t r o p e r t n e m t i i l m m o c e b s n o p s e r d n a y t i v i t c a l a u n n a 2 1 0 2 www.carrefour.com Société Anonyme with capital of €1,773,036,632.50 Head office : 33, avenue Émile Zola – 92100 Boulogne-Billancourt – France 652 014 051 RCS Nanterre 1304091_Couverture_RA_GB.indd 74 1304091_Couverture_RA_GB.indd 74 06/05/13 11:34 06/05/13 11:34 2012 annual activity and responsible commitment report CONTENTS Interview with the Chairman and Chief Executive Offi cer page 2 Get the latest news on Carrefour group’s website www.carrefour.com Discover our other publications our stores Our priorities A multi-local Group Hypermarkets Supermarkets Convenience stores Cash & carry and hypercash stores Multichannel retail Our CSR commitment our products Our priorities Fresh produce Local products Everyday products Non-food products Carrefour’s trade services Our CSR commitment page 6 page 24 our employees Our priorities Develop the passion for retail Promoting employee confi dence Our CSR commitment our performance Our priorities Financial overview Stock market overview CSR overview Consolidated fi nancial statements page 40 page 52 Governance page 69 2012 Registration Document 2012 Carrefour Foundation annual report 2013 Shareholder’s guide (in French version) Conception: Carrefour group Communications Department Creation and production: Translation: Photo credits: Carrefour library, Lionel Barbe, Elisa Desmares, Christophe Gay / Skyzone Le Group, Gilles Leimdorfer / Interlinks Image, Ludovic Marin / REA, Roger Mark, David Pell Multimédia, all rights reserved. Paper: The Carrefour group has made a commitment to responsible management of its paper purchases. The paper used in this report is FSC (Forest Stewardship Council) certifi ed. This certification attests to compliance with a set of internationally recognised forest management principles and criteria. The aim of FSC is to promote environmentally responsible, socially beneficial and economically viable management of the Earth’s forest. Printing: This document was produced by Frazier, FSC and ISO 140001 environmental management systems (EMS) certified. Frazier has received the Imprim’Vert brand, meeting requirements for hazardous waste management, secure storage of hazardous materials and toxic products exclusion. 1304091_Couverture_RA_GB.indd 75 1304091_Couverture_RA_GB.indd 75 06/05/13 11:34 06/05/13 11:34 being a retailer is about working for you every day 1304091_RA_CARREF_1_23_GB.indd 1 1304091_RA_CARREF_1_23_GB.indd 1 06/05/13 11:54 06/05/13 11:54 INTERVIEW “We will remain leaders if we listen to our customers.” Georges Plassat Chairman and Chief Executive Offi cer Has your assessment of Carrefour changed since the last Shareholders’ Meeting? I continue to fi ne-tune it whenever I meet store employees, our partners or – most importantly – our customers. Very oft en it is they who make us see things as they really are – which is why it is so important to listen to them if we want to be a good retailer. 01 I still believe what I have always said: Carrefour is a good business. And for a long time now, it has been a standard… a model. But it has suff ered from having developed in too haphazard a way internationally, without having the resources to underpin its aims. As a result, the investments needed to modern- ise stores have fallen off . And I see this every day when I visit our stores – particularly in France. Although there is still a great deal to be done, Carrefour has solid foundations and undeni- able assets in today’s world. We are particu- larly lucky to have every store format to meet our customers’ current needs and keep pace with changes in consumer trends: hypermar- kets, with their general product off er at the best possible prices; supermarkets, the lead- ing format for food; convenience stores, for service and practicality; cash & carry stores, for professionals, and e-commerce and drive for an off er that is increasingly tailored to our customers’ requirements. Th e company is also brimming with energy, driven by nearly 365,000 employees throughout the world. Th ese men and women who make Carrefour what it is every day are our number 1 asset, ensuring that we remain at the top. “Carrefour is forging ahead and our employees are again enjoying doing their job as retailers.” The year 2012 was marked by a number of international asset sales. Does this herald the beginning of a withdrawal for Carrefour? Are there any other disposals on the horizon? The year 2012 was about strategically refocusing our business in the regions where we have established strong positions. On the one hand, the world’s mature countries, where we have to defend our well-established positions and continue to win over new 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 2 1304091_RA_CARREF_1_23_GB.indd 2 1304091_RA_CARREF_1_23_GB.indd 2 06/05/13 11:54 06/05/13 11:54 INTERVIEW 01 Georges Plassat at the 2012 Shareholders’ Meeting. 02 The hypermarket has to continue to offer a broad range of products at the best possible prices. Carrefour hypermarket shopping arcade in Limbiate (Italy). 03 Carrefour employees are mindful 04 of customer needs. Appliances employee and customer at the Alcobendas Carrefour hypermarket in Madrid (Spain). 05 365,000 employees are at the service of customers and are the company’s main asset. Hypermarket employee in La Chapelle Saint-Luc (France). 02 04 03 05 customers and market share. On the other hand, the world’s emerging countries where we have huge growth potential. Some of our assets, such as those in Colombia where we were behind in market share, were more valuable for others than for us. Th at was why I decided to sell them or – in other cases – restructure some of our partnerships (as we have done in Greece and in Indonesia), entrusting our local partners with the task of developing our Carrefour banners as exclus- ive franchisees. By doing this, we have regained the capacity to invest, especially in our recovery in France and in developing our operations in China and Brazil – two strate- gic platforms for Carrefour. The year 2012 saw Carrefour return to the offensive on prices. Are you going to stay on this course and head off your competitors? In all of the countries in which we operate, we are mindful of the purchasing power of our customers, and we are always striving to sell our products at the best possible prices – but without compromising on quality. We have made progress on this front, particu- larly in France, where our price image has improved considerably. And we are going to continue along this path, continually guar- anteeing low prices for customers, particu- larly for everyday products. Price is a precondition and we have it. Now we have to ensure that people know that. 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 3 1304091_RA_CARREF_1_23_GB.indd 3 1304091_RA_CARREF_1_23_GB.indd 3 06/05/13 11:54 06/05/13 11:54 INTERVIEW More generally, what conclusions have you drawn about this first year? It’s still too early to draw any conclusions. Experience has taught me that you don’t accomplish anything of substance in under three years. Th at’s how long it takes to care- fully get things going again, without acceler- ating too suddenly. Carrefour is forging ahead and our employees are again enjoying doing their their job as retailers. Th at’s the most important thing for me. We are on the right track. How do you see 2013? Th e year 2013 looks set to be diffi cult. Mainly because of the world economic climate and the slowdown in consumption which is now aff ecting all of the world’s regions – including a number of emerging markets. Once again, we are facing headwinds and now, more than ever, we must excel in doing our job every day. We must be close to our customers and listen to them so that we can provide them 01 with local off ers, products and services that are tailored to their needs, in stores in which they can enjoy shopping. We are in a better position to take up this challenge. Our foun- dations are more solid, particularly from a fi nancial perspective. We can now begin the next stage of Carrefour’s recovery and return to growth and higher profi tability. What are your priorities? Firstly, we have to reinvest in our assets, modernise our stores and provide our cus- tomers with a balanced commercial equa- tion with renovated stores, car parks and attractive shopping arcades. We also have to continue our expansion in each of our “We can now begin the next stage of Carrefour’s recovery and return to growth and higher profitability.” 01 Reaching out to customers and being attentive is Carrefour’s philosophy. Georges Plassat at the Guangzhou Xinshi Carrefour hypermarket in Canton (China). 02 Carrefour is going to reinvest 05 in its assets in order to make its stores more pleasant and shopping-orientated. Façade of the Market supermarket in Vannes (France) and the Express Manhattan convenience store in Brussels (Belgium). 03 Customer needs and consumer trends are changing. Carrefour adapts its stores and offers at local level to meet expectations. Customers at the Gran Sasso Carrefour express convenience store in Milan (Italy). 04 The company’s energy comes from its teams, who are passionate about what they do. Checkout employee at the São Caetano do Sul Carrefour hypermarket (Brazil). 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 4 1304091_RA_CARREF_1_23_GB.indd 4 1304091_RA_CARREF_1_23_GB.indd 4 06/05/13 11:54 06/05/13 11:54 INTERVIEW 02 04 formats, and in each of the countries in which we operate. We will also continue decentralising and streamlining, an initia- tive which is starting to bear fruit. Our busi- ness is, by definition, multi-local. This means we have to encourage initiative at local level, giving store managers greater autonomy and more responsibilities. Th ey need to be able to off er product mixes that meet their customers’ needs and be more competitive across their catchment areas. 03 05 You often speak of going back to basics. What exactly does being a retailer mean to you? As a multi-local retailer, we have responsi- bilities to the local community, wherever we operate, with our stores or our suppliers. So I wanted us to commit to a more direct rela- tionship with the various groups with which we deal: our customers, obviously, our employees, our shareholders, our suppliers and, more generally, all of our partners. Carrefour has to maintain close relation- ships with all parties. So we have to go to meet them and listen to them. And, together, work every day on creating value for the benefi t of all. 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 5 Ne t sales €7 6,789 million 9,99 4 stores under G roup banners in 33 countries 9 ,96 4 36 e employe s wor ldwide 1304091_RA_CARREF_1_23_GB.indd 5 1304091_RA_CARREF_1_23_GB.indd 5 06/05/13 11:54 06/05/13 11:54 an offer that reflects what I want so I can make the right choice 1304091_RA_CARREF_1_23_GB.indd 6 1304091_RA_CARREF_1_23_GB.indd 6 06/05/13 11:54 06/05/13 11:54 a pleasant store changes the shopping experience our stores working for you means making the commitment that every day we offer you stores suited to your lifestyle and that we welcome you properly being able to find the product that we are looking for – that’s the most important service 1304091_RA_CARREF_1_23_GB.indd 7 1304091_RA_CARREF_1_23_GB.indd 7 06/05/13 11:54 06/05/13 11:54 OUR STORES our priorities make our stores more welcoming and more responsible Your lifestyle and the ways you shop are changing. As a multiformat, multi- channel and multi-local retailer, Carrefour has all the resources to cater to your different needs – whether you live in an urban or rural environment, are a private or a professional client, or live in France or anywhere else in the world. To better address your needs, we are modernising our stores so that you can shop in total comfort and enjoy the best possible service. 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 8 1304091_RA_CARREF_1_23_GB.indd 8 1304091_RA_CARREF_1_23_GB.indd 8 06/05/13 11:54 06/05/13 11:54 OUR STORES RELAUNCH EXPANSION Relaunching expansion will bring us closer MODERNISE STORES We are continually investing in our stores to you. In mature as well as emerging countries, and modernising them so that you find them we are going to continue to open new stores, more enjoyable. We have a number of initiatives with formats which meet your needs. – facilitating access to stores, providing practical car parks, enhancing the appeal of shopping arcades and making the in-store shopping experience more pleasant – to provide you with the best possible service. CONTINUE TO DEVELOP A MULTICHANNEL OFFER In order to match our offer with your daily needs, we are creating food and non-food e-commerce sites, as well as a range of mobile solutions suited to your lifestyle. We have also stepped up the development of our drives where you can collect the products you paid for online. TURN STORES INTO FRIENDLY SHOPPING ENVIRONMENTS We are simplifying and clarifying our offer so that you can enjoy the best possible experience in our stores, as well as an easier online experience. Store layouts are being redesigned so that your purchase routes are easy and pleasant. STRENGTHEN THE IDENTITY AND ASSERT THE ROLE OF EACH FORMAT Our aim is for you to understand what you We are stepping up training for our employees are going to find in terms of product offer, services so that they can better guide and advise you. and prices as soon as you see the banner: hypermarkets – with a general product offer at the best possible prices; supermarkets – the leading food format; convenience stores – for service and practicality; cash & carry stores – for professionals; and drive and e-commerce – designed to meet your needs. REDUCE THE IMPACT THAT OUR BUSINESS HAS ON THE ENVIRONMENT From the supplier to your home, via the warehouse and the store we are launching more schemes designed to preserve biodiversity and natural resources, as well as tackling climate change. Carrefour employees continually strive to improve the energy efficiency of our stores and logistics operations, reduce waste, promote recycling and raise the awareness of our customers throughout the world in a bid for a more responsible form of retail. 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 9 1304091_RA_CARREF_1_23_GB.indd 9 1304091_RA_CARREF_1_23_GB.indd 9 06/05/13 11:54 06/05/13 11:54 675 stores LATIN AMERICA 272 hypermarkets 168 supermarkets 235 convenience stores OUR STORES A multi-local Group 9,994 No. 1 No. 2 33 in the world in Europe stores countries Stores as of December 31, 2012 (including franchisees and partners) Hypermarkets Supermarkets Convenience stores Cash & carry stores France TOTAL FRANCE Belgium Italy Poland Romania Spain Turkey Other TOTAL EUROPE (excluding France) Argentina Brazil TOTAL LATIN AMERICA China India Taiwan Other TOTAL ASIA 3,342 3,342 232 720 297 16 105 63 1,433 235 235 220 220 46 45 84 24 173 28 124 524 76 196 272 218 61 71 350 934 934 436 439 161 68 114 215 903 2,336 127 41 168 3 13 16 139 139 14 7 21 4 4 TOTAL 4,635 4,635 714 1,218 542 108 392 243 1,097 4,314 438 237 675 218 4 64 84 370 TOTAL GROUP 1,366 3,454 5,010 164 9,994 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 10 1304091_RA_CARREF_1_23_GB.indd 10 1304091_RA_CARREF_1_23_GB.indd 10 06/05/13 11:54 06/05/13 11:54 4,635 stores FRANCE 220 hypermarkets 934 supermarkets 3 ,342 convenience stores 139 cash & carry stores OUR STORES 4,314 stores EUROPE (EXCL. FRANCE) 524 hypermarkets 2 ,336 supermarkets 1,433 convenience stores 21 cash & carry stores 370 stores ASIA 350 hypermarkets 16 supermarkets 4 cash & carry stores Integrated countries Franchised countries 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 11 1304091_RA_CARREF_1_23_GB.indd 11 1304091_RA_CARREF_1_23_GB.indd 11 06/05/13 11:54 06/05/13 11:54 OUR STORES HYPERMARKETS A broad product offer and low prices every day makes the hypermarket the ideal format for major shopping trips A large sales area, a wide range of food and non-food products, low prices and targeted special offers – the hypermarket is the format for major shopping trips. WINNING ON PRICE In 2012, Carrefour set out to maximise its cus- tomers’ purchasing power. In each of its 1,366 hypermarkets, Carrefour launched an offensive designed to offer the most competitive prices on the market and maintain an unbeat- able price image. The offensive included the “Lowest Price Guarantee” campaign in France, “Price, service, responsibility” Carrefour is working for you – Commitments to offer you the best possible prices, including the “Lowest Price Guarantee” campaign in France and prices lowered on 4,000 daily food products in Spain. – Tailored services to meet your requirements and a wide offer available in sales areas ranging from 2,400 sq. m to 23,000 sq. m. – Initiatives to protect the environment with more double-glazed refrigeration units in the frozen food and fresh product aisles in order to save energy. and lower prices on 4,000 daily food products in Spain. The initiatives were underpinned by loyalty programmes designed to increase household purchasing power. They included instant dis- counts for bearers of the Carrefour Rodzinka (family) card in Poland, and Loyalty e-Cheques for use in French stores, as well as on carrefourdrive.fr. In Spain, alongside the Carrefour Club, which has 7 million active cus- tomers who can collect “savings cheques”, Carrefour launched two initiatives for those most affected by the economic crisis. The “large family” and “over 65-year-old” cards give cus- tomers VAT discounts on more than 4,000 fresh products. This represents savings of 4% to 8%, depending on the product. Throughout the world, Carrefour’s hypermar- ket customers can enjoy attractive sales cam- paigns and special offers: shopping refunds in Turkey, special “knockdown prices” days in Brazil, major sales events including the opportu- nity to win 4 million pesos to celebrate Carrefour’s 30th anniversary in Argentina, and in Taiwan, a partnership with Angry Birds, one of the most popular video games in the world. 01 STORES WHERE SHOPPING IS EASIER With sales areas of between 2,400 sq. m and 23,000 sq. m, Carrefour’s hypermarkets feature an extremely wide range of both food and non- food products. Guiding its customers through the aisles of their hypermarkets so that they can easily find the products they are looking for is one of the services that Carrefour is continually striving to improve. In all of the countries where the Group operates, its employees are striving to make stores more pleasant, friendly and c onducive to shopping, developing solutions that are increasingly tailored to meet customer needs, starting with a drive to simplify the pr oduct offer. Carrefour is also trying to reduce the amount of time that customers have to spend at the checkout counter. 317 employees on average in a French hypermarket 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 12 1304091_RA_CARREF_1_23_GB.indd 12 1304091_RA_CARREF_1_23_GB.indd 12 06/05/13 11:54 06/05/13 11:54 OUR STORES 01 A general offer at the best possible price in the Group’s hypermarkets. Central aisle of the La Chapelle Saint-Luc hypermarket (France). 02 Caring employees and innovative services designed to make shopping easier. Employee at the La Plata Carrefour hypermarket in Buenos Aires (Argentina). 03 Attractive sales campaigns and special offers livening up the aisles. Customers at the Tien Mou Carrefour hypermarket in Taipei (Taiwan). 04 Innovative services designed to help you save time, such as the Selfscan system, for example. Customer at the Bomerée hypermarket (Belgium). 03 TARGETED GROWTH In all of the countries in which the Group oper- ates, Carrefour is continuing with the expansion of its hypermarket format: it opened 53 new stores in 2012. In France, Carrefour is relaunch- ing its expansion programme, with the opening of a 4,358 sq. m urban store in Lyon in the new Confluence district, and a 7,000 sq. m suburban store in La Chapelle Saint-Luc, in the Aube département. The store, which also features a drive, is right in the centre of the new Escapade shopping centre, built by Carrefour Property as part of the Grand Troyes urban renovation pro- ject. In Europe, Carrefour has opened two new hypermarkets – one in Spain in Santiago de Compostela, and the other in Bodrum in Turkey. In growth markets, the Carrefour hypermarket format has proved popular with consumers because it is tailored to their lifestyles and local consumer habits. The Group is using it as a development model. In 2012, it opened 18 new hypermarkets in China, bringing the total number of stores to 218 in 67 towns and cities throughout the country. A new 5,400 sq. m store was also opened in Taiwan, together with a smaller 3,250 sq. m hypermarket in Glew in Argentina. Carrefour is also increasing the numbers of franchise stores in Iraq, Georgia and the Former Yugoslav Republic of Macedonia, and is continuing with its expansion pro- grammes in the Middle East, Bulgaria and French overseas territories. 13.5 million active loyalty cardholders in France 02 04 In Italy and France, for example, it is experi- menting with the “single queue” system, where customers queue in a single line leading to 10 to 15 checkouts using a screen to guide them to the first available checkout. A WIDE, CUSTOMISED PRODUCT OFFER Hypermarkets have a product offer that is tai- lored to the profile and purchasing power of their clientele, adjusted depending on local competition. For example, in five of its French stores, Carrefour has been experimenting with a new “budget shopping” aisle, in which a selec- tion of 300 to 600 daily products are on sale at the lowest prices on the market. This way, cus- tomers can choose from a wide selection of major-brand and own-brand products, as well as a selection of regional products. In addition to grocery products, Carrefour hypermarkets also showcase self-service or cut to order fresh products with counters managed by food profe ssionals. Customers also have a wide choice of non-food products, including house- hold appliances, multimedia, textiles, DIY, decoration and furniture. 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 13 1304091_RA_CARREF_1_23_GB.indd 13 1304091_RA_CARREF_1_23_GB.indd 13 06/05/13 11:54 06/05/13 11:54 OUR STORES SUPERMARKETS The leading food format, combining convenience, fresh and daily products Stalls that are brimming with fresh produce, a selection of non-food top-up products, low prices throughout the store… the Group’s supermarkets have become a standard in con- venience food retail. A SUSTAINED EXPANSION In 2012, 83 new supermarkets were opened, bringing the total number of stores in this for- mat to 3,454. In France, the Group opened 3 supermarkets on the mainland and another 3 with its franchise partners in Guadeloupe, Martinique and a first in Guyana. Supermarket customers have benefited from the increase in the number of drives. As of the end of 2012, more than 120 stores now include drives, of which around 40 are franchised stores. Supermarket banners are also expanding in Europe: 17 new stores were opened in Italy, 4 in Spain and 4 in Belgium. In Romania, Carrefour opened 24 new supermarkets in 2012, bringing the total number of stores in this country to 68. The people of Flanders, in Belgium, will soon be able to enjoy ten or so new supermarkets since Carrefour took over the old O’Cool stores at the end of 2012. The supermarket format is also expanding across Asia and Latin America. Its acquisition of the Eki store chain has enabled Carrefour to shore up its position as the leading retailer in Argentina – it has opened 19 new supermarkets, mainly located in the capital and surrounding areas. In Brazil, the Group now has 41 stores under the Carrefour bairro banner, 01 selling products that are adapted to meet local people’s needs, following the example of other countries in which the Group operates. Carrefour franchise partners are also continu- ing to grow, with new supermarkets being opened in North Africa, the Balkans and the Gulf states. A FRIENDLY MERCHANDISING CONCEPT Fresh produce presented as it would be at a tra- ditional market, a diversified range of food prod- ucts that encourages people to discover them and a product staging with a decidedly merchan- dising slant to it: this is what Market – Carrefour’s new supermarket concept – is all about. With full-scale tests having been carried out in four stores in France, the Market banner seeks to establish stores locally and foster close ties with customers. As soon as customers enter the store, the managers present themselves. And in the fresh produce aisles, a sign tells them who is responsible for them, as well as providing details of current special offers and a selection of “prod- ucts chosen by you”. Throughout the store, the atmosphere is friendly and features, for example, opportunities to taste products. And merchan- dising innovations beckon, simplifying the shopping experience. New products are high- lighted by coloured signs and a “for every purse” sign displays the various price levels within a given category. Local products are very popular with as many as 400 regional items showcased on the shelves. As far as the services on offer are concerned, customers in a hurry can select the Scan’phone market option. This involves scan- ning their purchases with their mobile phone and then paying at an express checkout. Other customers can use the interactive terminals in the store to indicate what they want, manage their loyalty programme or find out information about the various services available. 3,454 supermarkets throughout the world 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 14 1304091_RA_CARREF_1_23_GB.indd 14 1304091_RA_CARREF_1_23_GB.indd 14 06/05/13 11:54 06/05/13 11:54 OUR STORES 05 02 03 06 01 Fresh products are central to 05 the Carrefour supermarket concept. Employees at the Carrefour market stores in Tongeren (Belgium) and Gurme (Turkey). 02 Supermarket customers can get 03 a selection of daily products at the best possible prices. Customers at the Santo Amaro Carrefour bairro in São Paulo (Brazil) and the Ortiz Carrefour market in Buenos Aires (Argentina). 04 “Lowest Price Guarantee” campaign in French supermarkets in 2012. 06 With sales areas ranging from 1,000 sq. m to 4,000 sq. m in towns or more rural areas, the Group’s supermarkets are the leading food format. Customer at the Caramfil Carrefour market in Bucharest (Romania). 07 Self-service or cut-to-order fresh products are among the strong points of the Group’s supermarkets. Employee at the fish counter of the Piazza Clotilde Carrefour market in Milan (Italy). 04 07 LOW PRICES AND FRESHNESS GUARANTEED In 2012, Carrefour launched its price offensive in France. This involved the “Lowest Price Guarantee” campaign in supermarkets, which got under way in April and which targets a different fruit, vegetable, fresh/cured meat prod- uct, fish and cheese every day. Carrefour prom- ises to refund customers twice the difference if they find the same products for a lower price anywhere within a 15-kilometre radius of their store. And because freshness is a key criterion in getting customers to choose Carrefour and 50 employees on average in a French supermarket remain loyal to the banner, its supermarkets also make commitments through the “Freshness Guarantee” campaign. Meat and fish, breads, traditional pastries and croissants, cured meats and cut-to-order cheese, fruit and vegetables from the market area… all of these fresh products are exchanged and refunded for Carrefour card holders within 72 hours if they are not completely satisfied with their freshness. In all of the countries in which the Group oper- ates, supermarket customers can enjoy a range of food products adapted to their needs at the lowest possible prices, as well as attractive spe- cial offers and loyalty programmes. In Italy, for example, Spesamica card holders enjoyed a range of special offers in 2012 granting them vouchers for a number of seasonal products, Easter chocolates and ice creams and sorbets in the summer. 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 15 1304091_RA_CARREF_1_23_GB.indd 15 1304091_RA_CARREF_1_23_GB.indd 15 06/05/13 11:54 06/05/13 11:54 OUR STORES 01 CONVENIENCE STORES Practical and close to home, it is the store you shop at every day With long opening hours, a range of products designed to meet everybody’s needs and a mul- titude of services, the Group’s convenience stores can completely cater to today’s and tomorrow’s lifestyles. The clue is in the name of the banner: Express is for daily purchases, City features a range of ready-to-eat products aimed at urban dwellers in a hurry, Contact is in rural areas and stocks everything you need for the family, while Montagne makes shopping in ski resorts simpler. What these banners have in common is that they are franchises and are help- ing Carrefour to achieve its aim: establish itself as the leading convenience retailer. 5,010 convenience stores throughout the world 02 A COMPLETELY SERVICE-ORIENTED CONCEPT Shop close to home or on the way back from work at a store with opening hours that fit your lifestyle – that’s what people want from con- venience stores. And the rest is all about services – services that are specially tailored to meet the local needs of the customers, such as “basket checkouts” to speed up payment, home delivery and ordering online. It was with all these requirements in mind that Carrefour express first set up a store in a service station in Spain and that Carrefour city opened its doors in the new Saint-Lazare station shopping arcade in Paris. Open from 7 am to 11 pm and designed to cater to the needs of large numbers of pas- serbys and local residents, customers can use the “Mon panier Carrefour city” mobile app to order their purchases and then pick them up two hours later from a special checkout. LOCAL RETAILERS To become the benchmark in local retailing, customer relations are central to convenience store strategy. So Carrefour is continually recruiting and training franchise candidates 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 16 1304091_RA_CARREF_1_23_GB.indd 16 1304091_RA_CARREF_1_23_GB.indd 16 06/05/13 11:54 06/05/13 11:54 OUR STORES 01 Façade of the Express Manhattan convenience store in Brussels (Belgium). 02 Employees at the Express store 06 in Marseille (France) and the Sasso Carrefour express store in Milan (Italy). 03 With long opening hours, a range 04 of products designed to meet 05 everybody’s needs and a multitude of services, the Group’s convenience stores cater to today’s and tomorrow’s lifestyles. Customers at the C/ Mellado Carrefour express store in Madrid (Spain), the Ciudad de la Paz store in Belgrano (Argentina) and the Gwiaz´dzista store (Poland). 04 06 DETERMINED GROWTH Convenience is a growth format that is attractive for retailers and which does not require large investments for Carrefour. It is enjoying consid- erable growth throughout the world and is very popular among customers. In 2012, 559 new convenience stores were opened, including 192 in France, where the Group has just opened its 1,000th store under Carrefour banners, bringing the total number of stores in the country to 3,342. Carrefour Poland is investing heavily in convenience and franchise stores: it doubled its total number of stores in 2012 by opening 149 new retail outlets. Other countries in Europe have also enjoyed healthy growth with 66 new franchised stores opening in Spain, 60 new stores in Italy and 18 in Belgium. In Argentina, Carrefour has confirmed its position as the lead- ing retailer with 166 new convenience stores – including the 110 stores bought from Eki – bringing the total number to 235. “Proximity and accessibility” Carrefour is working for you – Even closer to you: convenience stores are opening in service stations (Spain, Poland and Italy) and railway stations (France). – Even more accessible: opening hours of convenience stores have been extended to cater for all lifestyles. 03 05 with convincing arguments: strong banners and more than fifty years of retail experience. For example, the baker from Poey-de-Lescar, a village in the Pyrénées-Atlantiques départe- ment (France) wanted to meet the needs of people living locally and so set up a new store combining a Carrefour contact convenience store and his own bakery. Doing this gave a boost to the local sales dynamic which went beyond the confines of the village. These future retailers learn the trade in training stores or with employees. They learn all about retail, sourcing, dealing with fresh products, bread, as well as management and the economic aspects of the company. Carrefour provides them with support in choosing products that are appropriate for their catchment area and in arranging the shelves. They can take advantage of the Group’s purchasing power and are given advice about setting sales prices that are adapted to local competition. Another way to run a convenience store is through the rental management scheme. Internal or external candidates can sign up without any financial contribution: they follow a development pro- gramme, then manage a store before eventually taking ownership. 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 17 1304091_RA_CARREF_1_23_GB.indd 17 1304091_RA_CARREF_1_23_GB.indd 17 06/05/13 11:54 06/05/13 11:54 OUR STORES CASH & CARRY STORES Banners for catering and food business professionals The Group’s cash & carry banners have a range of food and non-food products at wholesale prices, together with bespoke services designed to support and make the work of caterers and convenience food businesses easier. Major- brand products can be found alongside own- brand products, fresh products and more specific products for use in catering (assembly and hygiene products, crockery, etc.), as well as products for resale to grocers. A NETWORK FOR PROFESSIONAL CUSTOMERS In 2012, two new Promocash stores and 4 drives were opened, bringing the total number of stores to 139 and 12 drives, confirming Promocash as the largest franchised network of cash & carry stores with a delivery service in mainland France. As far as growth is concerned, Carrefour is using local franchisees, for example to open the first Promocash in Nouméa, in New Caledonia. Outside France, cash & carry stores in Italy trade under the Docks Market banner, which will continue to grow in 2013 as recently purchased stores are transformed. In India, Carrefour has continued with its expansion programme, opening two new Carrefour Wholesale Cash & Carry stores. 164 cash & carry stores throughout the world A FULLY CUSTOMISED RELATIONSHIP The Group’s cash & carry stores have a range of high-quality products at the lowest possible prices for professional customers, together with innovative services tailored to their require- ments. The stores’ opening times have been adapted to fit in with the lifestyles of profession- als of the food business. The Docks food order and pick-up point right in the centre of the Genova fruit and vegetable market, for example, is open from 4am to 11am, Monday to Saturday. Customers can take advantage of different sup- ply modes, as they can at Promocash, with in- store purchases, delivery or drive pick-up, together with a range of customer services such as menu and wine list printing for restaurants. In all of the Group’s banners, professional cus- tomers can take advantage of low prices and special offers to increase profitability in the long term. The stores also feature a range of custom- ised campaigns designed to further develop customer loyalty, such as the “Carrefour Max” programme in India, which enables customer to collect reductions for the following month or the “Club Promocash” in France, which has highly targeted sales proposals and rewards each member’s volume of business. 01 Promocash has a range of products and services specially tailored for professionals and has nearly 300,000 customers in France, including 62% in the restaurant industry. Promocash store in Colombelles (France). 02 Carrefour is continuing to develop its hypercash banner in Brazil with the opening of 10 new Atacadão stores in 2012. Itaquera store (Brazil). 03 In Argentina, more than 30,000 customers visit the Carrefour Maxi banner each month. Burzaco store (Argentina). 04 In 2012, the Group opened up two new Carrefour Wholesale Cash & Carry stores in India. Customers at the Jaipur store (India). 05 The Atacadão banner celebrated its 50th anniversary in 2012. Employee at the Praira Grande store in São Paulo (Brazil). 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 18 1304091_RA_CARREF_1_23_GB.indd 18 1304091_RA_CARREF_1_23_GB.indd 18 06/05/13 11:54 06/05/13 11:54 OUR STORES 01 02 04 HYPERCASH STORES The advantages of wholesale and hypermarkets for everyone 03 05 Products p resented on pallets and sold in large quantities at wholesale prices at sites that are open to both professional customers and indi- viduals: that is the recipe behind the hypercash store model that Carrefour deploys in some of its markets. ATACADÃO CELEBRATES 50 YEARS OF SUCCESS IN BRAZIL Atacadão’s history began in 1962 in Maringá, in southern Brazil, with the door-to-door selling of sardines and cheese to companies. In the early 1970s, it opened a branch in São Paulo. Ten years later, it opened its first self-service and wholesale stores. It started to grow rapidly in the 2000s, selling Atacadão-branded prod- ucts throughout the country and opening 23 stores. In 2007, the Carrefour group acquired Atacadão and embarked on a sustained development of the network. It opened new stores and converted some Group hypermar- kets, reaching 70 stores by the end of 2010. 10 new stores were then opened in 2012, bring- ing the total number to 93. With more than 615,000 sq. m of sales area throughout the country featuring 10,000 food and non-food items, they employ more than 26,000 people. Atacadão’s growth strategy together with its growing sales and Brazil’s encouraging eco- nomic forecasts make it one of the country’s most promising retail banners. A FAST-GROWING FORMAT The Atacadão hypercash store concept was established in Morocco in 2012. The Label’Vie group, Carrefour’s franchised partner in the country, opened 4 stores for individuals and professional customers in Casablanca, Fes, Tangiers and Oujda. The new stores aim to meet local peoples’ need for high-quality products at the best possible prices. In Argentina – where the Group opened 2 Carrefour Maxi stores in 2011 – the sales dynamic continues, and more than 30,000 customers shop at Carrefour every month. In Italy, the GrossIper banner has con- tinued to expand, with the opening of a new store on the outskirts of Milan. 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 19 1304091_RA_CARREF_1_23_GB.indd 19 1304091_RA_CARREF_1_23_GB.indd 19 06/05/13 11:54 06/05/13 11:54 OUR STORES MULTICHANNEL RETAIL In-store and online shopping: Carrefour in the age of mobility Some customers want the enjoyment of pur- chasing their fresh products in-store; others prefer to shop online whenever they like or order remotely and then collect their shopping from a drive. Carrefour can provide both in-store and e-commerce solutions, providing its customers with the best possible complementary service. A NEW ONLINE EXPERIENCE Carrefour is increasing its shopping options to satisfy customers looking for practical solutions and bargains. In France, the new version of car- refour.fr, launched in 2012, now makes life easier for online shoppers, providing fast access to a number of different e-commerce sites. Carrefour’s website really is a store in every sense of the word, attracting some 5.4 million visitors every month. In the online food shop, Ooshop.com, which has been operating since 1999, customers can choose from a selection of 5.4 million unique visitors on average to the French site each month 01 PROVIDING MORE DRIVES Buying your products online at the same prices as in stores and then picking them up in less than five minutes at a dedicated point in your hypermarket or supermarket in France – that’s a Carrefour drive. 15%* of all French households have shopped at least once in a drive. Carrefour is therefore rolling them out faster, with 175 new ones this year, bringing the total number of pick-up points to more than 200. In mature markets and where there is customer demand, drives are also being opened, as is the case in Belgium and Spain. * Source: Kantar Worldpanel. (Data over a 12 month period: Nov. 2011 – Nov. 2012) more than 8,000 products and access special offers and their own personal area in a single click. Users are guided by product sheets and purchase tips help them make the most of their household budget. Carrefour.fr also has a very wide range of non-food products, supplement- ing the products available in its stores in the TV, video, telephony, high-tech and household appliance departments. In Spain, Carrefour’s food e-commerce site covers around 80% of the country and offers nearly 14,000 products – as many as its hypermarkets. Spain’s non-food website is visited by more than 3 million people every month and sells 9,000 products – mainly household appliances, photography, cinema, sound and multimedia items. And in order to win over Turkey’s 35 million Internet users, Carrefour has just launched a non-food e-com- merce platform. 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 20 1304091_RA_CARREF_1_23_GB.indd 20 1304091_RA_CARREF_1_23_GB.indd 20 06/05/13 11:54 06/05/13 11:54 OUR STORES 02 04 05 THE MOBILE REVOLUTION Mobility-related technological developments are dramatically altering consumer habits. Carrefour’s latest mobile innovations are evi- dence of this change and shape what shopping will be like in the future. The “mes courses Carrefour” application was downloaded 260,000 times in 2012. Customers can use it to do their shopping whenever they want from their mobile phone, enjoying a range of features which make their shopping experience easier, such as the abil- ity to navigate the aisles and view their most recent purchases. Customers can then choose to have their shopping delivered or pick it up at the drive of their choice. Two temporary virtual stores set up at the Lyon Part-Dieu and Paris- Nord stations in France provided travellers with an opportunity to use online shopping with Carrefour. The Group has also seized the oppor- tunity provided by Google Indoor Maps in France, offering its customers a service that reflects their new consumer habits: they can now view a plan of their shop and see the aisles using a smart phone or tablet computer. The application was tested in 10 pilot hypermarkets. In order to best cater to the mobile lifestyle of its customers, the new Carrefour city which opened in 2012 at the Saint-Lazare station in Paris has launched a free application. Customers can use it to shop directly from their mobiles and pick up their purchases two hours later from a dedicated checkout. 77% of all French people say that they could not give up shopping in stores Source: IFOP poll – BNP Paribas workshop – November 2012 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 21 03 01 Carrefour is opening more drives in France. Employee at the La Beaujoire Carrefour drive in Nantes (France). 02 The Group’s e-commerce sites meet the needs of customers looking for practical solutions and bargains – as is the case in Spain with carrefour.es, an online store open 24 hours a day. 03 Customers at the new Carrefour city store at the Saint-Lazare station in Paris (France) can now shop from their mobile phone and then pick their purchases up in the store. 04 Carrefour drive customers in France can choose from more than 8,000 products on sale at the same prices as in-store. 05 As a way of showcasing its services, in 2012, Carrefour installed virtual stores in two railway stations in France. They were presented as luminous cubes displaying 300 of the most frequently purchased items by Carrefour’s online customers. A COMPLEMENTARY MULTICHANNEL OFFER Carrefour now also offers its customers a range of new services in its stores. Information terminals, for example, have been installed in the aisles, supplementing the expertise of employees. Because there are more and more so-called “cross-channel” customers who make purchases both in stores and online, Carrefour’s e-commerce sites are bolstering and widening their product offer. In Spain and Turkey, high-tech products and household appliances in particular appeal to online users. In 2012, Carrefour put more than 20,000 new products online in France. These included new categories, such as game and software downloads, subscriptions to newspapers or magazines and games and toys for Christmas. 1304091_RA_CARREF_1_23_GB.indd 21 1304091_RA_CARREF_1_23_GB.indd 21 06/05/13 11:54 06/05/13 11:54 OUR STORES Carrefour is committed to reducing the environmental impact of its retail business. The Group sets great store by implementing initiatives to tackle climate change and preserve the planet’s natural resources. It is striving to develop stores that use less energy and water, generate less waste and emit less CO2 and which have less of an impact on the environment all along the logistics chain. The Group’s aims are clear: reduce its energy consumption per square metre of sales area by 30% by 2020 (compared with 2004), reduce its greenhouse gas emissions by 40% by 2020 (compared with 2009 in France, Belgium, Spain and Italy), eliminate HFCs from new refrigeration equipment starting in 2015, reduce store water consumption and encourage the recycling of store waste. To do so, Carrefour is designing energy-saving stores, experimenting with new technologies, sharing examples of best practice with other market players, raising awareness among its staff and trying to get its customers to consume more responsibly in a way that is beneficial to all. SEE PAGE 60 FOR THE CSR INDICATORS AND MORE INFORMATION AT www.carrefour.com A FEW INITIATIVES CARRIED OUT IN 2012 INNOVATIONS ON THE LOGISTICS CHAIN In order to minimise its impact on the environ- ment and reduce its carbon footprint, Carrefour is working on all fronts to optimise its transport and logistics activities. Its initiatives include sharing warehouses to reduce the distances t ravelled and optimising the ways in which lor- ries are filled by using lorries with girders and introducing backhauling. The Group is also carrying on with its efforts to increase the use of alterna tive modes of transport, such as mul- timodal transport combining rail/road or river/ road in countries where the infrastructure allows it. Innovative engine and fuel solutions are also being tested for a more eco-friendly fleet. Carrefour is testing its first lorries running on biomethane fuel produced using waste from its hypermarkets in France. Biomethane fuel is made by recycling store waste (fruit and veget- ables or pastries, for example, that are no longer fit for consumption), and is a completely de- carbonated version of NGV (natural gas for vehicles), as well as being completely renewable. Three lorries are running on it, making carbon neutral deliveries to around fifteen Carrefour hypermarkets in northern France – a concrete example of energy self-sufficiency for deliveries to stores. MORE SUSTAINABLE STORES In a bid to make its stores more carbon neutral, Carrefour is using the very latest technologies to improve the energy ef ficiency o f i ts existing ones and those that it is renovating. It is doing this by investing around €30 million per year over several years and incorporating strict envi- ronmental criteria into the construction and renovation of its hypermarkets a nd supermar- kets. In France, for example, the companies that work with Carrefour Property (the Group’s property management company) sign up to the “Green Construction” charter, which limits the extent to which building site work can impact the environment. As well as the works phase, even the way in which sites are designed 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 22 1304091_RA_CARREF_1_23_GB.indd 22 1304091_RA_CARREF_1_23_GB.indd 22 06/05/13 11:54 06/05/13 11:54 OUR STORES CARREFOUR TURKEY SWITCHES TO NATURAL FLUID The second biggest source of CO2 emissions after electricity is leakage of refrigeration fl uids from food cold storage units and this is being studied as part of a major initiative which aims to tackle these emissions at source. The Kurtköy Millenium Carrefour Expres SA in Turkey, for example, has introduced a new refrigeration system which has already been tested in a number of the Group’s other stores. It uses a natural fluid – carbon dioxide – in order to reduce its environmental footprint and so save money on energy. The new-generation refrigeration equipment can reduce energy consumption by 10% to 20% while using less fluids, reducing leakage by 75%. 01 Closed refrigeration units is one of the Group’s initiatives for reducing energy consumption in its stores. Manhattan Express store in Brussels (Belgium). integrates environmental considerations. The new L’Escapade shopping centre, for example, in La Chapelle Saint-Luc, near Troyes (France) has been designed in accordance with the HEQ (High Environmental Quality) and BREEAM* standards. The site is a sound example of the Group’s commitment to protecting the environ- ment. Opened in November 2012, it includes a Carrefour hypermarket that is the perfect embodiment of the retailer’s sustainability policy. The store’s LED lighting and its closed, double-glazed refrigeration units in the frozen food and fresh product aisles are among some of the many measures that help save an esti- mated 107,000 kWh per year – energy savings of around 34% compared with a similar store. Using methanisation to manage the store’s organic waste, maintaining biodiversity with nearly 25,000 plants at the site and recovering rainwater for use in cleaning and watering are among the commitments that are consistent with the “nature approach” that the L’Escapade shopping centre offers its customers. * International reference for the environmental quality of buildings. 30% amount by which the Group aims to cut energy consumption per sq. m of sales area by 2020 (compared with 2004) CUSTOMER AWARENESS-RAISING The Group spends more than €0.5 billion on energy for its stores every year. With energy prices constantly increasing and customers more mindful of energy issues, Carrefour has decided to actively invest in developing ways of reducing its energy consumption. The Group is continuing with its efforts to reach the target it has set itself (reducing energy consumption by 30% for every sq.m of sales area by 2020 com- pared with 2004). This is one of the cornerstones of Carrefour’s drive to tackle wastage. At the same time, Carrefour is helping its employees and customers to reduce their energy consump- tion and spending. In January 2012, for exam- ple, the Group’s hypermarkets in France took part in the “let’s save energy” campaign, the aim being to tell customers how to save money and protect the environment at the same time. The stores showcased a range of energy-saving prod- ucts and included information so that people can recognise them and understand the mean- ing of their labels: the Energy label, the Energy Star label and the European ecolabel which guarantees that a product’s quality, usage and life-cycle (from the extraction of raw materials to recycling) have all been taken into account. 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 23 1304091_RA_CARREF_1_23_GB.indd 23 1304091_RA_CARREF_1_23_GB.indd 23 06/05/13 11:54 06/05/13 11:54 major brands at low prices 1304091_RA_CARREF_24-51_GB.indd 24 1304091_RA_CARREF_24-51_GB.indd 24 06/05/13 12:19 06/05/13 12:19 products from my region in my store our products working for you means providing you with a wide range of products designed to cater to all your desires at the best possible price and in complete confidence low prices, more confidence 1304091_RA_CARREF_24-51_GB.indd 25 1304091_RA_CARREF_24-51_GB.indd 25 06/05/13 12:19 06/05/13 12:19 OUR PRODUCTS our priorities offer a wide selection of high-quality products at the best prices Products are our core busi- ness. Our conception of what we offer is based on unchanging principles: a wide selection, the lowest prices and irreproachable quality. To cater to your needs throughout the world, we refine our offer to provide you with a variety of fresh produce, products from local suppliers, major-brand products, essential non-food items, the best innovations and day-to-day retail services. 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 26 1304091_RA_CARREF_24-51_GB.indd 26 1304091_RA_CARREF_24-51_GB.indd 26 06/05/13 12:19 06/05/13 12:19 OUR PRODUCTS ENSURE THE QUALITY OF OUR PRODUCTS Quality is a requirement and the guarantee for gaining your trust in the long term. It is in our genes. Our products all meet strict and intangible requirements in terms of quality and safety. We need to re-emphasise this quality-focused culture and be the best – particularly in relation to fresh products. We can do this by bolstering our partnerships with producers-breeders, who are unique in terms of their ability to guarantee quality on the market. And for all of the products we sell, we have to maximise value for money – to the benefit of all. INCREASE THE CLARITY OF OUR PRODUCT OFFER We must ensure that our offer is of high quality and easy to understand, particularly in terms of pricing. Efficiency always has to take precedence over abundance. We must cater to everybody’s needs by giving priority to the most popular major-brand products sold at market prices. Carrefour-branded products supplement those of major brands, and are focused around a selection of simple, high-quality products. We are widening our range of regional products. And to make the shopping experience easier, we are also PROMOTE RESPONSIBLE SOURCING As the world’s second largest retailer, we are aware of our responsibility as a major purchaser. We are working on our sourcing processes throughout the world, with the aim of protecting biodiversity and natural resources, as well as ensuring the economic sustainability of our business. We are implementing concrete initiatives in order to improve traceability across our supply sources. We are also supporting our partners and suppliers, helping them to adopt a socially responsible approach, encouraging them in particular to continuously improve improving the way in which products are presented working conditions. through clear merchandising initiatives. GUARANTEE THE BEST PRICES EVERY DAY Offering you products at a fair price is an imperative. Our price policy is based on selling you products at low prices every day, together with more targeted special offers designed to increase your purchasing power. Every day, we work to make sure that you get the best prices, without compromising on quality. ENCOURAGE THE DEVELOPMENT OF LOCAL PRODUCTS The taste of regional products and being part of the local community are values we stand for. We therefore allow our store managers and their teams to tailor their product offer to suit their catchment area and your expectations. We establish solid links with local suppliers and encourage a direct relationship between you and producers. Our stores form an integral part of the communities in all the countries and regions in which the Group operates. 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 27 1304091_RA_CARREF_24-51_GB.indd 27 1304091_RA_CARREF_24-51_GB.indd 27 06/05/13 12:19 06/05/13 12:19 OUR PRODUCTS 01 FRESH PRODUCE The excellence of fresh produce Fresh produce is key to developing the attrac- tiveness of our stores and as such it requires all the attention and expertise of our employees. In all of its store formats, Carrefour offers a wide selection of high-quality fresh produce in areas that have been specially designed to make shop- ping enjoyable: large stalls, easy-to-reach prod- ucts and regional products – all designed to please our customers and support local eco- nomic development. 02 A PASSION FOR FRESH PRODUCE This passion starts long before the products arrive in store and involves the whole supply chain, ensuring that customers can get fresh produce of the finest quality throughout the day. In the warehouses, freshness is monitored and checks are carried out to ensure that specifica- tions are complied with. The logistics teams ensure that products are carefully and properly loaded onto pallets and storage temperatures are monitored right up until dispatch. Once they arrive in store, freshness and quality checks are carried out before they go on display. Two rules must be complied with: shelves must not be overstocked but restocked often as products lose their freshness faster at room temperature, and they must be handled with care. At the fish or butcher’s counter – as is the case with all fresh product areas – it is often the first impression that counts. In order to attract customers and encourage them to make purchases, products must be fresh, of the highest quality and impec- cably presented. The shelves are continuously optimised to best stage the products and make people want to buy them. The store’s teams con- stantly monitor the stalls and react instantly whenever a customer has a query. The skills and expertise of our employees, bakers, butchers, pastry makers and fishmongers all play their part in strengthening Carrefour’s commitment to quality. CONSTANT QUALITY AND FRESHNESS Sabine Forget – Fish counter manager at the Bomerée Carrefour hypermarket (Belgium) “Freshly-caught fish are delivered on a daily basis – except for Mondays, because people do not fi sh on Sundays. Freshness is essential and a number of checks are carried out to guarantee it. We can therefore be sure that our products are of high quality. Just like the service, in fact. We give our customers advice for all of the products. And the customers ask for more! They come back because they know that here they’ll get fresh products. Word-of-mouth does the rest.” 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 28 1304091_RA_CARREF_24-51_GB.indd 28 1304091_RA_CARREF_24-51_GB.indd 28 06/05/13 12:19 06/05/13 12:19 OUR PRODUCTS 03 05 FRESH OR YOUR MONEY BACK In June 2012, Carrefour set a milestone by launching its “Freshness Guarantee” campaign in its hypermarkets and supermarkets in France. Any customer who is not completely satisfied with the quality of a fresh product can come and exchange it within 72 hours or even get a refund if they have a Carrefour loyalty card. Information about this guarantee is on display in the centre of the market and fresh produce areas. It supports Carrefour’s “more confidence promise” and shores up the signifi- cant percentage of the Group’s turnover that fresh products account for. It is also an effect ive means of managing the teams, ensuring that the fresh products on display are always of the highest quality. LOW PRICES Carrefour’s commitment to everyday low prices also applies to fresh produce. In Spain, Carrefour is defending customers’ purchasing power. For example, it is offering people over the age of 65 a 4% to 8% discount – the equiv alent of VAT – on more than 4,000 fresh products in stores throughout the country. The scheme is designed to help the 7.9 million Spaniards over the age of 65 to get the most out of their budget. A similar scheme aimed at large families has also been introduced. Carrefour Marinopoulos is Greece’s largest retailer and is offering a 10% discount on all fresh products to customers who have been affected by the economic crisis. These include large families, the elderly and the unem- ployed. In supermarkets in France, the “Lowest Price Guarantee” campaign targets a selection of fresh products every day: a fruit, a vegetable, a fresh/cured meat product, a fish and a cheese. Alongside the “Freshness Guarantee” cam- paign, customers can be sure of getting high quality products at the best price. 04 01 A meat counter employee at the Ortiz Carrefour market in Buenos Aires (Argentina). 02 Fruit & vegetables counter at the Carrefour hypermarket in São Caetano do Sul (Brazil). 03 Customer at the C/ Mellado Carrefour express convenience store in Madrid (Spain). 04 The “Freshness Guarantee” campaign aimed at hypermarket and supermarket customers in France. 05 Cheese counter employee at the Gurme supermarket in Istanbul (Turkey). 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 29 1304091_RA_CARREF_24-51_GB.indd 29 1304091_RA_CARREF_24-51_GB.indd 29 06/05/13 12:19 06/05/13 12:19 OUR PRODUCTS 01 LOCAL PRODUCTS A selection of local products for local needs Carrefour has always given priority to products sourced locally, i.e. products from the country in which they are sold. More than 75% of all Carrefour food products come from local sup- pliers. Carrefour would like to strengthen this approach and give its store managers – particu- larly in hypermarkets – more freedom so that they can select and offer their customers a very local selection of products sourced from produc- ers located close to stores. 75% of Carrefour’s food products come from local suppliers LOCAL PRODUCTS ON THE SHELVES In Turkey and in Argentina, for example, 100% of all food products come from national sup- pliers. Carrefour is supporting the growth of thousands of SMEs and small producers, and is avoiding CO2 emissions related to importing the products. Carrefour is also fostering long- lasting relationships with local companies, helping them to adopt high-quality growth strategies that benefit everyone. In Spain in 2012, Carrefour invited more than 720 SMEs to promote their products in its stores. In China, the national “Direct Purchase” pro- gramme, which got under way in 2007, sets out to supply stores with fresh and dried fruit and vegetables without any intermediary 02 throughout the country, i.e. from one province to another, and at local level, within the same province. The products are sold to customers at low prices, guaranteeing better returns to more than 1 million farmers since 2008. In order to strengthen this approach, Carrefour China has introduced an initiative which ena- bles its customers to use their mobile phones to access information about the traceability of these products – from when they are first pro- duced up until the date they are delivered to the store. In Belgium, Carrefour’s teams select regional products made by producers within a 50 km radius of the stores, showcasing them in a specially animated area at weekends. And in Taiwan, Carrefour identifies local products by stamping them with “MIT: Made in Taiwan”. This emphasis on local products in stores is based on a culture of quality and trust which Carrefour has built, together with knowledge of local markets which store managers have acquired. A number of local initiatives also underpin the Group’s commitment. In June 2012, for example, customers from the Lucques hypermarket, in Italy, had free, guided 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 30 1304091_RA_CARREF_24-51_GB.indd 30 1304091_RA_CARREF_24-51_GB.indd 30 06/05/13 12:19 06/05/13 12:19 OUR PRODUCTS 05 HIGH-QUALITY PRODUCT LINES “Carrefour Quality Line” products symbolise the Group’s CSR(1) approach. By entering into partnerships with small farmers, it is able to offer its customers high-quality fresh products at the best possible prices. In 1992, a group of livestock farmers from France’s Manche dépar- tement contacted Carrefour and asked it to help save the Normande cow. This was the birth of the first “Carrefour Quality Line”. Twenty years later, partnerships with producers are flourish- ing throughout the world. Carrefour has 430 fresh core market products from these lines. The partnerships involve nearly 25,000 farmers and producers from the hearts of the regions in which the Group operates. Products include, for example, Labrunier grapes in Brazil, trout from the Ardennes in Belgium, nectarines in Greece, potatoes in Romania and lettuce in Taiwan. The Group contractually commits to purchasing volumes in the long term. In return, the produ- cers of our product lines commit to using sus- tainable farming practices: they limit their use of pesticides and fertilisers in their crops, they do not grow plant products out of the ground and they ensure that “Carrefour Quality Line” products can be traced from the field to the fork. Carrefour is a forerunner in its commitment to giving impetus to the local economy and safeguarding local expertise, while providing customers with high quality at fair prices. (1) Corporate social responsibility. 430 “Carrefour Quality Line” products as of the end of 2012 03 tours with the 50 fruit and vegetables farmers who supply the store every day with fresh products. REGIONAL RANGES Carrefour is also developing its ranges of regional products. The Reflets de France brand, for example, showcases France’s gastronomic heritage through 450 products made by 178 French SMEs. In Italy, products in the Terre d’Italia range showcase local expertise, using traditional production methods and recipes. Another eight products were added to the range in 2012 from the Aosta Valley, the Piedmont region and Sicily. The brand also has its own dedicated website now, showcasing gastronomic traditions from the country’s various regions and featuring a number of traditional recipes. Carrefour has also opened a temporary store in the heart of Milan’s railway station. 04 01 Local suppliers on show in the store: “The vegetables that you are buying here were harvested from my plot 24 hours ago.” Alcobendas Carrefour hypermarket in Madrid (Spain). 02 Using traditional methods or recipes, 04 Carrefour is increasing its ranges of fast-moving consumer regional products, such as Terre d’Italia and Reflets de France. 03 Carrefour promotes traditional local products on shelves to meet its customers’ expectations. Colisseo Carrefour hypermarket in Bucharest (Romania). 05 In 2012, Carrefour celebrated 20 years of “Carrefour Quality Line” products. 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 31 1304091_RA_CARREF_24-51_GB.indd 31 1304091_RA_CARREF_24-51_GB.indd 31 06/05/13 12:19 06/05/13 12:19 OUR PRODUCTS 01 02 03 EVERYDAY PRODUCTS Major brands and the Carrefour brand at a fair price In the grocery, beverage and health & beauty departments, Carrefour offers a combination of products from consumers’ favourite brands and Carrefour brands. In all the countries in which it operates, the Group applies an aggressive strategy of everyday low prices and attractive discounts on the products that are popular with customers. CUSTOMERS’ FAVOURITE PRODUCTS Because consumers are often very attached to certain brands, Carrefour offers its customers the lowest prices on their favourite products, while also offering a wide and simple range of Carrefour-branded products. As drivers of innovation and business growth, national- brand products make the stores dynamic and enjoyable places to shop. Throughout the year, a number of sales initiatives such as “the anni- versary month” and “kids’ day” brought excite- ment to stores along with exclusive promotions on customers’ favourite products. Own-brand products are segmented in a way that meets customers’ basic needs: Carrefour products, which stand for quality and a fair price; BIO for organic products; Baby and Kids; or also ECOplanet, a range of products attesting to the Group’s commitment to protecting biodiver- sity and natural resources. Carrefour also develops several specialised ranges, such as Viver in Brazil, Reflets de France and Terre d’Italia, and offers products with GMO-free and gluten-free labelling. “Choice, price and quality” Carrefour is working for you – At all its banners, Carrefour offers you a wide range of major brand and Carrefour-branded consumer products at the best prices. – Carrefour makes it easy for you to achieve a balanced and varied diet and commits to offering a selection of products that meet demanding and intangible quality standards. 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 32 1304091_RA_CARREF_24-51_GB.indd 32 1304091_RA_CARREF_24-51_GB.indd 32 06/05/13 12:19 06/05/13 12:19 OUR PRODUCTS 06 INNOVATIONS AT THE BEAUTY COUNTER In 2012, Carrefour launched a new beauty product brand, Les Cosmétiques Design Paris, a clear and attractive range of 650 professional-quality references at low prices: between 20% and 35% less than competitors’ prices for similar products. The fi ve ranges composing this brand meet all the needs of the female consumer: professional make-up, basic care items, a natural range and expert skin and haircare products. After three of the products were recognised in the Victoires de la Beauté awards in October 2012, the five Pro’s foundations and three Age Science skin lotions were voted Products of the Year for 2013. 01 A customer at the Carrefour Colisseo hypermarket of Bucharest (Romania). 02 From nappies to formula, Carrefour offered in 2012 a new range of over 140 products developed with experts, paediatricians and nutritionists for babies’ comfort and parents’ peace of mind. 03 A pioneer in organic products, Carrefour now offers over 2,000 organic food references. 04 A customer at the Ortiz Carrefour market in Buenos Aires (Argentina). 05 The “Lowest Price Guarantee” campaign covering more than 500 major brand products. 06 Carrefour commits to offering consumer products at the best prices at all its stores. The Carrefour hypermarket of São Caetano do Sul (Brazil). 04 05 WINNING BACK PURCHASING POWER Low prices promised – and delivered – through- out 2012. In January, the “Lowest Price Guarantee” applied at all French hypermarkets set the stage for a successful initiative. The prices of over 500 products from the most popular brands (biscuits, sodas, etc.) were reduced below the market rate, and customers were guaranteed to receive double the difference if they found a product at a lower price anywhere within 15 km of the store. At the end of May 2012, Carrefour extended its “Lowest Price Guarantee” pledge to 100 major brand organic products. These com- mitments demonstrate Carrefour’s aim for an offensive approach to prices over the long term, which boosts its customers’ purchasing power. 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 33 1304091_RA_CARREF_24-51_GB.indd 33 1304091_RA_CARREF_24-51_GB.indd 33 06/05/13 12:19 06/05/13 12:19 OUR PRODUCTS 01 NON-FOOD PRODUCTS A simple but attractive offer with great deals The non-food counters are organised into cat- egories meeting customers’ basic needs: small household goods, textiles, home appliances (photo equipment, DVDs, sound and multi- media equipment). Carrefour products and the major brands make up an offer that has some- thing for everyone and every budget. As con- sumer habits change, Carrefour is adapting its offer and working on value for money and the style of its non-food products, increasing the generalist dimension of its hypermarkets, offering supermarket customers the local ser- vices they expect and developing an innovative and competitive offer on the Internet. 1.4 million unique visitors on average to the French non-food website every week in 2012 FUN COLLECTIONS FOR THE HOME Combining permanent products and seasonal lines, Carrefour offers collections for the gar- den, DIY, entertainment, stationery, toys and linens. In the autumn, the “Lowest Price Guarantee” campaign covered 300 school- supply items and, to bring customers a magical Christmas, the guarantee was extended to 200 toys from major brands such as Playmobil, Hasbro and Mattel. Counters such as dinner- ware, DIY and automotive supplies regularly launched promotions on top-name brands, that considerably increase footfall. Carrefour is gradually recategorising its products by usage and clarifying the offer to meet customers’ expectations, and offering exclusive products such as the Tokyo garden furniture set and the 4-in-1 kitchen accessories set, as well as a new range of Carrefour ECOplanet toys made from FSC certified wood. 02 03 01 Book counter at the Carrefour hypermarket of Auderghem (Belgium). 02 Customers in the textile counter of the Carrefour hypermarket of Nice Lingostière (France). 03 The “autumn/winter Tex collection” (France) 04 Young customers in the multimedia counter of the Carrefour hypermarket in Bomerée (Belgium). 05 Customers in the stationery counter at the Carrefour hypermarket in São Caetano do Sul (Brazil). 06 An employee of the Istinye Carrefour store in Istanbul (Turkey). 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 34 1304091_RA_CARREF_24-51_GB.indd 34 1304091_RA_CARREF_24-51_GB.indd 34 06/05/13 12:19 06/05/13 12:19 OUR PRODUCTS 05 06 CARREFOUR’S APPROACH TO TEXTILES Tex, Carrefour’s textile brand, has always offered simplicity, quality and timeless basics and has been very successful. In addition to the permanent product lines, such as underwear and baby textiles, for which the banner has a certain legitimacy, Carrefour also offers spring/ summer a nd a utumn/winter s easonal c ollec- tions which, in 2012, were popular in France, Brazil and Argentina. The “100% cashmere sweater for €69” initiative, organised in record time in secret, won over Carrefour customers all over France. Sales periods, with their incred- ible prices, attract great numbers of customers to the textile counter. For Carrefour’s textile offer, the winning formula consists of guaran- teeing quality products at the best prices, intro- ducing trends and offering services. HOME APPLIANCES AND MULTIMEDIA Carrefour is re-designing its offer to better meet the needs of its customers and their new con- sumer habits. The in-store offer focuses on lead- ing products presented in pleasant spaces with expert sales staff and quality services such as delivery and installation. Small and large home appliances, TV/audio/photo/GPS, multimedia, telephone equipment and accessories also fea- ture low prices throughout the year and are promoted by wide-reaching campaigns. Customers were delighted by the many promo- tional offers introduced at European stores in honour of the Euro 2012 football champion- ship. Digital tablet computers were the leading product of the year 2012, with sales growing significantly. 04 MORE SERVICES FOR LESS Carrefour Mobile and Orange teamed up in France and launched a commitment-free mobile plan with 100 minutes of calling or 500 text messages for less than €5 per month. 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 35 1304091_RA_CARREF_24-51_GB.indd 35 1304091_RA_CARREF_24-51_GB.indd 35 06/05/13 12:19 06/05/13 12:19 OUR PRODUCTS CARREFOUR’S TRADE SERVICES Carrefour offers complementary products to go with daily purchases From financing solutions and entertainment to pharmacy products and petrol, Carrefour services are available in the shopping centre and store car parks to meet customer needs with the same commitment: quality products at the best price. CARREFOUR’S BANKING AND FINANCIAL SERVICES Carrefour offers its customers financing, sav- ings and insurance solutions at 824 agencies and financial services stands around the world. Operating close to the hypermarkets, the stands support Carrefour’s core business, in particular by offering the PASS card as well as financing solutions and warranty extensions for equipment. In 2012, Carrefour Soluções Financeiras, pre- sent at 144 stores in Brazil, signed a partnership 2.4 million customers have the PASS card in France with Itaú Unibanco, the biggest private bank in the country. It was an immediate success, with over 1 million cards issued, bringing its portfolio to nearly 7.6 million cards by the end of 2012. As in the other countries, Carrefour Argentina’s financial services actively support store sales by offering customers attractive plans such as the interest-free 30-installment payment in honour of the banner’s 30th anni- versary. In Taiwan, the partnership Carrefour signed with E. Sun Bank, one of the country’s largest banks, made it possible to expand oper- ations, in over 60 stores, and to introduce new advantages like the option of paying for trans- port with the Carrefour card. In France, Carrefour Banque launched a sav- ings account with one of the best rates on the market as well as a mobile application to man- age accounts remotely. Carrefour Banque is continuing to develop a credit offer with a responsible approach, paying particular atten- tion to ensuring that its customers’ budgets are properly balanced and that they do not run the risk of incurring excessively high levels of debt. Carrefour Banque also provides expertise in banking transactions, with over 372 million transactions processed in France in 2012. 01 “Savings, petrol, entertainment” Carrefour is working for you – Savings for all: Carrefour Banque offers a savings account with one of the best rates on the market. – Petrol at the best price: nearly 200 petrol stations at French hypermarkets have offered the “Lowest Price Guarantee”. – Affordable getaways: Carrefour Voyages celebrates its 20th anniversary and opens 10 new agencies in France. YOU CAN VISIT CARREFOUR BANQUE’S WEBSITE AT www.carrefour-banque.fr 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 36 1304091_RA_CARREF_24-51_GB.indd 36 1304091_RA_CARREF_24-51_GB.indd 36 06/05/13 12:19 06/05/13 12:19 OUR PRODUCTS 05 06 02 03 04 01 Carrefour Banque agency at the Mondeville hypermarket (France). 02 Pharmacy staff at the Carrefour hypermarket in São Caetano do Sul (Brazil). 03 A petrol station at the Alcobendas 04 Carrefour hypermarket in Madrid (Spain) and the “Lowest Price Guarantee” campaign on fuel in France. 05 Carrefour Voyages has 108 agencies in France and over 400 in Spain. 06 In France, customers can also rent a utility vehicle through “Carrefour Location” vehicle hire service. DAILY SHOPPING TASKS Reserving theatre tickets, buying flowers, printing photos or renting a truck for a move: Carrefour services, which differ depending on the country and consumer habits, make it easy for customers to optimise their shopping time and budget and thus enhance their loyalty to Carrefour. Customers greatly appreciate being able to travel at Carrefour prices, especially in times of crisis. In France, Carrefour Voyages celeb- rated its 20th anniversary and opened 10 new franchised agencies at shopping centres or in city centres, bringing the network to 108 agen- cies throughout the country. In Spain, over 400 Carrefour Viajes agencies and a new high- quality website now allow customers to travel with peace of mind at low prices. Price is always a concern when it comes to fill- ing up the petrol tank. Where possible, Carrefour installs petrol stations at its hyper- markets and supermarkets. For example, there are currently 83 petrol stations in Brazil, 102 in Spain and 25 in Italy. In France, nearly 200 hypermarket petrol stations committed in May 2012 to offering the “Lowest Price Guarantee” on fuel (excluding LPG): if the cus- tomer finds a lower price the same day at a competing petrol station within a range of 5 km, Carrefour will refund double the differ- ence on a full tank. The low-price strategy was continued, with fuel oil offered at cost price in France for three months. 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 37 1304091_RA_CARREF_24-51_GB.indd 37 1304091_RA_CARREF_24-51_GB.indd 37 06/05/13 12:19 06/05/13 12:19 OUR PRODUCTS Carrefour and its suppliers are committed to promoting responsible sourcing. For the past twenty years, the Group has been optimising its responsible sourcing strategy at global level to reduce its impact on the ecosystem and biodiversity, and to increase the economic sustainability of its operations. Carrefour helps its thousands of suppliers apply an approach based on sustainable development. From forest management to fishing and organic agriculture, from the issue of GMOs to the specifications for “Carrefour Quality Line” products, the Group helps build sustainable networks and promotes high-quality, affordable and responsible consumption. SEE PAGE 60 FOR THE CSR INDICATORS AND MORE INFORMATION AT www.carrefour.com A FEW INITIATIVES CARRIED OUT IN 2012 SUPPORTING OUR SUPPLIERS Carrefour is the only retailer to make a sustain- able development self-assessment tool available to its suppliers. Now backed by the ISO 26000 standard, it has been rolled out in the Group’s 12 countries and is available online in 15 lan- guages. Developed with WWF and Ademe(1), it consists of questions covering 49 criteria and also includes a carbon assessment. In 2012, 6,940 suppliers had access to the tool. (1) French energy-management agency. 6,940 suppliers had access to the sustainable development self-assessment tool in 2012 PROTECTING BIODIVERSITY Convinced of the need to take action to protect forests, which play a key role in the fight against climate change, Carrefour has been dedicated since 1997 to implementing a comprehensive strategy on responsible sourcing. The Group has committed to an approach that aims to protect biodiversity, natural resources and forests, which has led to concrete action. For example, 100% of the paper used for catalogues in Europe is FSC(2) or PEFC(3) certified, 90% of own-brand garden furniture and decorative elements in Argentina use FSC wood, and palm oil is being replaced by sustainable oil, benefit- ing consumers and helping the Group reach the goal of using only sustainable palm oil in its own-brand products by 2015. In 2012, Carrefour Indonesia launched a Carrefour ECOplanet cooking oil, the first RSPO(4) certi- fied sustainable palm oil in the country. Carrefour has also developed a “Wood Charter” for its European suppliers to ensure that their supply is legal and that they respect human rights. The Group is now rolling out this initiative outside Europe. Carrefour ranked no. 1 among retailers in WWF France’s 2012 wood monitoring report. (2) Forest Stewardship Council. (3) Programme for Forest Certification. (4) Roundtable on Sustainable Palm Oil. 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 38 1304091_RA_CARREF_24-51_GB.indd 38 1304091_RA_CARREF_24-51_GB.indd 38 06/05/13 12:19 06/05/13 12:19 OUR PRODUCTS 01 02 03 04 01 Carrefour is committed to offering own-brand garden furniture and decorative items of FSC-certified wood. 02 Suppliers must sign the Social and Ethical Charter before working with Carrefour. 03 The Carrefour ECOplanet range consists of products obtained using methods protecting biodiversity and natural resources. 04 Carrefour offers a wide range of fair-trade products. In France, the stores offer 548 SKUs, including 115 from own brands. IMPROVING LABOUR STANDARDS The Group maintains a proactive policy aimed at ensuring that all of its suppliers comply with the principles of human rights. It requires that suppliers of own-brand products sign the Social and Ethical Charter before the working relationship begins, and calls for regular social audits. In 2012, 1,044 social audits were con- ducted worldwide and all of Carrefour’s sup- pliers signed the charter. Carrefour also applies a preventive strategy of assisting its suppliers in a progress-based approach, in particular through training. Carrefour also works with other large retailers to harmonise audit meth- ods and shares its results. THE “BOULE BIO” CELEBRATES ITS 20th ANNIVERSARY In 1992, Carrefour became the first French retailer to offer an organic product made in-house: the “Boule Bio” bread. Today, organic products are available at Carrefour stores in all of the Group’s countries. Carrefour also continues its promotional actions aimed at affordable responsible consumption for all. As the main retailer of organic products in France, Carrefour also made a price commitment in 2012 with its “Lowest Price Guarantee” on 100 organic products from the most popular major brands. At the crossroads of consumer trends focused on healthy, natural, local and eco-friendly products, organic products have a future at Carrefour. 1,044 social audits conducted in 2012 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 39 1304091_RA_CARREF_24-51_GB.indd 39 1304091_RA_CARREF_24-51_GB.indd 39 06/05/13 12:19 06/05/13 12:19 a smile makes all the difference 1304091_RA_CARREF_24-51_GB.indd 40 1304091_RA_CARREF_24-51_GB.indd 40 06/05/13 12:19 06/05/13 12:19 knowing yourself and recognising others our employees working for you means using our employees’ dedication and expertise to meet your every need being able to count on the employees for help is priceless 1304091_RA_CARREF_24-51_GB.indd 41 1304091_RA_CARREF_24-51_GB.indd 41 06/05/13 12:19 06/05/13 12:19 OUR EMPLOYEES our priorities embody the retail spirit and commit to responsible trade The 365,000 Carrefour employees around the world are the leading asset of the Group, which has committed to strengthening its customer-centred approach and improving the performance of its men and women to bring out their retail talents. Training, development, empowerment and diversity – these are the commitments that allow each employee to contribute to Carrefour’s ambition and satisfy our customers every day. 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 42 1304091_RA_CARREF_24-51_GB.indd 42 1304091_RA_CARREF_24-51_GB.indd 42 06/05/13 12:19 06/05/13 12:19 OUR EMPLOYEES INSTILL THE RETAIL SPIRIT AND A SENSE OF INITIATIVE We are reinvesting in the fundamental principles of trade: buying and selling. You are about to rediscover Carrefour. We have a passion for the products, enthusiasm for contacts with our customers and a sense of service. We simplify our employees’ work, train them and assist them every day so that they are more available to help you and answer your questions. We will encourage initiatives that make you want to shop at our stores. GUARANTEE KNOWLEDGE TRANSFER AND PREPARE THE MANAGEMENT OF TOMORROW To help employees get back to the basics of the business and take initiative, we are investing in training, field experience and work/study training. Experienced employees are called upon to identify ENCOURAGE THE DEVELOPMENT OF FAIR AND RESPONSIBLE TRADE Informing and training our employees to ensure responsible trade is a key commitment for the company. Their actions to help vulnerable populations and disaster victims and their solidarity work have always added a little extra heart potential in their teams, share their knowledge to Carrefour retailers. of the business and help prepare the management of tomorrow, respecting and promoting diversity among our staff. EMPOWER THE STORES FOR YOUR SATISFACTION We go back to reality on the ground, where the battle over every product and every price takes place every day. We are decentralising our organisation according to the principle of subsidiarity: autonomy and rigour at each level of our organisation. Store employees, beginning with the store manager, are listening to you to adapt the offer to your expectations and the prices to local competition. We encourage referencing local products and fully integrating the local community through meetings to better assess your expectations, communicating with regional media and supporting sport clubs and local associations. PROMOTE OUR EMPLOYEES’ PROFESSIONAL DEVELOPMENT In addition to the product offer, prices, stores and service, you expect Carrefour to listen to your needs and be attentive. Happy employees mean happy customers, so we do everything we can to promote their well-being. Listening, an ongoing social dialogue, a respectful work environment and proper compensation are levers for our staff performance and for the trust you have in them. 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 43 1304091_RA_CARREF_24-51_GB.indd 43 1304091_RA_CARREF_24-51_GB.indd 43 06/05/13 12:19 06/05/13 12:19 OUR EMPLOYEES Develop the passion for retail Working at Carrefour means being in direct contact with customers on a daily basis. Every day at the stores, team spirit, the passion for the products we sell, the sense of service, the respect of others and initiatives make all the difference, for true, authentic relations and to give customer satisfaction. In addition to this, the Carrefour retailer is distinguished from the others thorough detailed knowledge of the local context, from producers to competing stores. CAREERS FOR ALL Carrefour has nearly 120 generalist and spe- cialist jobs, almost 90% of them involving direct contact with customers. For all the busi- ness lines, the passion for retail, the sense of human relations, the attention paid to co- workers and customers and the commitment to doing one’s job well are fundamental char- acteristics necessary for working at Carrefour. The banners hire sales employees, checkout employees, butchers, fishmongers, sector man- agers and store managers. And all along the logistics chain, a variety of expertise is needed, including supplier, order picker, team manager, dock manager and quality inspector. With this wide range of jobs, the Group gives everyone a chance and opens its doors to talents of all kinds: young or senior, man or woman, with or without a degree, experienced or begin- ner. In all the countries in which it operates, Carrefour implements initiatives benefiting people excluded from the workforce, such as the operational employment preparation, in 01 02 which job seekers can receive training from Carrefour in the business lines of its stores. Since its introduction in 2011, Carrefour France has trained over 112 people, 93 of them hired with permanent contracts. Promoting employment for young people is also a key part of Carrefour’s strategy. Every year, it hires 1,400 young people in a work/study training course in Brazil and Spain, 4,000 young people in pro- fessionalisation or work/study situations in France and sponsors young graduates from disadvantaged neighbourhoods in France to support them in their search for employment. DIVERSITY IS A SOURCE OF STRENGTH As signatory of the Diversity Charter since 2004, the Carrefour group works actively to fight dis- crimination. It promotes employment for young people, encourages people with disabilities to enter the workforce, supports seniors and strives to ensure gender equality at the workplace. In 2012, Carrefour France trained its hypermar- ket managers in interview practices to ensure in particular that principles of objectivity and non- discrimination are applied in the hiring process. In Brazil, the banner launched a diversity 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 44 1304091_RA_CARREF_24-51_GB.indd 44 1304091_RA_CARREF_24-51_GB.indd 44 06/05/13 12:19 06/05/13 12:19 OUR EMPLOYEES 04 01 An employee of the Alcobendas Carrefour hypermarket in Madrid (Spain). 02 An employee of the Carrefour market in Tongeren (Belgium). 03 An employee with customers of the Guangzhou Xinshi Carrefour store in Canton (China). 04 Employees of the C/ Mellado Carrefour express convenience store in Madrid (Spain). 05 An employee of the Carrefour market in Tournefeuille (France). 03 05 programme with the goal of developing respect, integration, acceptance of all, and encouraging initiatives designed to offset inequalities. In all its countries, Carrefour promotes work- place gender equality. For example, the “Women Leaders” programme aims to increase the presence of women in management teams throughout the world. Women represent 57% of Carrefour staff and 35.7% of its manage- ment. In 2012, this proactive programme led to wide-reaching local initiatives such as the hiring of only women graduates for executive positions in merchandise and logistics in Argentina. The Group also supports employ- ment for workers with disabilities, with nearly 10,100 disabled employees at its various entities at the end of 2012. Together with the International Labour Organisation (ILO), Carrefour has committed to promoting the employment of people with disabilities throughout the world. Carrefour also operates locally and works in close partnership with local players such as Ekon in Poland and Once in Spain for the recruitment at its stores and warehouses. TRAINING FOR BETTER PERFORMANCE Listening, advising and selling are key skills for someone in the retail business, and Carrefour is dedicated to developing them through training offered at all stages of its employees’ careers: training before and after beginning a new posi- tion with integration paths for new arrivals that help them learn the corporate culture, training during their career to develop their skills, and special programmes to prepare for and support career development. In total, nearly 5 million hours of training were provided in 2012, or an average of 17.1 hours of training per employee. 93.6% of our employees have permanent work contracts LOCAL JOBS The variety of jobs available and the priority given to local recruitment make the Carrefour group a key player for people seeking to enter the workforce in the areas in which it operates. All around the world, the Group encourages recruitment as close to its stores as possible and develops innovative recruitment methods. In France, for the opening of the new Lyon Confl uence hypermarket, Carrefour launched a local recruitment campaign to create its team composed of store employees and assistants, checkout staff and managers. All told, nearly 420 candidates in Lyon and surrounding areas were interviewed, and 140 were hired by the store, over 85% of them with permanent contracts. 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 45 1304091_RA_CARREF_24-51_GB.indd 45 1304091_RA_CARREF_24-51_GB.indd 45 06/05/13 12:19 06/05/13 12:19 OUR EMPLOYEES In France, over 30% of all employees hired do not have a diploma, and a large majority of them has completed less than two years of university studies. Carrefour facilitates access to validation of prior experience for those who are interested to allow them to obtain a certification. The intro- duction of trade employee or logistics officer professional certificate schemes also allow employees without diplomas to undergo training and earn a certificate that is recognised in the profession. Where possible, the Group tries to roll out similar schemes in other countries. Since 2012, Carrefour has been offering training resulting in a diploma in Romania, Italy, Poland and Belgium, where the “Carrefour Academy” allows store department assistants and managers to obtain business unit manager diplomas. Offered by Carrefour since 2008, the “EvoluPro” training allows employees experiencing diffi- culty with the French language to acquire the basics with one day of training per week over nine months, financed by the company. In the 2011-2012 session, 240 employees completed training. Carrefour also offers training to its employees to improve their management skills, mastery of computerised tools, management of fresh products and skills in customer relations. The Group relies in particular on training- referent stores and experienced employees to transmit the knowledge, best practices and expertise of their business lines. In France and Spain, for example, an internal franchisee recruiting scheme was introduced. It is based on the transfer of expertise and ongoing technical and business assistance. 01 Financing stand employees at the Carrefour hypermarket of São Caetano do Sul (Brazil). 02 An employee of the Tien Mou Carrefour hypermarket in Taipei (Taiwan). 03 An employee of the C/ Principe de Vergara Carrefour market in Madrid (Spain). 03 01 02 TALENT AND CAREER MANAGEMENT With a large number of jobs and an international presence, Carrefour offers a wide range of career paths and real opportunities for mobility. Leveraging the skills acquired by its employees and implementing a proactive training strategy, Carrefour promotes career development for its employees. The Group set up “career committees” at all levels of the organisation to identify talent, opportunities for career development and succession plans. Employees also express their desires in terms of career development and training during offi cial interviews with their supervisors. 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 46 1304091_RA_CARREF_24-51_GB.indd 46 1304091_RA_CARREF_24-51_GB.indd 46 06/05/13 12:19 06/05/13 12:19 OUR EMPLOYEES 02 01 Employees at the Colisseo Carrefour store in Bucharest (Romania). 02 An employee at the Carrefour market in Tongeren (Belgium). 03 Employees at the Carrefour hypermarket in La Chapelle Saint-Luc (France). 01 03 Promoting employee confi dence To provide customers with quality service, form bonds with them and make them want to come back to Carrefour, employees must first feel comfortable in their career, position and team. So, the Group has introduced an effective work organisation scheme that respects employee needs. BALANCING WORK AND PERSONAL TIME Carrefour is committed to upholding interna- tional principles of human rights and labour rights in all the countries in which it operates, and to ensure that its suppliers also comply. Furthermore, the Group strives to find balance between the performance of its organisation and its employees’ well-being. For this reason, where possible, Carrefour aims to increase the number of hours worked by its part-time employees, who represent less than 24% of its total staff. In French hypermarkets, part-time employees now work a minimum of 30 hours per week, with the exception of workers with student contracts. Employees may also move toward full-time employment with our job- versatility initiative in which they perform a part of their work in another department of the store or in another position and thus develop new skills. By the end of 2012, nearly 1,300 employees, 92% of them women, had taken advantage of the job-versatility scheme at French hypermarkets. The pooling of work schedules also allows checkout employees to plan their worktime in accordance with their wishes and the store activity. This organisation, which was launched in France in 1998, is now in use at over 200 hypermarkets, and testing began in 2012 in Belgium. 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 47 1304091_RA_CARREF_24-51_GB.indd 47 1304091_RA_CARREF_24-51_GB.indd 47 06/05/13 12:19 06/05/13 12:19 OUR EMPLOYEES 01 01 A Carrefour drive employee at the La Chapelle Saint-Luc hypermarket (France). 02 An employee at the Santo Amaro Carrefour bairro supermarket in São Paulo (Brazil). 03 An employee at the Ortiz Carrefour market in Buenos Aires (Argentina). 04 Employees at the Guangzhou Xinshi Carrefour hypermarket in Canton (China). 05 An employee at the Carrefour market supermarket in Tongeren (Belgium). its employees. I n Sp As a signatory of the Parenthood Charter in 2008, the Carrefour group is committed to tak- ing concrete action in this area to help create optimal conditions for ain, for example, employees now have the possibility of adding annual leave to parental leave. In Poland, employees had the opportunity to par- ticipate in time-management training to help them organise and plan their activities more effectively. In France, other provisions related to parental issues were adopted. These include a pilot programme of inter-company daycare centres in certain cities covering several supermarkets. Carrefour also strives to ensure the health and safety of both its employees and customers. In addition to meeting regulatory requirements, the Group mobilises its employees on hygiene and safety rules, provides accident-prevention training, launches awareness-raising campaigns and conducts regular audits of its facilities. In Spain, for each workstation, Carrefour drew up a list of the protective equipment necessary for the employee’s safety and offered specific train- ing courses in risk prevention. For several years, the Carrefour group has also been pursuing an approach aimed at preventing workplace psy- cho-social risks and strives to end musculo- skeletal problems by introducing, for example, ergonomic equipment at its French hypermar- kets and supermarkets to limit handling operations. CONSTRUCTIVE DIALOGUE Carrefour earns the trust of its employees by truly listening to their needs and working with them to ensure optimal working conditions. This also promotes individual and collective progress. Individually, in every country in which the Group operates, each employee is invited to express their wishes in terms of pro- fessional development or training in an annual meeting with their manager. For more than twenty years now, Carrefour has been regularly surveying its employees in the various countries to take stock of their expectations and views regarding key subjects. These include the “lis- tening to employees” surveys, “focus groups”, Internet surveys in France and Italy and “encuesta compromiso” in Argentina. Targeted action plans are then implemented to increase employees’ commitment. In 2012, the “HR Fundamentals” were rolled out with the goal of giving store managers and their managers the tools they need to excel in the areas of hiring, orienting new employees and managing careers. The social dialogue is part of Carrefour’s cor- porate culture. The Group is a pioneer in terms of union representation at all levels of the com- pany. In 2012, social dialogue continued at an active level. In Turkey, a new three-year collec- tive agreement on pay increases was negotiated and signed. In France, the mandatory annual negotiations gave rise to new benefits for hyper- market, supermarket and logistics employees. In Poland, 138 “open house” events were held to allow union representatives to meet with Carrefour employees. In Belgium, three new 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 48 1304091_RA_CARREF_24-51_GB.indd 48 1304091_RA_CARREF_24-51_GB.indd 48 06/05/13 12:19 06/05/13 12:19 OUR EMPLOYEES collective labour agreements were signed. They concerned work organisation, price reductions and the payment of non-recurring benefits related to performance. At European level, the dialogue continued and developed within the Carrefour European Consultation and Information Committee among the European social partners and Carrefour’s General Management. MOTIVATING COMPENSATION AND BENEFITS Carrefour offers each employee the opportunity to develop their skills and rise up in the com- pany through special training programmes and professional development schemes. The Group offers attractive, fair compensation in line with the local practices of each market, as well as appealing benefits that are essential to their well-being. French employees, for example, have the chance to participate in mandatory and dis- cretionary profit-sharing plans. In the same spirit, a discretionary profit-sharing system dedicated to the stores and merchandise was launched in Brazil in 2012 to recognise employ- ees who made a decisive contribution to profit- ability. All of Carrefour’s employees in China will be eligible for a discretionary profit-sharing plan in 2013. The Group also encourages employees to save by offering a Group savings plan with six diversified funds, one of which aims to develop employee shareholding. At December 31, 2012, Group employees held 1.17% of the company’s share capital through the Group employee savings plan. In each of the countries, employee benefit schemes adapted to local practices were also introduced. In this way, Carrefour helps improve the daily life of its employees and their families, in particular though mutual health insurance or discounts on purchases. Some programmes throughout the world also allow employees to take advant- age of discounts and advantages at Carrefour stores or those of other banners, like in Belgium with the “For You” club and its employee card. Other complementary initiatives strengthen the 02 04 03 05 bonds among employees. For example, the “Carrefour Life” programme in Spain offers activities for employees and their families. In 2012, over 600 children of employees enjoyed the summer camps held in various Spanish vil- lages with sport or nature as special themes. In Taiwan, nearly 2,000 employees participated in the first cycling relay race between stores cover- ing almost 2,000 km in 45 days. The “Carrefour Taiwan Sport Day” offered a truly Olympic day to all the country’s teams while the latest “Carrefour Taiwan Family Day” once again delighted employees’ families. 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 49 1304091_RA_CARREF_24-51_GB.indd 49 1304091_RA_CARREF_24-51_GB.indd 49 06/05/13 12:19 06/05/13 12:19 OUR EMPLOYEES Carrefour and its employees are committed to being a socially-responsible retailer for local communities. The Group is committed to solidarity initiatives, thanks to the energy of its employees and the high performance of its distribution logistics in all the countries in which it operates. In all the districts, cities, regions and countries in which Carrefour is present, the Group shows its solidar- ity by carrying out social and humanitarian initiatives. At the level of each country, these are conducted through its stores or dedicated facilities while at international level they are handled by Carrefour’s corporate foundation. To reduce exclusion, Carrefour organises and coordinates donation campaigns and consumer-good collection drives, supports the opening of social gro- cery stores, assists with the development of farm production, promotes food-industry careers and contributes humanitarian aid to people in emergency situations. MORE INFORMATION ON THE CARREFOUR FOUNDATION S SOLIDARITY INITIATIVES AT www.fondation-carrefour.org ’ A FEW INITIATIVES CARRIED OUT IN 2012 FOOD SOLIDARITY Food is Carrefour’s core business. Th e Group plays a key role in food donations through- out the world. In Belgium, Spain and France, fresh products withdrawn from the shelves are donated to local organisations such as food banks. In 2012, 350 tonnes of products in Belgium and 1,200 tonnes in Spain were collected and donated. In Taiwan, Carrefour and its corporate foundation were the exclu- sive sponsors of the food-aid programme “De- liver warmth in winter” launched by the Tai- wanese Red Cross for the Chinese New Year. With the participation of employees from 26 stores, the team was able to serve a real holi- day meal to over 1,000 disadvantaged fami- orts lies. In A rgentina, Carrefour notably supp particularly the food bank foundation in its nutrition e ff orts. Over €200,000 have been invested, with support from the Carrefour Foundation, in the renovation and outfi tting of a 2,350 sq. m warehouse opened in 2012 for the purpose of storing, sorting and distribut- ing food to the disadvantaged. In response to the social issues surrounding food, Carrefour, through its corporate foundation, also sup- ports the development of social grocery stores. A place for sharing and interacting, social grocery stores off er everyday products to the disadvantaged at between 10% and 50% of the usual price. Working to end exclusion with- out increasing dependence on social welfare, they off er benefi ciaries a choice of products and promote a sustainable return to the work- force. Th e majority of these stores’ staff are in fact former benefi ciaries. CUSTOMERS’ GENEROSITY Carrefour encourages its customers to join in socially-responsible initiatives. In 2012, for the fourth year in a row, Carrefour France was involved in the Restos du Cœur’s annual collec- tion drive. Result: 1,850 tonnes of food, or a third of the total volume, were collected in two days thanks to the support of 3,000 Group employees, the organisation’s volunteers and the generosity of customers. In Spain, customers 83.44 million meal equivalents were provided to the various food-aid networks in 2012 (donations and collection drives in France) 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 50 1304091_RA_CARREF_24-51_GB.indd 50 1304091_RA_CARREF_24-51_GB.indd 50 06/05/13 12:19 06/05/13 12:19 OUR EMPLOYEES 01 The Carrefour Foundation coordinates and relays food and non-food donation campaigns and collection drives. Collection drive benefiting food banks at the Boulogne-Billancourt Market supermarket (France). 02 Carrefour Argentina and the Carrefour Foundation helped local populations of the Buenos Aires region that were victimised by the torrential rains of April 2012. 03 The Carrefour Foundation supports food-industry training programmes for people facing social exclusion. In China, the “Shanghai Young Bakers” programme aims to train disadvantaged young people in French bread and pastry-making techniques. 01 02 03 were invited to participate in a collection drive benefiting the Spanish food bank federation (FESBAL), which assists 1.3 million disadvan- taged people through its network of 52 food banks. For the new school year in the autumn, Carrefour encouraged the customers of 169 Spanish hypermarkets to donate and matched their funds. The initiative raised the equivalent of €395,000 in school supplies for the Spanish Red Cross and allowed it to provide supplies to 16,000 disadvantaged schoolchildren. At the same time, Carrefour France invited its hyper- market customers to donate their old bookbags and backpacks. It gives them to the cooperative Le Relais, a member of Emmaüs France, which refurbishes them and provides them to disad- vantaged children. EMERGENCY AID As a local actor, Carrefour assists humanitarian organisations and its customers in the event of natural or industrial disasters. Key to the success of these efforts are the Group’s logistics expertise and the involvement of its employees, warehouses and shippers, who join in by shipping aid supplies. Thanks to its capacity to respond quickly and the material resources it is able to mobilise, basic products can be shipped to victims in just a few hours. Whether it’s a local initiative by a store, a nationwide c ommitment of Carrefour or an international action of the Carrefour Foundation, solidarity is a mobilising force. In 2012, Carrefour Italy encouraged its customers to help the victims of the earthquake in Emilia-Romagna. They were invited to exchange loyalty points for €5 donations, with the value matched by Carrefour Italy. In total, nearly €740,000 were collected and over €1.4 million donated. In China, in July 2012, the region of Beijing experienced the most deadly and destructive flooding it had seen in more than 60 years. Carrefour China teamed up with the local government of Fangshan to assist victims in the first few hours of the d isaster. The initiative was supported by the Foundation through a specific contribution. The contribution made it possible to send basic food products (milk, rice, dry goods, water) and non-food products (hygiene products, anti- septics) and to provide 25,000 victims with thermoses, electric kettles and water purifiers. OVER €720,000 TO BENEFIT CHILDREN In June 2012, the second “Boucles du Cœur” event attracted over 300,000 customers and employees from 800 Carrefour stores of all formats throughout France. Together, they organised 210 events featuring sports competitions or tastings of regional products, and stimulated a great deal of generosity which allowed to collect over €720,000 – to which the Carrefour Foundation added €200,000 – to benefit the organisations “SOS Villages d’Enfants” and “Fête le Mur”, which serve children in need. 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 51 1304091_RA_CARREF_24-51_GB.indd 51 1304091_RA_CARREF_24-51_GB.indd 51 06/05/13 12:19 06/05/13 12:19 managed, targeted investments for sustainable growth 1304091_RA_CARREF_52_72_GB.indd 52 1304091_RA_CARREF_52_72_GB.indd 52 06/05/13 12:30 06/05/13 12:30 improving performance is our foremost responsibility our performance working for you means making the commitment to create value every day, sustainably and responsibly a worldwide presence and local responsibility 1304091_RA_CARREF_52_72_GB.indd 53 1304091_RA_CARREF_52_72_GB.indd 53 06/05/13 12:30 06/05/13 12:30 OUR PERFORMANCE our priorities restore our success and profitability to give ourselves the means needed for our development Investing in prices and in the renovation of the store network is the Group’s top priority. This entails gen- erating resources for our development by increasing efficiency and lowering costs, while, at the same time, improving your shopping experience in our stores. 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 54 1304091_RA_CARREF_52_72_GB.indd 54 1304091_RA_CARREF_52_72_GB.indd 54 06/05/13 12:30 06/05/13 12:30 OUR PERFORMANCE ENSURE PROFITABLE SALES GROWTH While aiming to make our businesses more profitable, every effort is made to increase our sales by proposing attractive commercial offers, continuing to expand our store network and developing new distribution channels. REMAIN DISCIPLINED AND STRENGTHEN OUR FINANCIAL STRUCTURE The resources generated by the divestment of assets in 2012 are enabling the Group to strengthen its financial structure by reducing its debt. In addition, Carrefour constantly strives to control its working capital requirements and costs by spending less and spending more wisely at every level of the company. INCREASE OUR CAPITAL EXPENDITURES IN A MANAGED, TARGETED WAY In order to pursue our multi-local and multiformat development, we concentrate our resources in countries where we have strong strategic positions, we give ourselves the means to achieve our objectives and we adapt our investments in expansion. We will thus CONTINUE TO IMPROVE OUR ENVIRONMENTAL AND SOCIAL PERFORMANCE By making sustainable development a focal point of our business model – in our sourcing, our products, our packaging, our stores and our human resources – we are in a strong position to consistently be a more responsible company and allocate more resources to renovating our stores, to generate sustainable growth that benefits particularly in France. all stakeholders. SIMPLIFY OUR OPERATING METHOD The company’s governance at every level – from the Group to the store – must evolve in order to be more effective. It is time to return to simple organisational principles and facilitate decision-making processes through decentralisation and giving responsibility to the store employees. This operating method will increase efficiency while limiting unnecessary and wasteful spending. 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 55 1304091_RA_CARREF_52_72_GB.indd 55 1304091_RA_CARREF_52_72_GB.indd 55 06/05/13 12:30 06/05/13 12:30 OUR PERFORMANCE Financial overview The growth of the business in 2012 was driven by strong demand and expansion in emerging markets, particularly in Latin America. Current operating income held steady despite a difficult economic environment in most of the mature countries in which the Group operates, especially in southern Europe. The Group significantly improved its financial structure, with net debt of €4.3 billion at the end of 2012, down by €2.6 billion. In accordance with IFRS 5, income and expenses relating to discontinued operations (Greece, Singapore, Colombia, Malaysia, Indonesia) were reclassified on the “Net income of discontinued operations” line of the consolidated income statement in 2011 and 2012. FIND MORE INFORMATION IN THE “PERFORMANCES” SECTION AT www.carrefour.com Net sales €76,789 million +0.9% COMPARED WITH 2011 Sales rose by 0.9% compared with 2011 at current exchange rates. At constant exchange rates, growth was 1.6%, driven by emerging markets, particularly in Latin America. The contribution of emerging markets (Latin America and Asia) increased significantly in 2012, accounting for 26.8% of sales (25.4% in 2011). The growth in sales stemmed from a 1% increase in like-for-like sales, an expansion-related contribution of 0.6% and a negative effect of exchange rate changes of 0.7%. In France, sales rose by 0.5%, with strong performance in food sales. Sales in Europe declined by 2.7% at constant exchange rates (–3.1% at current exchange rates), reflecting the decrease in consumption, particularly in southern Europe. Sales in Latin America rose by 12.1% at constant exchange rates (4.6% at current exchange rates), driven by strong like-for-like performance. Sales in Asia grew by 0.5% at constant exchange rates (+10.3% at current exchange rates), driven by ongoing expansion. 76,789 76,067 2011 2012 NET SALES (IN €M) 6,400 14,174 20,873 35,341 France Europe (excl. France) Latin America Asia 2012 NET SALES BY GEOGRAPHIC REGION (IN €M) 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 56 1304091_RA_CARREF_52_72_GB.indd 56 1304091_RA_CARREF_52_72_GB.indd 56 06/05/13 12:30 06/05/13 12:30 OUR PERFORMANCE Current operating income Net income, Group share €2,140 million –2.6% COMPARED WITH 2011 €1,233 million x 3.3 COMPARED WITH 2011 Current operating income amounted to €2,140 million, stable at constant exchange rates and down by 2.6% at current exchange rates, and represented 2.8% of sales, compared with 2.9% in 2011. The improvement in France and the significant growth in Latin America nearly offset the declining profitability of operations in southern Europe. Net income, Group share, was €1,233 million, up sharply compared with €371 million in 2011. Net income from recurring operations, Group share, amounted to €113 million. Net income from discontinued operations, Group share, was €1,120 million, which mainly stemmed from the disposals completed in 2012. 2,197 2,140 1,233 1.81 2011 2012 CURRENT OPERATING INC OME (IN €M) 929 608 509 168 –74 France Europe (excl. France) Latin America Asia Global functions 2012 CURRENT OPERATING INCOME BY GEOGRAPHIC REGION (IN €M) Net debt €4,320 million –37% COMPARED WITH 2011 371 0.56 2011 2012 NET INCOME, GROUP SHARE (IN €M) 2011 2012 NET INCOME, GROUP SHARE, PER SHARE (IN €) 2011 113 2012 – 1,865 NET INCOME FROM RECURRING OPERATIONS, GROUP SHARE (IN €M) 2,237 1,120 2011 2012 NET INCOME FROM DISCONTINUED OPERATIONS, GROUP SHARE (IN €M) 6,911 4,320 2011 2012 NET DEBT (IN €M) The Group’s net debt decreased by €2.6 billion from €6.9 billion at the end of 2011 to €4.3 billion at the end of 2012, mainly as a result of income from disposal of the Group’s operations in Colombia and Malaysia. The net debt to EBITDA ratio improved significantly at 1.2 x (1.8 x in 2011). 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 57 1304091_RA_CARREF_52_72_GB.indd 57 1304091_RA_CARREF_52_72_GB.indd 57 06/05/13 12:30 06/05/13 12:30 OUR PERFORMANCE Stock market overview At December 31, 2012, Carrefour shares were in 22nd position in the CAC 40 index in terms of market capitalisation, with a weighting of 1.6%. FIND MORE INFORMATION IN THE “PERFORMANCE” SECTION AT www.carrefour.com Capital Blue Capital(1) 66,556,464 9.38% 130,604,274 16.23% Number of shares In % Number of voting rights In % Colony Blue Investor(2) 15,166,771 2.14% 15,166,771 CZ2 Blue SARL(3) Blue AIV SARL(4) 860,148 0.12% 176,691 0.02% 860,148 176,691 Groupe Arnault SAS(5) 2,656,752 0.37% 2,656,752 1.88% 0.11% 0.02% 0.33% 3.15% BUNT(6) Subtotal Employees Shares owned Controlled shares Public Total 25,370,250 3.58% 25,370,250 110,787,076 15.62% 174,834,886 21.73% 8,267,870 1.17% 15,258,370 1.90% 6,147,949 0.87% 584,011,758 82.35% 614,531,681 76.37% 709,214,653 804,624,937 (1) of which 2,508,612 Carrefour shares held through assimilation under a purchase option. As of December 31, 2012, Blue Capital held 65,302,137 shares granted double voting rights. (2) held through assimilation of Carrefour shares loaned by Colony Blue Investor SARL with right of recall at its sole option. (3) held through assimilation of Carrefour shares coming from the part of purchase option with cash issue (as of December 31, 2012). (4) held through assimilation of Carrefour shares that can be acquired by Blue AIV SARL under a purchase option. (5) held through assimilation of Carrefour shares that can be acquired under a purchase option. (6) former Blue Participations et Gestion of which 24,999,996 shares held through assimilation of Carrefour shares that can be acquired under a purchase option Blue Capital, a Société à Responsabilité Limitée (limited-liability company) under Luxembourger law, Colony Blue Investor, a Société à Responsabilité Limitée (limited-liability company) under Luxembourger law, CZ2 Blue, a Société à Responsabilité Limitée (limited-liability company) under Luxembourger law, Blue AIV, a Société à Responsabilité Limitée (limited-liability company) under Luxembourger law, Groupe Arnault, a Société par Actions Simplifiée (joint-stock company) and BUNT, a Société à Responsabilité Limitée (limited-liability company) under Luxembourger law have declared that they are acting in concert. 709,214,653 shares at December 31, 2012 €13,720 million in market capitalisation Dividend €0.58 per share The Board of Directors decided to submit for approval at the Shareholders’ Meeting to be held on April 23, 2013 a dividend of €0.58 per share for the year ending December 31, 2012, payable in cash or in Carrefour shares. The proposed dividend amounts to a payout ratio of 45% of net income, Group share, adjusted for exceptional items, in line with the policy set out in March 2012. 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 58 1304091_RA_CARREF_52_72_GB.indd 58 1304091_RA_CARREF_52_72_GB.indd 58 06/05/13 12:30 06/05/13 12:30 OUR PERFORMANCE Carrefour stock Quoted price(1) (in €) highest lowest at December 31 2008(2) 2009(2) 2010(2) 2011 2012 52.52 33.79 41.28 24.68 27.52 22.89 33.56 30.85 30.85 36.08(2) 31.52(3) 15.07 17.62 19.63 13.07 19.35 Number of shares on December 31 704,902,716 704,902,716 679,336,000 679,336,000 709,214,653 Market capitalisation on December 31 (in billions of €) 19.4 23.7 21.0 12.0 13.7 Average daily volume 4,168,131 2,927,925(4) 2,874,196(4) 3,935,400(2)(4) 3,239,839(4) Net income from recurring operations per share (in €) Net dividend (in €) Yield 1.83 1.08 0.56 1.08 0.56 1.08 0.52 (3.35) 0.17 3.92% 3.22% 3.50% 2.95% (1) Source: NYSE Euronext. (2) Data not adjusted for distribution-in-kind on July 5, 2011 (Dia). (3) Data adjusted for distribution-in-kind on July 5, 2011 (Dia). (4) Average daily volume on Euronext. (5) Subject to approval by the shareholders at the General Meeting of April 23, 2013. Carrefour 2012 share price performance (base 100) in relation to the CAC 40 index, BEFOODR(1) index and Stoxx Europe 600 Retail Index(2) 120 110 100 90 80 70 60 jan. feb. march april may june july august sept. oct. nov. dec. Carrefour Stoxx Europe 600 Retail Index CAC 40 BEFOODR (1) Bloomberg Europe Food Retailers index (BEFOODR): Ahold, Carrefour, Casino, Colruyt, Delhaize, Dia, Sainsbury, Jeronimo Martins, Kesko OYJ, Metro, Morrison, Tesco. (2) Stoxx Europe 600 Retail Index (SXRP): Ahold, Groupe Booker, Carrefour, Casino, Celesio, Colruyt, Debenhams, Delhaize, Dia, Dufry, Galenica, H&M, Inchcape, Inditex, Jeronimo Martins, Kesko, Kingfisher, Marks & Spencer, Metro, Morrison, Next, PPR, Sainsbury, Tesco. 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 59 Share information Principal stock exchange: Euronext Paris Compartment A ISIN code: FR0000120172 Nominal value: €2.50 Main indices: CAC 40, SBF 120, FTSE Eurotop 100, Stoxx Europe 600 Retail Index Ticker symbol: CA Reuters code: CARR.PA Bloomberg code: CA : FP Eligible for PEA/SRD: yes/yes Contacts Carrefour Investor relations 33, avenue Émile Zola TSA 55 555 92649 Boulogne-Billancourt cedex Tel.: +33 (0)1 41 04 26 00 investisseurs@carrefour.com Carrefour Shareholder relations 33, avenue Émile Zola TSA 55 555 92649 Boulogne-Billancourt cedex Toll-free number for shareholders in France: Number for shareholders outside France: +33 (0)1 41 04 26 00 actionnaires@carrefour.com Registered shareholders CACEIS Corporate Trust Investor relations 14 rue Rouget de Lisle 92862 Issy-les-Moulineaux cedex 09 Tel.: +33 (0)1 57 78 34 44 Fax: +33 (0)1 49 08 05 80 ct-contact@caceis.com 0.58(5) 3.00% 115.23 109.82 108.83 92.93 1304091_RA_CARREF_52_72_GB.indd 59 1304091_RA_CARREF_52_72_GB.indd 59 06/05/13 12:30 06/05/13 12:30 OUR PERFORMANCE CSR overview An assessment of extra-financial performance is essential and supplements the analysis of the financial results. It is an indicator of Carrefour’s ability to anticipate and manage risks and opportunities related to its business. The Group, whose overall performance is assessed by rating agencies and SRI investors, maintains an ongoing, transparent dialogue with extra-financial rating agencies, SRI index groups, investors and insurance companies. In 2012, the Carrefour group was included in the leading socially responsible investment indices: Aspi Eurozone (Vigeo – France), DJSI World (Dow Jones – United States), ECPI Ethical Index Euro (ECPI – Italy, Luxembourg), ECPI Ethical Index Global (ECPI – Italy, Luxembourg), Ethibel Excellence Europe (Ethibel – Belgium), Ethibel Excellence Global (Ethibel – Belgium), FTSE4 Good Global (FTSE – Great Britain). FIND MORE INFORMATION ON CSR INDICATORS IN THE 2012 REGISTRATION DOCUMENT AND AT www.carrefour.com Product indicators Number of controlled or ganic food references 2,004 * units Since 1992, Carrefour has been committed to making the largest possible number of organically grown products available to its customers. The Group has developed a wide range of organically grown products based on a production method that helps to protect the environment. Sales (incl. VAT) of “Carr efour Quality Line” products €940 million The “Carrefour Quality Lines” are the result of work with suppliers and contribute to the economic and social development of the regions in which the Group operates. This approach is also based on food safety and traceability from the farm to the fork, for the benefit of customers and consumers. At the end of 2012, Carrefour offered 430* products from these lines around the world. Number of own-brand fair trade products (certified by an independent body based o r LO, ESR, et ecognised criteria: F n c.) 115 * SKUs Fair trade products are primarily distributed in five countries, mainly in Europe, where demand is concentrated. In France, Carrefour is one of the key players in this market, offering 548 items, 115* of which are own-brand products. 1,998 2,004* 908 927 940 1,201 115* 100 77 2010 2011 2012 2010 2011 2012 2010 2011 2012 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 60 1304091_RA_CARREF_52_72_GB.indd 60 1304091_RA_CARREF_52_72_GB.indd 60 06/05/13 12:30 06/05/13 12:30 OUR PERFORMANCE Human resources indicators Employees 364,969* At the end of 2012, Carrefour employed 364,969 people in 12 countries(1), over 29% of whom worked in France. Nearly 93.6% of employees have a permanent work contract and 23.5% work part-time. Carrefour’s workforce consists of 88.7% employees, 10.7% managers, 0.5% directors and 0.1% senior directors. Women in management Employee training 35.7% Carrefour is a company committed to diversity, with women making up 57% of its workforce and nearly 36% of managerial staff, an increase of 5.6% since 2009. The Group has launched initiatives to increase the percentage of women in company management. 5.0* million training hours provided during the year Carrefour’s Human Resources aim to develop the skills of its employees, enabling them to grow within the company. In total, 5.0 million hours of training were provided in 2012, an average of 17.1 hours of training per employee during the year. 371,003 364,969* 19.7 % 33.8 34.0 34.6 35.7 5.5 5.4 5.3 5.0* 23.7 % 56.6 % 2011 2012 Europe Latin America Asia EMPLOYEES BY GEOGRAPHIC REGION Data on a comparable BU basis (100% of 2012 consolidated net sales). Data on a comparable BU basis (84% of 2012 consolidated net sales). Excluded: Brazil hypermarkets and supermarkets. 2009 2010 2011 2012 2009 2010 2011 2012 Disabled employees Rate of internal promotion 2.8% Carrefour is increasing its efforts to promote the employment of people with disabilities in countries where it operates, both through recruitment as well as through working conditions within the company. At the end of 2012, nearly 10,100 disabled employees worked at the Group’s entities. 51.2% With over 120 jobs and an international presence, Carrefour offers a wide range of career paths and real opportunities for mobility. The Group’s goal is to develop internal promotion by ensuring that employee development is based on performance and the ability to take on new responsibilities, along with the company’s needs. More than 50% of managerial staff have been promoted internally. 2.6 2.4 2.6 2.8 48.5 51.2 Data on a comparable BU basis (100% of 2012 consolidated net sales). 2009 2010 2011 2012 2011 2012 * 2012 data verified with a moderate level of assurance by the statutory auditor KPMG Audit in the Registration Document/Carrefour’s Social Responsibility Chapter/Indicators. (1) Argentina, Belgium, Brazil, China, France, India, Italy, Poland, Romania, Spain, Taiwan, Turkey. 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 61 1304091_RA_CARREF_52_72_GB.indd 61 1304091_RA_CARREF_52_72_GB.indd 61 06/05/13 12:30 06/05/13 12:30 OUR PERFORMANCE Environmental indicators Energy consumption (electricity, gas, fuel) in integrated stores Greenhouse gas (GHG) emissions linked to the energy consumption of integrated stores 573 kWh/sq. m of sales area –8.7% COMPARED WITH 2009 Given that the stores’ energy costs total more than half a billion euros per year, reducing energy consumption is one of the cornerstones of the Group’s plan to prevent waste and a key factor in reducing the company’s energy dependence. Carrefour continues to strive to reach its goal of improving energy efficiency by 30% by 2020 (per sq.m. of sales area as compared with 2004). By 2012, the Group had already reduced energy consumption in its stores by 24.6%. 187 eq. kg CO2/sq. m of sales area –10.3% COMPARED WITH 2009 Reducing the environmental impact of its business operations is a priority for Carrefour, which aims to reduce its stores’ CO2 emissions (scopes 1 and 2 of the GHG Protocol) by 40% by 2020 (as compared with 2009) in four European countries (France, Belgium, Spain, Italy). A 24.9% reduction had been achieved by the end of 2012. 628 619 596 573 208 205 192 187 Data on a comparable BU basis (83% of 2012 consolidated net sales). Excluded: Brazil hypermarkets and supermarkets. Data on a comparable BU basis (83% of 2012 consolidated net sales). Excluded: Brazil hypermarkets and supermarkets. 2009 2010 2011 2012 2009 2010 2011 2012 Quantity of refrigerants refilled following leaks 38.1 kg/1,000 sq. m of sales area –35.0% COMPARED WITH 2009 Refrigerants used to run the refrigeration systems represent the second largest source of greenhouse gas emissions generated by the stores’ activity. Carrefour set a goal to reduce the rate of refrigerant leaks and to phase out hydrofluorocarbon-based refrigerants in its new facilities as from 2015, replacing them with natural or more environmentally- friendly refrigerants. Quantity of water consumed 1.72 cu. m/sq. m of sales area –6.8% COMPARED WITH 2009 The activities that consume the largest amount of water in the stores are the food preparation rooms (meat, fish, etc.) and the bathrooms. The stores are gradually implementing solutions to limit their consumption. In 2012, water consumption in the Group’s stores was 16.7 million cu. m. 58.6 47.4 40.0 38.1 1.85 1.82 1.77 1.72 Data on a comparable BU basis (76% of 2012 consolidated net sales). Excluded: Brazil, Argentina, Taiwan hypermarkets and Brazil, Argentina, Turkey supermarkets. Data on a comparable BU basis (92% of 2012 consolidated net sales). Excluded: Belgium and Argentina hypermarkets and supermarkets. 2009 2010 2011 2012 2009 2010 2011 2012 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 62 1304091_RA_CARREF_52_72_GB.indd 62 1304091_RA_CARREF_52_72_GB.indd 62 06/05/13 12:30 06/05/13 12:30 OUR PERFORMANCE Share of recycled waste 63.9% of waste +5.5% COMPARED WITH 2010 Wherever it operates, the Group has a structured organisation for managing its waste for recovery purposes. Cardboard, the primary source of waste in stores, is sorted in all countries. The sorting of other materials (plastic, metal, glass, biowaste, etc.) is organised based on the collection systems and continues to grow each year. Quantity of paper purchased for commercial publications 17.8 kg/sq. m of sales area –11.1% COMPARED WITH 2009 Carrefour has a responsible global sourcing policy and promotes responsible forestry management. For its commercial publications aimed at consumers, the Carrefour group is reducing the weight of its documents and has made a commitment to use paper in Europe made entirely from 100% recycled wood fibres or from forests under certified management. In 2012, 99% of the paper used by the Group for commercial publications was recycled or certified – 100% for Europe. 61.2 62.1 63.9 20.1 19.7 19.9 17.8 Donations included. Data on a comparable BU basis (79% of 2012 consolidated net sales). Excluded: Brazil, Argentina, Turkey hypermarkets and Brazil, Argentina supermarkets. Data on a comparable BU basis (100% of 2012 consolidated net sales). 2010 2011 2012 2009 2010 2011 2012 Number of free disposable plastic checkout bags purchased for the stores 103 million bags –50.0% COMPARED WITH 2009 CO2 emissions per shipping unit 6.9 kg of CO2 per pallet –12.5% COMPARED WITH 2009 Carrefour pledged to gradually stop distributing free disposable plastic checkout bags by the end of 2012. From 2009 to 2012, the number of disposable plastic bags provided free of charge at checkout fell by 50% (per sq. m of sales area). At present, only Argentina, Brazil and Turkey still provide them. At the Group level, more than 1.4 billion disposable plastic checkout bags have been saved since 2009. In 2012, the Group continued to optimise logistics in an effort to limit its environmental impact and reduce its carbon footprint. Carrefour is working with its partners to develop innovative ways to reduce the number of kilometres travelled, favour more environmentally-friendly means of transport and improve the environmental performance of its warehouses. 206 141 122 103 7.8 7.0 7.0 6.9 2009 2010 2011 2012 2009 2010 2011 2012 Data on a comparable BU basis (100% of 2012 consolidated net sales). Data on a comparable BU basis (82% of 2012 consolidated net sales). Excluded: Brazil and India hypermarkets and supermarkets. CO2 emissions calculated based on kilometres travelled (1 litre of fuel consumed = 2.6667 kg of CO2 emitted) to transport merchandise between the warehouses and stores. Shipping unit = 120x80 pallet. 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 63 1304091_RA_CARREF_52_72_GB.indd 63 1304091_RA_CARREF_52_72_GB.indd 63 06/05/13 12:30 06/05/13 12:30 OUR PERFORMANCE Consolidated financial statements The 2011 comparative information presented in this report has been restated to reflect the reclassification of certain operations in accordance with IFRS 5 – Non-current Assets Held for Sale and Discontinued Operations. These restatements are described in note 4 in the 2012 Registration Document – Consolidated financial statements chapter. The consolidated financial statements are presented in millions of euros, rounded to the nearest million. As a result, there may be rounding differences between the amounts reported in the various statements. Consolidated income statement (in millions of euros) Net sales Loyalty programme costs Net sales net of loyalty programme costs Other revenue Total revenue Cost of sales Gross margin from recurring operations Sales, general and administrative expenses Depreciation, amortisation and provisions Recurring operating income Non-recurring income and expenses, net Operating income/(loss) Finance costs and other financial income and expenses, net Finance costs, net Other financial income and expenses, net Income/(loss) before taxes Income tax expense Net income from companies accounted for by the equity method Net income/(loss) from continuing operations Net income from discontinued operations Net income for the year Group share of which net income/(loss) from continuing operations of which net income from discontinued operations Attributable to non-controlling interests 2012 76,789 (662) 76,127 2,333 78,460 (61,523) 16,937 (13,249) (1,548) 2,140 (707) 1,434 (882) (486) (396) 552 (388) 72 235 1,081 1,316 1,233 113 1,120 83 2011(1) % change 76,067 (810) 75,257 2,224 77,481 (60,673) 16,809 (13,060) (1,552) 2,197 (2,337) (140) (705) (462) (243) (845) (931) 64 (1,713) 2,116 404 371 (1,865) 2,237 33 0.9% (18.3%) 1.2% 4.9% 1.3% 1.4% 0.8% 1.4% (0.3%) (2.6%) – – 25.1% 5.2% 63.1% (165.2%) (58.3%) 13.0% (113.7%) – 225.9% 232.2% (106.1%) – 154.5% (1) Restated, see note 4 in the 2012 Registration Document – Consolidated financial statements chapter. 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 64 1304091_RA_CARREF_52_72_GB.indd 64 1304091_RA_CARREF_52_72_GB.indd 64 06/05/13 12:30 06/05/13 12:30 OUR PERFORMANCE Basic earnings/(loss) per share (in euros) Earnings/(loss) from continuing operations per share Earnings from discontinued operations per share Basic earnings per share – Group share Diluted earnings/(loss) per share (in euros) Diluted earnings/(loss) from continuing operations per share Diluted earnings from discontinued operations per share Diluted earnings per share – Group share Calculation details are provided in note 15 in the 2012 Registration Document – Consolidated financial statements chapter. Consolidated statement of comprehensive income (in millions of euros) Net income for the year Effective portion of changes in the fair value of cash flow hedges(2) Changes in the fair value of available-for-sale financial assets(2) Changes in currency translation adjustment(3) Other comprehensive income after tax Total comprehensive income Group share Attributable to non-controlling interests 2012 0.17 1.65 1.81 2012 0.17 1.64 1.81 2011(1) % change (2.83) 3.39 0.56 na na 221.8% 2011(1) % change (2.83) 3.39 0.56 2012 1,316 6 7 (192) (180) 1,136 1,061 75 na na 221.6% 2011(1) 404 (14) (2) (324) (340) 64 72 (9) (1) Restated, see note 4 in the 2012 Registration Document – Consolidated financial statements chapter. (2) Presented net of the tax effect (see note 16 in the 2012 Registration Document – Consolidated financial statements chapter for details). (3) The decrease (€192 million) in the currency translation adjustment in 2012 mainly reflects the decline in the Brazilian and Argentine currencies against the euro during the period. 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 65 1304091_RA_CARREF_52_72_GB.indd 65 1304091_RA_CARREF_52_72_GB.indd 65 06/05/13 12:30 06/05/13 12:30 OUR PERFORMANCE Consolidated statement of financial position ASSETS (in millions of euros) Goodwill Other intangible assets Property and equipment Investment property Investments in companies accounted for by the equity method Other non-current financial assets Consumer credit granted by the financial services companies – long term Deferred tax assets Non-current assets Inventories Trade receivables Consumer credit granted by the financial services companies – short term Other current financial assets Tax receivables Other assets Cash and cash equivalents Assets held for sale(2) Current assets TOTAL ASSETS SHAREHOLDERS’ EQUITY AND LIABILITIES (in millions of euros) Share capital Consolidated reserves and income for the year Shareholders’ equity – Group share Shareholders’ equity attributable to non-controlling interests Total shareholders’ equity Long-term borrowings Provisions Consumer credit financing – long term Deferred tax liabilities Non-current liabilities Short-term borrowings Suppliers and other creditors Consumer credit financing – short term Tax payables Other payables Liabilities related to assets held for sale(2) Current liabilities TOTAL SHAREHOLDERS’ EQUITY AND LIABILITIES 2012 8,608 801 11,509 513 384 1,125 2,360 752 26,052 5,658 2,144 3,286 352 520 795 6,573 465 19,793 45,844 2012 1,773 5,714 7,487 874 8,361 8,983 4,000 1,966 580 15,528 2,263 12,925 3,032 1,040 2,422 273 21,955 45,844 2011(1) 8,740 966 13,771 507 280 1,433 2,236 745 28,676 6,848 2,782 3,384 911 468 969 3,849 44 19,254 47,931 2011(1) 1,698 4,919 6,617 1,009 7,627 9,513 3,680 419 586 14,198 2,159 15,362 4,482 1,319 2,785 0 26,106 47,931 (1) Restated, see note 4 in the 2012 Registration Document – Consolidated financial statements chapter. (2) Assets held for sale and related liabilities correspond: – in 2011, to shares in the Altis Group which was accounted for by the equity method in 2010 (see note 3 in the 2012 Registration Document – Consolidated financial statements chapter), and certain assets in Italy; – in 2012, to assets and liabilities related to Indonesia (see note 4 in the 2012 Registration Document – Consolidated financial statements chapter) and Singapore, and certain assets in France and Italy. 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 66 1304091_RA_CARREF_52_72_GB.indd 66 1304091_RA_CARREF_52_72_GB.indd 66 06/05/13 12:30 06/05/13 12:30 OUR PERFORMANCE Consolidated statement of cash flows (in millions of euros) INCOME/(LOSS) BEFORE TAXES CASH FLOWS FROM OPERATING ACTIVITIES Taxes Depreciation and amortisation expense Capital (gains)/losses on sales of assets Change in provisions and impairment Dividends received from companies accounted for by the equity method Impact of discontinued operations Cash flow from operations Change in working capital requirement(2) Impact of discontinued operations Net cash from operating activities (excluding financial services companies) Change in consumer credit granted by the financial services companies Impact of discontinued operations Net cash from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Acquisitions of property and equipment and intangible assets Acquisitions of financial assets Acquisitions of subsidiaries(3) Proceeds from the disposal of subsidiaries(4) Proceeds from the disposal of property and equipment and intangible assets Proceeds from the disposal of investments in non-consolidated companies Change in amounts receivable from and due to suppliers of fixed assets Investments net of disposals Other cash flows from investing activities Impact of discontinued operations(5) Net cash from/(used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from share issues to non-controlling interests Acquisitions and disposals of investments without any change of control(6) Dividends paid by Carrefour (parent company) Dividends paid by consolidated companies to non-controlling interests Change in treasury stock and other equity instruments Change in current financial assets Issuance of bonds Repayments of bonds Other changes in borrowings Impact of discontinued operations Net cash from/(used in) financing activities Net change in cash and cash equivalents before the effect of changes in exchange rates Effect of changes in exchange rates Net change in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 2012 552 (543) 1,610 (186) 719 30 48 2,228 (42) (219) 1,967 7 1,973 (1,547) (34) (175) 154 234 5 (166) (1,530) 34 1,833 337 6 (9) (137) (121) 0 687 1,250 (996) (255) 122 546 2,856 (132) 2,724 3,849 6,573 2011(1) (845) (690) 1,644 (175) 2,420 26 196 2,577 (240) 11 2,348 (233) 3 2,118 (2,119) (30) (41) 7 488 21 191 (1,483) (61) 1,146 (398) 12 (13) (708) (99) (126) 853 500 (1,442) (270) 123 (1,170) 551 27 578 3,271 3,849 (1) Restated, see note 4 in the 2012 Registration Document – Consolidated financial statements chapter. (2) See note 38 in the 2012 Registration Document – Consolidated financial statements chapter for details. (3) Including impact of the Guyenne et Gascogne tender offer (cost of additional shares giving the Group control of the business) for €96 million. (4) Disposal of Altis shares for €153 million. (5) Including the sale price of operations in Colombia and Malaysia, for a total of €2,053 million. (6) This item corresponds: a. For €144 million, to the buyout of minority interests in Sogara and Centros Comerciales Carrefour, both already controlled by the Group, in connection with the Guyenne et Gascogne acquisition. b. For €200 million to the buyout of the Group’s financial services partner in Brazil, followed by the sale of an interest in this business to Itaú Unibanco. c. For €66 million, to the buyout of minority interests in Grands Magasins Labruyère. 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 67 1304091_RA_CARREF_52_72_GB.indd 67 1304091_RA_CARREF_52_72_GB.indd 67 06/05/13 12:30 06/05/13 12:30 OUR PERFORMANCE Consolidated statement of changes in shareholders’ equity Translation reserve Fair value reserve(1) Other consolidated reserves and net income for the year 778 (55) 7,162 Share capital 1,698 Shareholders’ equity – Group share Non- controlling interests Total shareholders’ equity Other comprehensive income after tax Total comprehensive income 0 (320) (320) (6) (6) (in millions of euros) Shareholders’ equity at December 31, 2010 Net income for the year Share-based payments Treasury stock (net of tax) 2010 dividend payment Distribution of Dia shares(2) Change in capital and additional paid-in capital Effect of changes in scope of consolidation and other movements(3) Shareholders’ equity at December 31, 2011 Net income for the year Other comprehensive income after tax(4) Total comprehensive income Share-based payments Treasury stock (net of tax) 2011 dividend payment(5) Change in capital and additional paid-in capital(6) Effect of changes in scope of consolidation and other movements(7) Shareholders’ equity at December 31, 2012 371 27 398 29 (73) (708) (2,230) (56) 4,521 1,233 1,233 9 979 33 (42) (9) (105) 36 107 1,009 83 (8) 75 9,584 371 (299) 72 29 (73) (708) (2,230) 0 (56) 6,618 1,233 (354) 880 9 0 (178) (137) (121) 155 (72) 188 (72) 6 (95) 874 10,563 404 (340) 64 29 (73) (813) (2,230) 36 51 7,627 1,316 (362) 955 9 0 (257) 194 (167) 8 361 1,698 458 (61) (365) (365) 12 12 0 41 33 1,773 93 (49) 5,669 7,487 (1)This item comprises: – the effective portion of changes in the fair value of cash flow hedges; – cumulative changes in the fair value of available-for-sale financial assets. (2) Impact of the distribution of Dia shares on July 5, 2011. (3) Including the impact of changes in financial liabilities for put options granted to non-controlling interests in subsidiaries. (4) The detailed breakdown of other comprehensive income is presented after the income statement. The translation reserve was also reduced by cumulative exchange differences on operations in Colombia and Malaysia that were recycled to the income statement for €182 million following the disposal of these operations during 2012. (5) The 2011 dividend totaling €348 million was paid in cash for €137 million and in new shares for €211 million (corresponding to the aggregate par value of the new shares for €41 million and premiums for €170 million). (6) The cash offer for Guyenne et Gascogne with a stock alternative (see note 3 in the 2012 Registration Document – Consolidated financial statements chapter) led to the issue of €13.3 million new shares for a total of €188 million including premiums. (7) This line includes the effect of: a. the buyout of minority interests in Sogara and Centros Comerciales Carrefour in connection with the Guyenne et Gascogne acquisition, for a negative €263 million; b. the buyout of the Group’s financial services partner in Brazil, followed by the sale of an interest in this business to Itaú Unibanco, for a positive €112 million. 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 68 1304091_RA_CARREF_52_72_GB.indd 68 1304091_RA_CARREF_52_72_GB.indd 68 06/05/13 12:30 06/05/13 12:30 governance working for you means defining and observing clear, transparent operating rules to ensure effective and responsible action 1304091_RA_CARREF_52_72_GB.indd 69 1304091_RA_CARREF_52_72_GB.indd 69 06/05/13 12:30 06/05/13 12:30 GOVERNANCE The Board of Directors The specialised committees The Board of Directors is a collective body that represents all shareholders and acts in the company’s interest in all circumstances. The Board ensures that its membership is balanced, its ability, experience and representativeness serve the company and its operating procedures are appropriate in order to act in the company’s interest and fulfil its missions. The Board approves the company’s strategy as proposed by the Chairman and Chief Executive Officer, and ensures its implementation. Except for the powers attributed to the Shareholders’ Meeting and in accordance with the company’s business object, the Board deals with all questions in company interest and resolves through its deliberations the issues that are raised. Georges Plassat Chairman and Chief Executive Officer Board appointment: May 23, 2012 Ratification and renewal: June 18, 2012 Term of office expires: Shareholders’ Meeting convened to approve the financial statements for the fiscal year ending December 31, 2014 Sébastien Bazin – Vice-Chairman Board appointment: July 28, 2008 Renewal: May 4, 2010 Renewal proposed during the Shareholders’ Meeting of April 23, 2013 Amaury de Seze* Senior Independent Director Board appointment: July 28, 2008 Renewal: June 21, 2011 Term of office expires: Shareholders’ Meeting convened to approve the financial statements for the fiscal year ending December 31, 2013 Bernard Arnault – Director Board appointment: July 28, 2008 Renewal: June 21, 2011 Term of office expires: Shareholders’ Meeting convened to approve the financial statements for the fiscal year ending December 31, 2013 Nicolas Bazire – Director Board appointment: July 28, 2008 Renewal: June 18, 2012 Term of office expires: Shareholders’ Meeting convened to approve the financial statements for the fiscal year ending December 31, 2014 Jean-Laurent Bonnafé – Director Board appointment: July 28, 2008 Renewal: June 21, 2011 Term of office expires: Shareholders’ Meeting convened to approve the financial statements for the fiscal year ending December 31, 2013 Thierry Breton* – Director Board appointment: July 28, 2008 Renewal: May 4, 2010 Renewal proposed during the Shareholders’ Meeting of April 23, 2013 René Brillet* – Director Board appointment: July 28, 2008 Renewal : June 21, 2011 Term of office expires: Shareholders’ Meeting convened to approve the financial statements for the fiscal year ending December 31, 2013 Charles Edelstenne* – Director Board appointment: July 28, 2008 Renewal: May 4, 2010 Renewal proposed during the Shareholders’ Meeting of April 23, 2013 Diane Labruyère-Cuilleret* – Director Board appointment: June 18, 2012 Term of office expires: Shareholders’ Meeting convened to approve the financial statements for the fiscal year ending December 31, 2014 Mathilde Lemoine* – Director Board appointment: May 20, 2011 Renewal : June 18, 2012 Term of office expires: Shareholders’ Meeting convened to approve the financial statements for the fiscal year ending December 31, 2014 Bertrand de Montesquiou* – Director Board appointment: June 18, 2012 Term of office expires: Shareholders’ Meeting convened to approve the financial statements for the fiscal year ending December 31, 2014 Georges Ralli* – Director Board appointment: June 18, 2012 Term of office expires: Shareholders’ Meeting convened to approve the financial statements for the fiscal year ending December 31, 2014 Anne-Claire Taittinger* – Director Board appointment: July 28, 2008 Renewal: May 4, 2010 Renewal proposed during the Shareholders’ Meeting of April 23, 2013 Robert Halley – Honorary Chairman * independent director To take into account the nature and characteristics of the company’s activities, the Committees of the Board are: • the Accounts Committee; • the Remuneration Committee; • the Nominations Committee. The Accounts Committee Chairman: Georges Ralli* Members: René Brillet*, Mathilde Lemoine*, Sébastien Bazin The Committee’s duties notably include monitoring the process of preparing financial information, the effectiveness of the internal control and risk management systems, the auditing of the annual and consolidated financial statements by the statutory auditors and the independence of the statutory auditors. The Remuneration Committee Chairman: Thierry Breton* Members: René Brillet*, Sébastien Bazin The Remuneration Committee is particularly responsible for reviewing all issues relating to the personal status of corporate officers, including remuneration, pension benefits, company subscription, purchase options and provisions and free shares governing the departure of members from the company’s management and representative bodies. It reviews the terms, amounts and allocation basis of stock-option plans. It is informed of the remuneration policy for top executives who are not corporate officers. The Nominations Committee Chairman: Bertrand de Montesquiou* Members: Diane Labruyère*, Anne-Claire Taittinger*, Nicolas Bazire In the event of the Chairman and Chief Executive Officer’s resignation or death or non-renewal of his term of office, the committee is responsible for making proposals to the Board of Directors regarding the Chairman’s appointment. In consultation with the Chairman, it is also charged with recommending candidates for Chief Executive Officer and, if applicable, Chief Operating Officer to the Board of Directors. It is also responsible, together with the Chairman and Chief Executive Officer, for reviewing preparatory measures for the transition to the corporate officers’ new term of office and the selection of new directors. It makes recommendations to the Board of Directors, together with Chairman and Chief Executive Officer, on the appointment of committee chairmen and members. It is also charged with assessing Directors’ independence and reporting its findings to the Board of Directors. It also assists the Board of Directors in adapting the Company’s corporate governance practices and assessing their operation. 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 70 1304091_RA_CARREF_52_72_GB.indd 70 1304091_RA_CARREF_52_72_GB.indd 70 06/05/13 12:30 06/05/13 12:30 GOVERNANCE The Management team Country and Region Management Georges Plassat Chairman and Chief Executive Officer Pierre-Jean Sivignon Chief Financial Officer Jérôme Bédier General Secretary Jean-Christophe Deslarzes Chief Human Resources and Organisation Officer Éric Legros Executive Director Group Merchandise Marie-Noëlle Brouaux Executive Communications Director Jean Anthoine Executive Director Poland Jean-Noël Bironneau Executive Director India Pascal Clouzard Executive Director Spain Guillaume de Colonges Executive Director Turkey Luiz Fazzio Executive Director Brazil Daniel Fernandez Executive Director Argentina Patrick Ganaye Executive Director Taiwan Thierry Garnier Executive Director China-Taiwan Thomas Hübner Executive Director Europe (excl. France) Gérard Lavinay Executive Director Belgium François Melchior de Polignac Executive Director Romania Noël Prioux Executive Director France Stéphane Thouin Executive Director International Partnerships Éric Uzan* Executive Director Italy * from April 1, 2013 FIND INFORMATION ON GOVERNANCE IN THE REGISTRATION DOCUMENT, AVAILABLE ON THE WEBSITE www.carrefour.com 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 71 1304091_RA_CARREF_52_72_GB.indd 71 1304091_RA_CARREF_52_72_GB.indd 71 06/05/13 12:30 06/05/13 12:30 ADRESSES Contacts Carrefour group France Head Office 33, avenue Émile-Zola TSA 55 555 92649 Boulogne-Billancourt Cedex Tel.: +33 (0)1 41 04 26 00 Fax: +33 (0)1 41 04 26 01 Investor Relations investisseurs@carrefour.com Shareholder Relations Toll-free number for shareholders in France : Number for shareholders outside France: +33 (0)1 41 04 26 00 actionnaires@carrefour.com Registered Shareholders CACEIS Corporate Trust Investor Relations 14, rue Rouget-de-Lisle 92862 Issy-les-Moulineaux Cedex 09 Tel.: +33 (0)1 57 78 34 44 Fax: +33 (0)1 49 08 05 80 ct-contact@caceis.com Carrefour France 102, rue de Paris – BP 83 91300 Massy Tel.: +33 (0)1 69 19 30 00 Fax: +33 (0)1 69 19 30 99 Europe Belgium Carrefour Belgium 20, avenue des Olympiades 1140 Bruxelles Tel.: +32 2 729 21 11 Fax: +32 2 729 20 38 Italy Carrefour Italia Via Caldera, 21 20153 Milano Tel.: +39 02 48 25 1 Fax: +39 02 48 20 23 25 Poland Carrefour Polska Ul. Targowa 72 03-734 Warszawa Tel.: +48 22 517 21 10 Fax: +48 22 517 22 01 Romania Carrefour Romania Blvd. Timisoara nr. 26z, sector 6 Cladirea Anchor Plaza – Etaj 8 061331 Bucuresti ¸ Tel.: +40 21 206 74 00 Fax: +40 21 206 74 52 Asia China Carrefour China 25F, Shanghai Stock Exchange Bldg., No.528, Pudong Nan Road 200120 Pudong, Shanghai Tel.: +86 21 3878 4500 Fax: +86 21 6881 5232 India Carrefour W C&C India Pvt Ltd 2nd floor, Park Centra Sector 30 – Village Silokhra Gurgaon 122001 – Haryana Tel.: +91 124 4752000 Fax: +91 124 4752005 Taiwan Carrefour Taiwan 5F, No. 136. Daye Road, Beitou Dist, Taipei City Tel.: +886 2 2898 1999 Fax: +886 2 2898 2633 Spain Centros Comerciales Carrefour Calle Campezo, 16 Polígono de las Mercedes 28022 Madrid Tel.: +34 91 301 89 00 Fax: +34 91 333 18 36 Turkey Carrefour SA Turkiye Dudullu Asfalti n° 1 Kucukbakkalkoy Mahallesi Kadikoy / Istanbul 34750 Tel.: +90 216 655 00 00 Fax: +90 216 655 00 50 Latin America Argentina Carrefour Argentina Cuyo 3367 – 1640 Martínez Provincia de Buenos Aires Tel.: +54 11 40 03 70 00 Fax: +54 11 40 03 77 22 Brazil Carrefour Commercio e industria Rua George Eastman, n° 213 CEP 056690-000 São Paulo Tel.: +55 11 37 79 60 00 Fax: +55 11 37 79 66 94 2012 ANNUAL ACTIVITY AND RESPONSIBLE COMMITMENT REPORT 72 1304091_RA_CARREF_52_72_GB.indd 72 1304091_RA_CARREF_52_72_GB.indd 72 06/05/13 12:30 06/05/13 12:30 CONTENTS Interview with the Chairman and Chief Executive Offi cer page 2 Get the latest news on Carrefour group’s website www.carrefour.com Discover our other publications our stores Our priorities A multi-local Group Hypermarkets Supermarkets Convenience stores Cash & carry and hypercash stores Multichannel retail Our CSR commitment page 6 our products Our priorities Fresh produce Local products Everyday products Non-food products Carrefour’s trade services Our CSR commitment page 24 our employees Our priorities Develop the passion for retail Promoting employee confi dence Our CSR commitment our performance Our priorities Financial overview Stock market overview CSR overview Consolidated fi nancial statements page 40 page 52 Governance page 69 2012 Registration Document 2012 Carrefour Foundation annual report 2013 Shareholder’s guide (in French version) Conception: Carrefour group Communications Department Creation and production: Translation: Photo credits: Carrefour library, Lionel Barbe, Elisa Desmares, Christophe Gay / Skyzone Le Group, Gilles Leimdorfer / Interlinks Image, Ludovic Marin / REA, Roger Mark, David Pell Multimédia, all rights reserved. Paper: The Carrefour group has made a commitment to responsible management of its paper purchases. The paper used in this report is FSC (Forest Stewardship Council) certifi ed. This certification attests to compliance with a set of internationally recognised forest management principles and criteria. The aim of FSC is to promote environmentally responsible, socially beneficial and economically viable management of the Earth’s forest. Printing: This document was produced by Frazier, FSC and ISO 140001 environmental management systems (EMS) certified. Frazier has received the Imprim’Vert brand, meeting requirements for hazardous waste management, secure storage of hazardous materials and toxic products exclusion. 1304091_Couverture_RA_GB.indd 75 1304091_Couverture_RA_GB.indd 75 06/05/13 11:34 06/05/13 11:34 t r o p e r t n e m t i i l m m o c e b s n o p s e r d n a y t i v i t c a l a u n n a 2 1 0 2 www.carrefour.com Société Anonyme with capital of €1,773,036,632.50 Head offi ce : 33, avenue Émile Zola – 92100 Boulogne-Billancourt – France 652 014 051 RCS Nanterre 1304091_Couverture_RA_GB.indd 74 1304091_Couverture_RA_GB.indd 74 06/05/13 11:34 06/05/13 11:34 2012 annual activity and responsible commitment report