http://www.morningstar.com/earnings/49416482-carrefour-ca-q4-2012.aspx

Carrefour CA
Q4 2012 Earnings Call Transcript

Transcript Call Date 03/07/2013

Georges Plassat - Chairman and CEO: So good morning and welcome. I will try and repeat the same thing again. Pierre-Jean Sivignon and myself, this is the second time that we have been going through this exercise together; the presentation of our annual accounts because he is going to make the presentation of everything that is essential and useful to the understanding of our results in terms of figures. After that, I will try to add something, something more dynamic perhaps in terms of our professional content so that you can understand where we are going and after that we will go to the usual question and answer session and we will try and answer your questions together depending on their nature. So once again thank you for being here with us and I will hand over straight away to Pierre-Jean Sivignon.

Pierre-Jean Sivignon - CFO: Good morning everybody. Before we look in detail at our financial results for 2012, I wanted to make a few introductory remarks and I wanted to draw your attention to certain numbers of significant operations which have had an impact on the period and which have also had an impact on the profile of the Group as a whole.

During the year 2012, the Group refocused its activities, so just to concentrate its resources on its multi format strategy in the mature countries, where we have a leadership position and in the emerging countries which have great potential for the growth. Two of these operations took place during the first half year and the three others during the last quarter of 2012.

During the first half year, we announced the reorganization of our partnership with the Marinopoulos Group in Greece. Carrefour disposed of whole of its 50% holding in our common subsidiary with the Marinopoulos Group and its now Marinopoulos which becomes the exclusive franchisee for the Carrefour banner in Greece, Cyprus, Bulgaria and Albania and some other Balkan countries too. This transaction was approved by the competent authorities on the 8th August last year.

We’ve also sold our activity in Singapore and we had two stores there and we took the decision to close those stores when the leases ran out because we considered the growth potential was inadequate. We’ve also disposed of our business in Colombia. This was in October last. This was sold to Cencosud, the Chilean group for a value of EUR2 billion. This transaction was approved at the end of November 2012.

Furthermore in October last, we sold our business in Malaysia to the Japanese group, Aeon. The disposal of the operations bought in EUR250 million and that transaction was finalized once again in October 2012.

Finally, we announced the sale of our 60% holding in Carrefour Indonesia last November. We sold this to our local partner, the CT Corp Group for a value of EUR525 million. The Carrefour banner remains present in Indonesia, because the CT Corp becomes exclusive franchisee in this country. The transaction was approved by the local authorities in mid-January of 2013.

In accordance with IFRS 5 standards, income and expenses from the discontinued activities in these five countries have been reclassified as net income from discontinued operations in 2012. In order to make comparisons easier, we have restated the income statement for 2011 on a like-for-like basis.

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