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Carrefour reports growth in recurring operating income and in net income for the first half 2013

  Carrefour reports growth in recurring operating income and in net income for
  the first half 2013

Key H1 2013 figures

  *Sales ex. VAT of €36.5bn, up 1.4% at constant exchange rates. Taking into
    account the impact of exchange rates, the variation was -0.8%.
  *Recurring operating income of €766m, up 7.7% at constant exchange rates.
    Taking into account the impact of exchange rates, recurring operating
    income is up 4.9%. Growth in recurring operating income in France and in
    Latin America at constant exchange rates. Southern Europe was impacted by
    the economic environment.
  *Net income, Group share, rose to €902m.
  *Stronger financial structure and improved liquidity position, with net
    debt of €5.9 billion, a €3.7 billion improvement compared to 30 June 2012.

Business Wire

BOULOGNE-BILLANCOURT, France -- August 29, 2013

Regulatory News:

Carrefour (Paris:CA):

                                                            Var. at    Var. at

                                   H1 2012                  constant   current
(€m)                              pro forma  H1 2013 ^1           
                                                            exch.      exch.

                                                            rates      rates
Net Sales                         36,777     36,464      +1.4%     -0.8%
Recurring Operating Income        1,479      1,482       +2.4%     +0.2%
before D&A (EBITDA)
EBITDA margin                     4.0%       4.1%                 
Recurring Operating Income (ROI)  730        766         +7.7%     +4.9%
Recurring operating margin         2.0%        2.1%
Non-recurring income and           -21         489
expenses
Net income from continuing        231        519                  x2.2
operations, Group share
Net income, Group share           3          902                  +€0.9bn
                                                               
Net debt at close                 9,629      5,894                -€3.7bn

^1 The H1 2013 social and consolidated accounts were approved by the Carrefour
Board of Directors, which met on August 28, 2013. The accounts were audited by
the Group’s auditors.

Figures for 2013 and the comparative 2012 information presented in this
document take into account the classification of certain activities in
accordance with IFRS 5 – Assets held for sale and discontinued operations
(Greece, Singapore, Colombia, Malaysia, Indonesia and Turkey) as well as the
retrospective application of the amended standard IAS 19 – Employee benefits.

H1 2013 highlights

  *Continued reorganization and strengthening of international partnerships:

       *In Turkey, the Group reorganized its partnership with Sabanci
         Holding, transforming the governance of their CarrefourSA joint
         venture. The transaction was approved by the relevant authorities in
         July. Carrefour now holds 46.2% of CarrefourSA.
       *In May, Carrefour and Majid Al Futtaim Holding reorganized and
         strengthened their partnership: Carrefour sold its 25% stake in Majid
         Al Futtaim Hypermarkets for €530 million to its regional partner. The
         franchise partnership has been reinforced, extended in time and
         expanded in scope to the Middle East, North Africa and Central Asia.
       *Also in May, Carrefour and CFAO announced the signing of a memorandum
         of understanding to form a joint venture that will be 55% owned by
         CFAO and 45% by Carrefour. This venture will have exclusive
         distribution rights to develop various store formats in Western and
         Central Africa.

  *Significant improvement in the Group’s liquidity position:

       *New bond issue of €1 billion in May (1.75% coupon, maturity 2019).
       *Bond buyback for €1.3 billion in June on 2014, 2015 and 2016
         maturities.
       *Renewal of syndicated loans for an amount of €4.15 billion.

H1 2013 performance by zone

           Net sales                             Recurring operating income
                              Var. at    Var. at                  Var. at    Var. at
            H1                                     H1
            2012     H1       constant   current   2012    H1     constant   current
(€m)        pro     2013                               2013           
            forma             exch.      exch.     pro            exch.      exch.
                                         rates     forma                     rates
                              rates                               rates
France      16,995  16,947  -0.3%     -0.3%     275    482   +75.4%    +75.4%
Other       9,605    9,176    -4.6%      -4.5%     153     36     -76.4%     -76.4%
Europe
Latin       6,879    6,953    +13.3%     +1.1%     231     217    +3.1%      -6.0%
America
Asia        3,298    3,388    +2.7%      +2.7%     105     91     -13.4%     -12.9%
Global                                      -34    -61            
functions
Total       36,777  36,464  +1.4%     -0.8%     730    766   +7.7%     +4.9%
                                                                             

France

In France, sales were up 1.0% ex calendar in the first half and broadly stable
at -0.3% on a reported basis. Commercial margin was up as a result of action
plans. SG&A costs were stable. Recurring operating income rose 75.4% to €482
million with good profitability in all formats.

Other European countries

In Europe, sales were down -4.5% at current exchange rates, reflecting the
persistently difficult economic environment in Southern Europe. However,
commercial margin was resilient, thanks to our constant focus on price
positioning. SG&A costs were stable. Recurring operating income amounted to
€36 million, impacted by Italy.

Latin America

At constant exchange rates, sales growth in Latin America continued (+13.3%).
The currency effect was strongly unfavorable in the first half. The commercial
margin held up well. Profitability in Brazil continued to grow. In Argentina,
the business was resilient as a regulatory price freeze and wage increases
impacted profitability.

Asia

Sales in Asia increased by 2.7%. During the second quarter, sales in China and
Taiwan returned to positive trends. The commercial margin held up well.
Recurring operating income was impacted by wage inflation and continued
expansion in China.

Analysis of H1 2013 results

Income statement

  *Net sales increased by 1.4% at constant exchange rates vs. H1 2012. At
    current exchange rates, they were down 0.8%.
  *Recurring operating income rose by 7.7% at constant exchange rates and by
    4.9% at current exchange rates to reach €766m, with:

       *Commercial margin rising to 21.9% of net sales vs. 21.5% in H1 2012.
       *SG&A costs under control.

  *The Group’s operating income increased by 77%, at €1,254m, vs. H1 2012,
    after taking into account net non-recurring income of €489m.
  *Net income, Group share, stood at €902m compared to the €3m recorded in H1
    2012.

       *Net income from recurring operations, Group share rose significantly
         to €519m, reflecting the following:

            *Financial expenses of €402m (up by €75m), including an
              exceptional charge of €119m linked to the bond buyback program.
              Interest expenses related to debt decreased by €40m.
            *An effective tax rate of 34.9%.

       *Discontinued operations, Group share, stood at €383m, essentially due
         to the net positive effect of the Group’s refocusing.

Cash flow and debt

  *Free cash flow improved by €243m compared to H1 2012:

       *Excluding the €119m exceptional expense related to the bond buy-back,
         cash flow from operations was broadly stable.
       *The change in working capital requirement was stable.
       *Capital expenditure continued, amounting to €620m, up 11% vs. H1
         2012.
       *The cash-out related to discontinued activities decreased by €256m.

  *The Group’s refocusing, mainly the disposals of our stakes in MAF
    Hypermarkets and in Indonesia, generated a cash inflow of €980m.
  *The net cash outflow related to dividend payments amounted to €108m, as
    72% of our dividend was paid in shares.
  *The Group’s financial structure strengthened with net financial debt
    amounting to €5.9bn, an improvement of €3.7bn compared to June 30th, 2012.

Continuation of our 2013 priorities

Amid toughening consumption trends worldwide and exchange rate volatility,
Carrefour is staying the course. The priorities announced at the annual
results presentation in March are reaffirmed.

  *Development of the multi-local, multi-format model

       *France: Continued action plans in all formats, with priority given to
         improvement of the offer and of price perception, store
         refurbishments, Drive roll-out and multi-channel development
       *Europe: Adaptation of the offer and costs in the face of a tough
         economic environment
       *Emerging markets:  Continued expansion in Latin America and Asia
       *New momentum in the development of real estate assets

  *Decentralization and empowerment

       *Simplify structures and decision-making process
       *Re-empower stores
       *Place the client at the core of the business

  *Continued strict financial discipline

       *Stable dividend payout policy
       *Controlled increase of capital expenditure (expected at between
         €2.2bn and €2.3bn in 2013)
       *Control of working capital

APPENDICES

Consolidated Income Statement

(€m)                                            H1 2012    H1 2013  Change
                                                 pro forma
Sales, net of taxes                             36,777     36,464   -0.8%
Sales, net of taxes and loyalty                 36,406     36,177   -0.6%
Other revenues                                  1,156      1,184    +2.4%
Total Revenues                                  37,563     37,361   -0.5%
Cost of sales                                   -29,654    -29,374  -0.9%
Commercial income                                7,908       7,986     +1.0%
SG&A                                            -6,429     -6,504   +1.2%
Recurring operating incomes before D&A          1,479      1,482    +0.2%
(EBITDA)
Depreciation & amortization                     -749       -717     -4.3%
Recurring operating income (ROI)                730        766      +4.9%
Non-current income and expenses                 -21        489      
Operating income                                709        1,254    +77.0%
Financial expenses                               -327        -402      +22.9%
Profit before tax                                382         853       +123.3%
Income tax                                       -117        -298      +154.5%
Companies accounted for by the equity method    23         25       +7.5%
Net income from continuing operations           288        580      +101.3%
Net income from discontinued operations         -276       376      
Net income                                      13         955      
Of which Net income – Group share                3           902
Of which net income from continuing              231         519
operations, Group share
Of which net income from discontinued           -229       383
operations, Group share
Of which Net income – Non-Controlling            10          53
Interests (NCI)
Of which net income from continuing              57          61
operations, NCI
Of which net income from discontinued           -47        -8
operations, NCI
                                                                       

Main ratios

                                           H1 2012     H1 2013
                                                         pro forma
Commercial margin                           21.5%       21.9%
Recurring operating income /                             2.0%          2.1%
Net sales
Operating income / Net sales                1.9%        3.4%
                                                                       

Consolidated Balance Sheet

(€m)                                        December 31, 2012  June 30, 2013
ASSETS                                                        
Intangible assets                            9,409               9,131
Tangible assets                              11,509              10,966
Financial investments                        1,509               1,418
Deferred tax assets                          854                 854
Investment properties                        513                 422
Consumer credit from financial-services     2,360              2,372
companies – long term
Non-current assets                          26,154             25,164
Inventories                                  5,658               5,595
Trade receivables                            2,144               2,390
Consumer credit from financial-services      3,286               2,968
companies – short term
Tax receivables                              520                 936
Other receivables                            789                 946
Current financial assets                     352                 409
Cash and cash equivalents                   6,573              3,834
Current assets                              19,332             17,079
Assets held for sale^1                      465                739
TOTAL                                       45,941             42,981
                                                                 
LIABILITIES
Shareholders equity, Group share             7,302               7,838
Minority interests in consolidated          868                767
companies
Shareholders’ equity                        8,170              8,605
Deferred tax liabilities                     580                 532
Provisions for contingencies                 4,287               3,608
Borrowing – long term                        8,983               8,496
Bank loans refinancing – long term          1,966              1,781
Non current liabilities                     15,816             14,416
Borrowings – short term                      2,263               1,640
Trade payables                               12,925              11,219
Bank loans refinancing – short term          3,032               2,895
Tax payables & others                        1,040               1,090
Other debts                                 2,422              2,634
Current liabilities                         21,682             19,478
Liabilities related to assets held for      273                482
sale^2
TOTAL                                       45,941             42,981
                                                                 

^1 Assets held for sale and related liabilities correspond:
- as of December 31, 2012 to assets and liabilities related to Indonesia and
Singapore, and certain assets in Italy
- as of June 30, 2013 to assets and liabilities related to Turkey, and certain
assets in France

Consolidated Cash Flow Statement

(€m)                                                      H1 2012    H1 2013
                                                           pro forma
NET DEBT OPENING                                          -6,911     -4,320
Gross cash flow (ex. discontinued activities)             828        676
Change in working capital                                  -2,415      -2,441
Impact of discontinued activities                         -189       -15
Cash flow from operations (ex. financial services)        -1,776     -1,780
Capital expenditures                                       -559        -620
Asset disposals (business related)                         -342        -92
Change in net payables to fixed asset suppliers            78          54
Impact of discontinued activities                         -104       -22
Free Cash Flow                                            -2,703     -2,460
Financial investments                                      -153        -35
Proceeds from disposals of subsidiaries and from other     155         539
tangible & intangible assets
Others                                                     -59         92
Impact of discontinued activities                         -5         441
Cash Flow after investments                               -2,764     -1,423
Dividends/ capital increase                                -49         -164
Acquisition and disposal of investments without change     47          -11
of control
Treasury shares                                            0           0
Others                                                     10          -8
Impact of discontinued activities                          56          35
Consumer credit impact                                    -19        -2
NET DEBT CLOSING                                          -9,629     -5,894
                                                                       

Changes in Shareholder Equity

                                   Total            Shareholders’   Minority
(€m)                              shareholders’   equity,        interests
                                   equity           Group share
At December 31, 2012              8,170           7,302          868
Net income for the first half     955             902            53
2012 dividend                     -167            -108           -59
Capital increase / premium        3               0              3
Change in translation adjustment  -195            -183           -12
Impact of scope changes and       -162            -76            -86
others
At June 30, 2013                  8,605           7,838          767
                                                                

Consolidated Income Statement pro forma 2012

(€m)                                                          2012
                                                              pro forma
Sales, net of taxes                                           75,701
Sales, net of taxes and loyalty                               75,048
Other revenues                                                2,309
Total Revenues                                                77,357
Cost of sales                                                 -60,685
Commercial income                                             16,672
SG&A                                                          -13,033
Recurring operating incomes before D&A (EBITDA)               3,639
Depreciation & amortization                                   -1,520
Recurring operating income (ROI)                              2,119
Non-current income and expenses                               -660
Operating income                                              1,460
Financial expenses                                            -879
Profit before tax                                             581
Income tax                                                    -385
Companies accounted for by the equity method                  72
Net income from continuing operations                         268
Net income from discontinued operations                       1,087
Net income                                                    1,351
Of which Net income – Group share                             1,267
Of which net income from continuing operations, Group share   145
Of which net income from discontinued operations, Group share 1,122
Of which Net income – Non-Controlling Interests (NCI)         83
Of which net income from continuing operations, NCI           123
Of which net income from discontinued operations, NCI         -40
                                                              

Definitions

Commercial income

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

Recurring Operating Income Before Depreciation and Amortization (EBITDA)

Recurring Operating Income Before Depreciation and Amortization (EBITDA) is
defined as the difference between the commercial income and sales, general and
administrative expenses. It excludes non-recurring items as defined below.

Recurring Operating Income (ROI)

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

Operating Income (EBIT)

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

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

Free Cash Flow

Free cash flow is defined as the difference between funds generated by
operations, the variation of working capital requirements and capital
expenditures.

Disclaimer

This press release contains both historical and forward-looking statements.
These forward-looking statements are based on Carrefour management's current
views and assumptions. Such statements are not guarantees of future
performance of the Group. Actual results or performances may differ materially
from those in such forward-looking statements as a result of a number of risks
and uncertainties, including but not limited to the risks described in the
documents filed with the Autorité des marchés financiers as part of the
regulated information disclosure requirements and available on Carrefour's
website (www.carrefour.com), and in particular the Annual Report (Document de
référence). These documents are also available in English language on the
company's website. Investors may obtain a copy of these documents from
Carrefour free of charge. Carrefour does not assume any obligation to update
or revise any of these forward-looking statements in the future.

Contact:

Investor relations :
Réginald Gillet, Alessandra Girolami, Matthew Mellin, +33 (0)1 41 04 26 00
or
Shareholder relations:
Céline Blandineau, 0 805 902 902 (toll-free in France)
or
Group Communications, +33 (0)1 41 04 26 17