Carrefour: First-Half 2017 Results

Solid sales growth of +6.2%Recurring operating income of €621m

Regulatory News:

Carrefour (Paris:CA):

Net sales up +6.2% to €38.5bn, reflecting the combination of a good like-for-like performance and the effect of expansion:
- Opening of 352 stores under banners in the half, of which 290 convenience stores, mainly in Europe
- Successful integration of the Eroski stores in Spain and Billa stores in Romania
Recurring operating income (ROI) of €621m, down 12.1% at current exchange rates, resulting in an operating margin of 1.6%, notably reflecting:
- A 70 basis point drop in operating margin in France, due to a strongly competitive and promotional market and the increase vs. H1 2016 of losses at ex-DIA stores
- An increase in losses in Argentina, where the economic recovery is taking time to materialize

These results also reflect:

A pause in profitability improvement in Other European Countries, notably linked to the non-recurring impact of integrating acquisitions
A first improvement in operating profitability in Asia
Margin holding up well in Brazil, despite lower contribution from financial services, notably linked to a regulatory change on consumer credit

Free cash flow excluding exceptional items and Cargo of -€2,587m vs. -€2,106m in H1 2016, due to a short-term variation in working capital requirements
Successful stock market listings of Grupo Carrefour Brasil and Carmila in July 2017
Carrefour’s new management team is fully focused on improving the Group’s performance and adapting to the rapid and far-reaching evolutions within the industry. Management will come back to the market by the end of the year.

First-half 2017 key figures

(in €m) H1 2016 H1 2017 Variation Variation at constant exchange rates at current exchange rates Gross sales 40,552 43,053 +3.3% +6.2% Net sales 36,289 38 526 +6.2% Recurring operating income before D&A (EBITDA) 1,448 1,431 -7.0% -1.2% EBITDA margin 4.0% 3.7% Recurring operating income (ROI) 706 621 -21.5% -12.1% ROI margin 1.9% 1.6% Adjusted net income, Group share 235 154 -34% Net debt at closing 7,367 7,72 +€353m

H1 2017 SALES INC. VAT: Solid sales in the first half

Carrefour’s first-half sales including VAT stood at €43,053m, up +6.2%. Over the period, currencies had a favorable effect of +2.8% while petrol had a favorable effect of +0.5%. Carrefour’s first-half sales grew by +2.6% on an organic basis, with a contribution from emerging markets that remains solid at +6.4% despite a slowdown of inflation in several countries, and an increase of 1.1% in Europe, including France.

In the second quarter, Carrefour’s total sales grew by +6.1%, and by +2.8% like-for-like.

In France, sales grew this quarter by +0.8% on a reported basis and +1.9% like-for-like. In Other European countries, second-quarter sales once again increased sharply, by +8.6% in total and +3.4% like-for-like.

In Latin America, second-quarter sales were up +6.9% like-for-like and +20.0% in total, including a favourable +8.9% currency effect. This good performance was achieved in the context of a strong slowdown of food inflation in Brazil and a challenging economic environment that continued to weigh on consumption in Argentina.

In Asia, second-quarter sales were down by -2.3% in total (-4.7% on a like-for-like basis). China posted a drop in like-for-like sales of -6.6% and like-for-like sales in Taiwan improved for the tenth consecutive quarter by +0.6%, on the back of a high comparable base.

First-half 2017 results: Recurring Operating Income of €621m

Income statement

Group Recurring Operating Income (ROI) stood at €621m and adjusted EBITDA1 stood at €1,431m, slightly down by -1.2% at current exchange rates and -7.0% at constant exchange rates.

In France, the Group continued to roll out its multiformat and omnichannel strategy in the first half of 2017. ROI stood at €199m, representing an operating margin of 1.1% (-70bps year-on-year). This evolution takes into account higher promotional investments in a very competitive environment, as well as targeted price adjustments in certain stores to improve Carrefour’s competitiveness. France’s operational performance was also impacted by the increase vs. H1 2016 of losses at ex-DIA stores.

In Other European countries (excluding France), ROI stood at €149m, with operating margin slightly down by 10bps to 1.5%. This variation includes the impact of the transformation and integration of Eroski stores in Spain and Billa stores in Romania.

In Latin America, first-half ROI rose to €293m, up +7.5%, while operating margin stood at 3.6% (down 60bps). In Brazil, the profitability of our distribution activities continued to increase, while financial services were impacted by a change in regulation on consumer credit as well as by start-up costs linked to the launch of the Atacadão card. The consumption environment remained very difficult in Argentina, marked by pressure on volumes and high inflation, impacting the Group’s margin.

In Asia, the first half saw an improvement in profitability, with ROI of €12m vs. an operating loss of €7m in H1 2016. The Group is reaping the benefits of the action plans implemented in China, in particular in terms of cost reduction, in a very competitive environment marked by rapidly-changing consumer habits. In Taiwan, sales growth continued and operating margin posted further improvement.

In the first half of 2017, non-recurring income was a charge of €150m, principally attributable to reorganization costs in various countries. This compares to a charge of €114m in H1 2016. Net income from continuing operations, Group share, stood at €79m, including the following elements:

a share of Net income from companies accounted for by the equity method that improved sharply by €33m;
Stable net financial expenses;
An effective tax rate that stood at 37.5% vs. 31.3% in H1 2016.

Net income, Group share, stood at €78m. Adjusted mainly for non-recurring income, net income Group share stood at €154m.

Cash flow and debt

In H1 2017, gross cash flow stood at €976m vs. €1,088m in H1 2016. Working capital requirements went from -€2,052m in H1 2016 to -€2,517m in H1 2017.

Total capex stood at €991m vs. €1,057m in H1 2016. Excluding Cargo, capex was €904m, down by €64m year-on-year.

Free cash flow stood at -€2,736m, reflecting the seasonality of our business. Excluding Cargo and exceptional items, free cash flow stood at -€2,587m.

Dividend payments this year will occur in H2. Investments linked to Cargo resulted in a cash inflow in the « Capital increase » line and accounted for most of it.

In total, net financial debt at June 30, 2017 stood at €7.7bn, also reflecting the seasonality of our business.

2017 outlook

Groupe Carrefour 2017 sales will grow by 2% to 4% at constant exchange rates in the full year.

Our 2017 results will be impacted by our H1 performance and an operating environment that will remain difficult in H2 in some countries. At current exchange rates, our full year 2017 ROI evolution vs 2016 should be roughly in line with the evolution we saw in H1 2017.

Carrefour will strengthen its financial discipline, with investments reaching between €2.2bn and €2.3bn in the full year (excluding Cargo Property), vs. the initial forecast of €2.4bn. The Group aims to reach free cash flow in 2017 at the same level as in 2016.

Carrefour’s new management team is fully focused on improving the Group’s performance and adapting to the rapid and far-reaching evolutions within the industry. Management will come back to the market by the end of the year.

Agenda

Q3 2017 sales: October 18, 2017

APPENDIX

First-half 2017 sales inc. VAT

The Group posted sales of €43,053m. In the half, currencies had a favorable impact of +2.8%, largely due to the appreciation of the Brazilian Real. Petrol prices had a favorable impact of +0.5%. Calendar had an unfavorable effect of -0.6%.

Total sales inc. VAT (€m) Change at current exchange rates inc. petrol Change at constant exchange rates inc. petrol LFL inc. petrol LFL ex petrol ex calendar Organic growth ex petrol. Ex calendar France 19,348 +0.8% +0.8% +2.1% +1.3% +0.1% Hypermarkets 9,859 +0.0% +0.0% +0.6% -0.5% -1.0% Supermarkets 6,333 +0.3% +0.3% +2.5% +2.0% +0.0% Convenience /other formats 3,156 +4.2% +4.2% +6.1% +5.6% +3.9% International 23,706 +11.0% +5.6% +2.2% +2.8% +4.6% Other European countries 11,163 +6.1% +6.0% +2.2% +2.2% +2.8% Spain 4,413 +6.9% +6.9% +1.6% +1.5% +2.0% Italy 2,719 +2.0% +2.0% +3.2% +2.7% +1.6% Belgium 2,127 -0.3% -0.3% +0.0% +0.3% +0.1% Latin America 9,057 +25.2% +10.0% +6.1% +7.3% +11.3% Brazil 7,305 +30.0% +8.4% +3.7% +5.0% +9,9% Asia 3,485 -3.3% -4.4% -5.8% -4.3% -2.9% China 2,482 -8.4% -6.5% -7.4% -6.0% -5.1% Group total 43,053 +6.2% +3.3% +2.1% +2.1% +2.6%

Total sales under banners including petrol stood at €52.1bn in the first half of 2017, up +4.9% at current exchange rates.

Second-quarter 2017 sales inc. VAT

The Group posted sales of €21,759. Currencies had a favorable impact of +1.8%, largely due to the appreciation of the Brazilian Real. Petrol prices had an unfavorable impact of -0.3%. Calendar impact was a favorable +0.3%.

Total sales inc. VAT (€m) Change at current exchange rates inc. petrol Change at constant exchange rates inc. petrol LFL inc. petrol LFL ex petrol ex calendar Organic growth ex petrol ex calendar France 9,942 +0.8% +0.8% +2.0% +1.9% +0.7% Hypermarkets 5,012 +0.8% +0.8% +1.5% +0.5% -0.1% Supermarkets 3,280 -0.3% -0.3% +1.8% +1.9% -0.2% Convenience/Other formats 1,650 +3.1% +3.1% +3.9% +6.7% +5.1% International 11,817 +11.1% +7.6% +3.8% +3.4% +5.4% Othere European countries 5,778 +8.6% +8.4% +3.7% +3.4% +4.2% Spain 2,302 +9.4% +9.4% +2.5% +2.6% +3.1% Italy 1,392 +4.3% +4.3% +5.1% +3.9% +3.1% Belgium 1,101 +2.2% +2.2% +2.2% +2.4% +2.3% Latin America 4,540 +20.0% +11.1% +7.2% +6.9% +10.9% Brazil 3,638 +23.2% +9.5% +4.8% +4.5% +9.4% Asia 1,499 -2.3% -3.5% -4.5% -4.7% -3.7% China 1,036 -8.0% -5.9% -6.2% -6.6% -6.4% Group total 21,759 +6.1% +4.4% +3.0% +2.8% +3.3%

Total sales under banners stood at €26.3bn in the second quarter of 2017, up +5.2% at current exchange rates.

First-half 2017 net sales and Recurring Operating Income by region

Net sales Recurring Operating Income

(in €m)

H12016 H12017 Variation at constantexchange rates Variation at currentexchange rates H12016 H12017 Variation at constantexchange rates Variation at currentexchange rates France 17,179 17,307 +0.7% +0.7% 312 199 -36.1% -36.1% Other Europeancountries 9,428 10,010 +6.0% +6.2% 155 149 -3.7% -3.9% Europe 26,607 27,317 +2.6% +2.7% 467 348 -25.4% -25.4% Latin America 6,453 8,075 +9.4% +25.1% 273 293 -15.5% +7.5% Asia 3,229 3,135 -4.3% -2.9% -7 12 n/a n/a Emerging countries 9,682 11,209 +4.8% +15.8% 266 306 -9.9% +15.1% Global functions -26 -33 TOTAL 36,289 38,526 +3.2% +6.2% 706 621 -21.5% -12.1%

First half 2017 consolidated income statement

(in €m) H1 2016 H1 2017 Net sales 36,289 38 526 Net sales, net of loyalty program costs 36,017 38 228 Other revenue 1,275 1 354 Total revenue 37,292 39 582 Cost of goods sold -28,860 -30 762 Gross margin 8,432 8 821 SG&A -7,006 -7,419 Recurring operating income before D&A (EBITDA) 1,448 1,431 Depreciation and amortization -720 -781 Recurring operating income (ROI) 706 621 Recurring operating income including income from associates and joint ventures 686 633 Non-recuring income and expenses -114 -150 Operating income 572 484 Financial expense -248 -247 Income before taxes 324 236 Income tax expense -101 -89 Net income from continuing operations 222 148 Net income from discontinued operations -28 -1 Net income 194 147 Of which Net income- Group share 129 78 Of which Net income from continuing operations - Group share 158 79 Of which Net income from discontinued operations – Group share -28 -1 Of which Net income – Non-Controlling interests (NCI) 65 69 Of which Net income from continuing operations - NCI 65 69 Of which Net income from discontinued operations – NCI - - Adjusted net income, Group share 235 154

First-half 2017 consolidated balance sheet

(in €m) June 30, 2016 June 30, 2017 ASSETS Intangible assets 9,719 9,985 Tangible assets 12,676 13,236 Financial investments 3,018 2,744 Deferred tax assets 880 841 Investment properties 357 332 Consumer credit from financial services companies – long term 2,261 2,477 Other non-current assets - 276 Non-current assets 28,911 29,892 Inventories 6,553 6,863 Trade receivables 2,159 2,636 Consumer credit from financial services companies – short term 3,789 3,655 Tax receivables 1,287 886 Other asssets 1,052 995 Current financial assets 218 252 Cash and cash equivalents 1,688 1,615 Current assets 16,745 16,902 Assets held for sale 43 20 TOTAL 45,700 46,814 LIABILITIES Shareholders equity, Group share 9,745 9,753 Minority interests in consolidated companies 1,549 1,526 Shareholders’ equity 11,294 11,279 Deferred tax liabilities 533 549 Provisions for contingencies 3,188 2,937 Borrowings – long term 7,161 6,586 Bank loans refinancing - long term 2,091 2,574 Non-current liabilities 12,974 12,646 Borrowings – short term 2,112 3,001 Trade payables 12,198 12,784 Bank loans refinancing – short term 3,179 2,774 Tax payables and others 1,188 1,084 Other debts 2,732 3,233 Current liabilities 21,408 22,876 Liabilities related to assets held for sale 23 14 TOTAL 45,700 46,814

First-half 2017 consolidated cash flow statement

(en €m) H1 2016 H1 2017 NET DEBT OPENING -4,546 -4,531 Gross cash flow 1,088 976 Change in working capital -2,052 -2,517 Impact of discontinued activities -11 -1 Cash flow from operations (ex. financial services) -975 -1,541 Capital expenditures (ex Cargo) -968 -904 Capital expenditures (Cargo) -89 -85 Change in net payables to fixed asset suppliers -295 -262 Asset disposals (business related) 69 56 Impact of discontinued activities 0 0 Free cash flow -2,259 -2,736 Free Cash Flow from continuing operations, excluding Cargo and exceptional items -2,106 Financial investments -136 -143 Proceeds from disposals of subsidiaries 7 11 Others 19 -63 Impact of discontinued activities 5 1 Cash Flow after investments -2,363 -2,929 Capital increase 140 90 Dividends paid by parent company -121 0 Dividends paid to non-controlling interests -60 -84 Acquisition/disposal of investments without change of control 0 -57 Treasury shares -4 -2 Cost of net financial debt -181 -191 Others -233 -15 Impact of discontinued activities 0 0 NET DEBT AT CLOSE -7,367 -7,720

Change in shareholders’ equity

(in €m) Total shareholders’ equity Shareholders’ equity Group share Minority interests At June 30, 2016 11,294 9,745 1,549 Total comprehensive income 679 563 116 Dividends (650) (523) (127) Impact of scope changes and others (44) (32) (12) At June 30, 2017 11,279 9,753 1,526

First-half 2017 net income, Group share, adjusted for exceptional items

(in €m) H1 2016 H1 2017 Net income from continuing operations, Group share 158 79 Restatement for non-recurring income and expenses (before tax) 114 150 Restatement for exceptional items in net financial expenses 7 17 Tax impact1 Tax impact of restated items (non-recurring income and expenses and financial expenses) and non-recurring tax items. -48 -84 Restatement on share of income from minorities and companies consolidated by the equity method 4 -6 Adjusted net income, Group share 235 154

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

EXPANSION UNDER BANNERS – Second-quarter 2017

Thousands of sq. m. Dec 31,2016 March 31, 2017 Openings/Store enlargements Acquisitions Closures/ Store reductions Total Q2 2017 change June 30, 2017 France 5,719 5,727 22 2 -7 17 5,744 Europe (ex France) 5,449 5,529 56 55 -66 45 5,574 Latin America 2,335 2,358 9 - -4 5 2,363 Asia 2,758 2,755 2 - -29 -27 2,727 Others2 920 939 27 - -9 18 958 Group 17,181 17,308 116 57 -115 57 17,366

NETWORK UNDER BANNERS – Second-quarter 2017

N° of stores Dec. 31, 2016 March 31, 2017 Openings Acquisitions Closures/ Disposals Transfers Total Q2 2017 change June 30, 2017 Hypermarkets 1,480 1,503 6 8 -9 -1 4 1,507 France 243 246 - - - 1 1 247 Europe (ex France) 439 454 2 8 -4 -2 4 458 Latin America 334 337 1 - - - 1 338 Asia 374 374 - - -4 - -4 370 Others1 Africa, Maghreb, Middle-East and Dominican Republic. 90 92 3 - -1 - 2 94 Supermarkets 3,12 3,194 23 1 -22 -2 0 3,194 France 1,065 1,060 3 1 -1 -4 -1 1,059 Europe (ex France) 1,777 1,758 13 - -20 2 -5 1,753 Latin America 150 149 - - - - - 149 Asia 38 41 2 - - - 2 43 Others2 182 186 5 - -1 - 4 190 Convenience 7,072 7,106 167 - -96 3 74 7,180 France 4,219 4,220 46 - -32 3 17 4,237 Europe (ex France) 2,312 2,337 104 - -63 - 41 2,378 Latin America 468 473 13 - -1 - 12 485 Asia 27 29 3 - - - 3 32 Others2 46 47 1 - - - 1 48 Cash & carry 171 170 1 - - - 1 171 France 143 142 1 - - - 1 143 Europe (ex France) 13 13 - - - - - 13 Asia 2 2 - - - - - 2 Others2 13 13 - - - - - 13 Group 11,935 11,973 197 9 -127 - 79 12,052 France 5,670 5,668 50 1 -33 - 18 5,686 Europe (ex France) 4,541 4,562 119 8 -87 - 40 4,602 Latin America 952 959 14 - -1 - 13 972 Asia 441 446 5 - -4 - 1 447 Others2 331 338 9 - -2 - 7 345

1 Africa, Maghreb, Middle-East and Dominican Republic.

Definitions

Like for like sales growth

Sales generated by stores opened for at least twelve months, excluding temporary store closures, at constant exchange rates.

Organic sales growth

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

Sales under banners

Total sales under banners including sales by franchisees and international partnerships.

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 comprise 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 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.

1 Recurring operating income before amortization and depreciation (including logistics amortization)

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CarrefourInvestor RelationsMathilde Rodié, Anne-Sophie Lanaute and Louis Igonet, Tel : +33 (0)1 41 04 28 83Shareholder relations, Tel : 0 805 902 902 (toll-free in France)Group communication, Tel : +33 (0)1 41 04 26 17

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