Carrefour

Earnings Release • Jul 31, 2014

2014 FIRST&HALF RESULTS:" CONTINUED GROWTH'

Organic!sales!growth!of!4.3% Increase!in!Recurring!Operating!Income!of +13.8% Strong!increase!in!adjusted!net!income,!Group!share!of +16.7%

Strong profit!growth!at!constant!exchange!rates!in!first!half 2014

• Net%sales%of%€35.9bn, up%+4.3%1 ,%highest%organic%growth%rate%in%five%years
• Growth%in%Recurring%Operating%Income:%up%+13.8%2 to%€833m
• Rise%in%net%income,%Group%share,%adjusted%for%exceptional%items:%up%+16.7%3 to%€274m
• Increase in%gross%cash%flow of%+41.6%%to €1.3bn (+1.9% excluding%exceptionals)

Europe:!Growth!of!+7.8%!in!Recurring!Operating!Income! France:%New%half of improved profitability

• Further%organic%sales%growth:%+1.9%
• Traffic%up%in%all formats
• Growth%in%Recurring%Operating%Income for%the%4th consecutive%half:%+6.9%

Other%European%Countries:%Further improvement in%profitability

• Overall%stability%in sales with%growth in%Spain,%Belgium%and%Romania
• Recurring%Operating%Income up +19.3%

Emerging!markets:!Growth!of!+19.2%!in!Recurring!Operating!Income!

• Excellent%sales%performance%and%increased profitability in%Brazil and%Argentina
• Stable sales%in%Asia

Investments up,!two!tactical!acquisitions

• Continued% investments% at €818m,% in% line% with% our% catchZup,% remodeling% and% network% expansion% policy
• Signing of%agreements to%acquire the%activities%of%DIA%France%and%53%supermarkets in%northern%Italy, reinforcing%our%multiformat%strategy

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¹ Ex%petrol%ex%calendar.

² At%constant%exchange%rates.

³ Adjusted%net%income:%See%in%appendix.

First&half 2014 key\$figures1

(€M)	H1%2013% restated	H1!2014	Variation at%% constant exch.%rates	Variation at current% exch. rates
Net!sales	36,446	35,870	+3.4%	P1.6%
Net%sales%ex%petrol	32,480	32,119	+4.3%	Z1.1%
Recurring%Operating%Income%before%D&A%(EBITDA)	1,488	1,515	+6.6%	+1.8%
EBITDA%Margin	4.1%	4.2%
Recurring!Operating!Income	772	833	+13.8%	+7.9%
Recurring%Operating%Margin	2.1%	2.3%
Adjusted!net!income,!Group!share	235	274		+16.7%
Net!debt at!close	5,894	7,324		+€1.4bn

Breakdown* by* zone* of* first% half% 2014% net sales% and% recurring( operating)income

Net!sales			Recurring!Operating!Income
(€M)	H1%2013% restated	H1!2014	Organic& growth2	Variation% at%current% exch.%rates	H1%2013% restated	H1!2014	Variation& at&constant& exch.&rates	Variation% at%current% exch.%rates
France	16,947	17,005	+1.9%	+0.3%	482	515	+6.9%	+6.9%
Other%Europe	9,176	9,173	G0.1%	0.0%	36	43	+19.3%	+19.1%
Europe	26,123	26,178	+1.1%	+0.2%	518	558	+7.8%	+7.7%
Latin%America	6,953	6,454	+16.8%	G7.2%	217	247	+33.2%	+13.4%
Asia	3,370	3,237	+0.2%	G3.9%	98	83	=11.9%	G15.2%
Emerging!markets	10,323	9,691	+11.2%	=6.1%	315	330	+19.2%	+4.8%
Global%functions					Z61	P55	+9.6%	+10.2%
Total	36,446	35,870	+4.3%	G1.6%	772	833	+13.8%	+7.9%

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¹ The% H1% 2014% social% and% consolidated% accounts% were% approved% by% the% Carrefour% Board% of% Directors,% which% met% on% July% 30th,% 2014.% The% accounts% were% submitted%to%a%limited%review%by%the%Group's auditors.

Figures% for% the% first% half% 2014%and% the% comparative% first% half% 2013%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.

² Excluding%petrol%and%calendar.

Further&growth&in&Recurring&Operating&Income& (+13.8%&at&constant& exchange(rates)(and(in(adjusted(net#income,#Group#share (+16.7%)

Income!statement

In%H1%2014,%Carrefour recorded%solid%net%sales growth.%Net!sales were%up%4.3%%on%an%organic basis.%At% current% exchange% rates,% sales% were% down% 1.6%.% Europe% and% Emerging% Markets% both recorded sales growth:%+1.1%%and%+11.2% respectively.

Recurring! Operating! Income! grew% once% again and% reached% €833m, up% +13.8%% at% constant% exchange% rates (+7.9%%at%current exchange%rates), driven by%both%Europe%(+7.8%)%and%Emerging%Markets%(+19.2%).

In% France,%recurring% operating% income was €515m, up% +6.9%,% an% increase% of% +20 basis% points% (bp) in% gross margin,%which reached%3.0%%of%sales.%This%performance is%mainly%explained%by%an%improved gross% margin%as%a% result%of decreased shrinkage%and% cost% savings% from%logistics. Profitability was%good%in%all% formats.

In% Other! European! countries,% recurring% operating% income stood% at €43m,% up% +19.3%% at% constant% currencies.%Operating%margin%was%slightly%up%at 0.5% of%sales. While%maintaining constant%attention% to% price% positioning,% the% gross margin% improved. In% Spain% and% in% Belgium,% profitability% increased.% Italy% continued%rolling%out%its%action%plans and%intensified%its%commercial%investments linked% to% the% football% world%cup in%the%half.

Strong% growth in Latin! America continued% with%recurring% operating% income of% €247m,% up% +33.2%% at% constant%exchange% rates.%Operating margin% stood%at% 3.8%,% up%+70bp.%This%increase% reflected%excellent% likeZforZlike%sales%in%Brazil%and%Argentina and%a%better%gross%margin.

In% Asia,% recurring% operating% income was% €83m.% Gross margin% held% up% well.% Amid% a% more% frugal% consumption%environment%and%a decrease% in% shopping% card%activity,% China continued% its%expansion% to% build%up%its%longZterm%position.%Taiwan%improved%its%performance.

Net nonPrecurring! income stood% at% €264m% and% mainly% reflected the% capital% gain% linked% to% the% contribution% of% assets% to% property% company Carmila. Net income! from! continuing! operations,! Group! share,%was%€474m%and%reflected:

• A%decrease of%€131m in%financial!expenses, reflecting the%better%cost%of%funding%and%the €119m nonZ recurring expense linked%to%the%bond buyback%in%the%first%half 2013
• A%stable effective!tax!rate

Net%income,%Group%share,%was%€441m.%

Adjusted!net!income,!Group!share, stood!at!€274m,!an!increase!of!+16.7%.

Cash!flow!and!debt

Cash!flow!from!operations rose%by%+41.6%.%Adjusted for%exceptional%items%and%discontinued%operations,% it%increased% by%+1.9%,%in%line%with% the%increase%in%EBITDA,% to% €1,252m (vs% €1,229m%in% the% first% half% of% 2013).

Carrefour% continued to% invest% in% remodeling% and% expansion with% capital! expenditure of% €818m.% The% change%in%payables%to%fixed%asset suppliers%led%to a%use%of €382m. Change!in!working!capital excluding% exceptional%items, stable%versus%the%prior%year,%was%a%cashZout%of%€2,488m.

Free!cash!flow was%Z€2,412m, reflecting%the%seasonality%of%the%business.

Acquisitions! and! disposals led% to% a% net% total% cashZout% of% €186m,% partly explained% by% the% creation% of% Carmila.%The%cash%dividend%paid%by%Carrefour%was%a%limited%€149m,%as%65%%of%shareholders%opted%for%a% dividend%payment%in%shares.%Financial!expenses decreased by%€27m%to%€192m.%

Net financial!debt as%at%June%30th,%2014%was%€7.3bn.

H1#2014#highlights

• In%April,%creation!of!Carmila,%a%company%dedicated%to%enhancing%the%value%of%the%shopping%centers% adjacent% to%Carrefour%hypermarkets%in%France,%Spain%and%Italy%and%in%which%Carrefour%holds%a%42%% stake.%
• Acquisition%in%June%of DIA!France,%comprising more%than%800%stores%totaling%nearly%550,000%m²%and% 2.3% billion% euros% of% sales% under% banners% in% 2013.% This% transaction,% which% remains subject% to% the% approval% of% the% relevant% antitrust% authorities,% should% contribute% to% the% growth% of% Carrefour's% multiformat store%network%in%France.
• Acquisition! of! 53! supermarkets located! in! northern! Italy in% June,% with% a% combined%sales% area% of% 58,000% m²% and% net% sales% of% around% 300% million% euros% in% 2013.% This% acquisition% will% strengthen% Carrefour's%multiformat%strategy in%Italy.%The%completion%of%the%transaction%is%subject%to%the%approval% of%the%relevant%antitrust%authorities.

Staying the\$course\$on\$2014 priorities

Carrefour%is%staying%the%course.%The%priorities%announced%at%the%annual%results%presentation%in%March%are% reaffirmed:

• Continue! action! plans! in! all! countries! aiming% at% continuous% improvement% of% our offer% and% price% image%to%enhance%the%shopping%experience,%notably%in%our three%largest%markets,%France,%Brazil%and% Spain but%also%in%Italy
• Accelerate!multiPchannel!rollPout!
• o Revamp%and%convergence%of%our%websites%in%France,%gradual%broadening%of%our%offer
• o Continued%development%of%click%&%collect
• Continue!structural!projects including:
• o Revamp%of%the%supply%chain%in%France
• o IT%rationalization
• Enhance!the!attractiveness!of!our!sites!in%France,%Spain%and%Italy%by%capitalizing%on%the%creation%of% Carmila
• Accelerate!store!remodelings!and!relaunch!multiPformat!expansion
• o Investments%of%between%€2.4bn%and%€2.5bn%in%2014
• o Intensification%of%the%remodeling%plan
• o Continued%longZterm%growth%in%emerging%markets,%particularly%in%China%and%Brazil
• Maintain!strict!financial!discipline

Contacts

Investor!Relations Réginald%Gillet,%Alessandra%Girolami,%Matthew%Mellin Tel :%+33%(0)1%41%04%26%00 Shareholder Relations! Tel%:%0%805%902%902%(tollZfree%n°%in%France) Group!Communications Tel%:%+33%(0)1%41%04%26%17

APPENDIX

Consolidated+Income+Statement

(€M)	H1%2013% restated	H1!2014	Variation
Sales,!net!of!taxes	36,446	35,870	P1.6%
Sales,!net!of!taxes!and!loyalty	36,159	35,564	P1.6%
Other%revenues	1,184	1,192	+0.7%
Total!Revenues	37,342	36,757	P1.6%
Cost%of%sales	Z29,357	Z28,686	Z2.3%
Commercial%income	7,986	8,071	+1.1%
SG&A	Z6,498	Z6,556	+0.9%
Recurring!operating!incomes!before!D&A!(EBITDA)	1,488	1,515	+1.8%
Depreciation%&%amortization	Z716	Z682	Z4.7%
Recurring!operating!income	772	833	+7.9%
NonZcurrent%income%and%expenses	489	264	Z45.9%
Operating!income	1,261	1,097	P13.0%
Financial%expenses	Z401	Z269	Z32.8%
Profit%before%tax	860	828	Z3.8%
Income%tax	Z298	Z300	+0.6%
Companies%accounted%for%by%the%equity%method	25	9	Z62.7%
Net!income!from!continuing!operations	588	537	P8.5%
Net%income%from%discontinued%operations	368	Z33
Net!income	955	504	P47.2%
Of!which!Net!income!– Group!share	902	441
Of%which%net%income%from%continuing%operations,%Group%share	526	474
Of%which%net%income%from%discontinued%operations,%Group%share	376	Z33
Of!which!Net!income!–!!NonPControlling!Interests!(NCI)	53	63
Of%which%net%income%from%continuing%operations,%NCI	61	63
Of%which%net%income%from%discontinued%operations,%NCI	P8	0

Calculation*of*adjusted*net*income,*Group*share

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(€M)	H1%2013 restated	H1!2014	Variation
Net!income!from!continuing!operations,!Group!share	526	474	P9.8%
Restatement%for%non%recurring%income%and%expenses%(before%tax)	Z489	Z264
Restatement%for%exceptional%items%in%net%financial%expenses	139	11
Tax%impact1	70	40
Restatement%on%share%of%income%from%minorities%and%companies%consolidated% by%the%equity%method	Z11	13
Adjusted!net!income,!Group!share!	235	274	+16.7%

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

Main%ratios

	H1%2013 restated	H1!2014
Commercial%margin	21.9%	22.5%
Recurring%operating%income%/%Net%sales	2.1%	2.3%
Operating%income%/%Net%sales	3.5%	3.1%

Consolidated+Balance+Sheet

(€M)	June%30th, 2013	June!30th, 2014
ASSETS
Intangible%assets	9,131	9,108
Tangible%assets	10,966	11,227
Financial%investments	1,418	2,541
Deferred%tax%assets	854	944
Investment%properties	422	319
Consumer%credit%from%financialZservices%companies%– long%term	2,372	2,413
NonPcurrent!assets	25,164	26,553
Inventories	5,595	5,902
Trade%receivables	2,390	2,281
Consumer%credit%from%financialZservices%companies%– short%term	2,968	3,373
Tax%receivables	936	735
Other%receivables	946	1,041
Current%financial%assets	409	361
Cash%and%cash%equivalents	3,834	2,030
Current!assets	17,079	15,723
Assets!held!for!sale	739	12
TOTAL	42,981	42,288
LIABILITIES
Shareholders%equity,%Group%share	7,838	8,158
Minority%interests%in%consolidated%companies	767	783
Shareholders'!equity	8,605	8,941
Deferred%tax%liabilities	532	537
Provisions%for%contingencies	3,608	3,734
Borrowing%– long%term	8,496	6,626
Bank%loans%refinancing%– long%term%	1,781	1,954
Non!current!liabilities	14,416	12,851
Borrowings%– short%term	1,640	3,089
Trade%payables	11,219	10,868
Bank%loans%refinancing%– short%term	2,895	3,079
Tax%payables%&%others	1,090	1,156
Other%debts	2,634	2,298
Current!liabilities	19,478	20,490
Liabilities!related!to!assets!held!for!sale	482	7
TOTAL	42,981	42,288

Consolidated+Cash+Flow+Statement

(€M)	H1!2014
NET!DEBT!OPENING	P 4,320	P 4,117
Gross%cash%flow%(ex.%discontinued%activities)	907	1,284
Change%in%working%capital	Z 2,440	Z 2,571
Impact%of%discontinued%activities	Z 28	0
Cash!flow!from!operations!(ex.!financial!services)	P 1,561	P 1,287
Capital%expenditures	Z 620	Z 818
Change%in%net%payables%to%fixed%asset%suppliers%(inc.%receivables)	Z 91	Z 378
Asset%disposals%(business%related)	54	75
Impact%of%discontinued%activities	Z 23	Z 5
Free!Cash!Flow	P 2,240	P 2,412
Financial%investments	Z 35	Z 268
Proceeds%from%disposals%of%subsidiaries%and%from%other%tangible%&%intangible%assets	539	82
Others	91	Z68
Impact%of%discontinued%activities	441	0
Cash!Flow!after!investments	P 1,204	P2,667
Dividends/%capital%increase	Z 164	Z 198
Acquisition%and%disposal%of%investments%without%change%of%control	Z 11	Z 122
Cost%of%net%financial%debt	Z 219	Z192
Others	Z 8	37
Impact%of%discontinued%activities	35	Z16
Consumer%credit%impact	P2	Z50
NET!DEBT!CLOSING	P 5,894	P 7,324

Changes(in(Shareholder(Equity

(€M)	Total!shareholders'! equity	Shareholders'!equity,! Group!share	Minority!interests
At!December!31,!2013	8,597	7,844	754
Total%comprehensive%income%for%H1%2014	560	483	77
2013%dividend	Z199	Z149	Z50
Impact%of%scope%changes%and%others	Z18	Z20	2
At!June!30, 2014	8,940	8,158	783

Definitions

Organic!sales!growth

Like%for%like%sales%growth%plus%net%openings%over%the%past%twelve%months,%including%temporary%store%closures.

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 rate gains% and% losses% on% goods%purchased.

Recurring!Operating!Income!Before!Depreciation!and!Amortization!(EBITDA)

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

Recurring!Operating!Income

Recurring% Operating% Income% is% defined% as% the% difference% between% 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%nonZrecurring%items

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

Free!Cash!Flow

Free%cash%flow%is%defined%as%the%difference%between%funds%generated%by%operations%(before%net%interest%costs),%the variation%of%working%capital%requirements%and%capital%expenditures.

Disclaimer

This%press%release%contains%both%historical%and%forwardZlooking%statements.%These%forwardZlooking%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% forwardZ 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%forwardZlooking%statements%in%the%future.