depreciation of the Argentine Peso, a favorable petrol impact of +3.7%, a calendar effect of -0.1%, an openings effect of +1.0% and an acquisitions effect of +1.9%. The impact of the application of IAS 29 was +€176m.

LFL sales were up +0.7%, after strong LFL growth of +8.7% in Q4 2020. This performance attests to good commercial momentum, notably during the festive period around Christmas.

In France, Q4 2021 sales were down -0.3%LFL (+0.2% LFL in food, -3.2% LFL in non-food). Over two years, LFL sales were up +5.2%, accelerating sequentially in all formats, notably in hypermarkets, where the cumulative performance improved from -0.3% in Q3 to +2.1% in Q4. Non-food LFL sales in France were up by +2.5% over two years, driven by strong growth in 2020. The recovery of sales to bars and restaurants enabled Promocash's activities to regain the ground lost in 2020.

				Q4
	LFL variation excl. petrol excl.	2021		2-year stack
	Calendar
	Hypermarkets	-1.8%	+2.1%
	Supermarkets	-1.3%	+8.5%
	Convenience/other formats	+6.9%	+8.9%
	o/w convenience	+1.8%	+7.7%
	France		-0.3%		+5.2%

PAGE 4

Q4 2021 sales and FY 2021 results

February 16, 2022

In Europe, LFL sales remained stable, with an increase of +1.7% over two years.

• In Spain (+1.6% LFL/+7.6% over 2 years), Carrefour posted solid growth, reflecting market share gains in a context of rising food inflation in the last months of the year. The acquisition of Supersol stores was finalized in March and all stores have now been converted to Carrefour banners
• In Italy (+2.5% LFL/-5.1% over 2 years), Carrefour continued its recovery and posted a sequential acceleration in growth (+2.5% LFL after +0.3% LFL in Q3 2021). Improvement in customer satisfaction and price perception translated into a record level of NPS®
• In Belgium (-6.8%LFL/-1.2% over 2 years), the quarterly performance reflected the market contraction, marked by deflationary pressures on food, as well as supply shortages due to important disruptions faced by a major logistics partner
• In Poland (+5.7% LFL/+1.6% over 2 years), Carrefour's good commercial momentum continued, in a context of accelerating inflation
• In Romania, (-3.3%LFL/-1.8% over 2 years), the Group was penalized by its exposure to hypermarkets located in shopping centers, whose access has been limited since October to vaccinated people (c.40% of the population)

In Latin America, Q4 LFL sales were up +4.0%, with an increase of +29.3% over two years.

• In Brazil (-6.1% LFL/+16.8% over 2 years), sales were up +3.7% at constant exchange rates in Q4 2021, driven by the contribution from openings and acquisitions for +8.0%. LFL sales were down in Q4 on a high comparable base (+22.9% in Q4 2020), notably in non-food, in a difficult economic and sanitary environment impacting customer purchasing power. Over two years, LFL growth remained very strong, at +16.8%

1. Atacadão's sales were up +6.6% at constant exchange rates in Q4 2021. Store openings and the acquisition of Makro stores contributed for 10.9% to growth. Q4 2021 LFL sales were down -5.0% but posted strong +21.9% growth over 2 years

1. The sales decrease at Carrefour Retailin Q4 2021 (-9.2% LFL/+4.2% over 2 years) was

exclusively linked to non-food, which had grown very strongly in 2020 in the context of COVID-

19. Over two years, Carrefour Retail posted LFL growth of +4.2%, including double-digit growth in food sales

1. Food e-commercegrew by +146% and was up more than six-fold over two years

• 1. Financial servicesmaintained their good momentum; billings were up +14.6% in Q4
• In Argentina (+61.0% LFL/+100.7% over 2 years), the Group posted an excellent performance and strengthened its leadership thanks to significant market share gains. Carrefour's volumes strongly increased in a market in which they declined, amid a persistently high inflationary context

In Taiwan, Q4 LFL sales were up +2.3%, despite the impact of constraints due to the pandemic. The distribution by the government of purchasing coupons offered to boost the economy resumed in October. Over two years, LFL growth reached +2.4%.

PAGE 5