2013 Consolidated Financial Statements - Consolidated Financial...CONSOLIDATED FINANCIAL STATEMENTS Year Ended December 31, 2013 Contents Consolidated Income Statement 2 Consolidated Statement of Comprehensive Income 3

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  • CONSOLIDATED FINANCIAL

    STATEMENTS Year Ended December 31, 2013

    Contents Consolidated Income Statement 2 Consolidated Statement of Comprehensive Income 3 Consolidated Statement of Financial Position 4 Consolidated Statement of Cash Flows 5 Consolidated Statement of Changes in Shareholders Equity 6 Notes to the Consolidated Financial Statements 7

    Note 1: Basis of preparation of the consolidated financial statements 7 Note 2: Summary of significant accounting policies 9 Note 3: Significant events of the year 23 Note 4: Restatement of comparative information 25 Note 5: Segment information 30 Notes 6 to 14: Notes to the consolidated income statement 32 Note 15: Earnings per share 37 Note 16: Other comprehensive income 38 Notes 17 to 37: Notes to the consolidated statement of financial position 39 Note 38: Change in working capital requirement 71 Note 39: Off-balance sheet commitments 71 Note 40: Employee information 72 Note 41: Related parties 73 Note 42: Management compensation 73 Note 43: Subsequent events 74 Note 44: Fees paid to the Auditors 74 Note 45: Scope of consolidation 75

    This is a free translation in English of the Carrefour Groups 2013 Consolidated Financial Statements issued in the French language, provided solely for the convenience of English speaking users.

  • Consolidated Financial Statements, Year Ended December 31, 2013

    2

    The 2012 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, and the retrospective application of IAS 19R Employee Benefits. These restatements are described in Note 4. 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) Notes 2013 2012(1) % change

    Net sales 6 74,888 75,673 (1.0%)

    Loyalty program cos ts (588) (653) (9.9%)

    Net sales net of loyalty program costs 74,299 75,021 (1.0%)

    Other revenue 7 2,375 2,309 2.9%

    Total revenue 76,675 77,330 (0.8%)

    Cost of s ales 8 (59,828) (60,659) (1.4%)

    Gross margin from recurring operations 16,847 16,671 1.1%

    Sales , general and adm inis trative expenses 9 (13,178) (13,028) 1.1%

    Depreciation, am ortization and provis ions 10 (1,432) (1,518) (5.7%)

    Recurring operating income 2,238 2,124 5.3%

    Non-recurring incom e and expens es , net 11 144 (660) -

    Operating income 2,382 1,465 62.6%

    Finance cos ts and other financial incom e and expenses , net 12 (722) (883) (18.3%)

    Finance costs, net (428) (488) (12.4%)

    Other financial incom e and expenses, net (294) (395) (25.5%)

    Income before taxes 1,660 581 185.5%

    Incom e tax expense 13 (631) (380) 65.9%

    Net incom e from com panies accounted for by the equity m ethod 30 72 (58.8%)

    Net income from continuing operations 1,058 273 287.7%

    Net incom e from dis continued operations 14 306 1,069 (71.4%)

    Net income for the year 1,364 1,342 1.7%

    Group share 1,263 1,259 0.3%

    of which net incom e from continuing operations 949 150 531.7%

    of which net incom e from discontinued operations 314 1,109 (71.6%)

    Attributable to non-controlling interests 101 83 21.6%

    (1) Restated, see Note 4

    Basic earnings/(loss) per share, in 2013 2012 (1) % changeEarnings /(loss ) from continuing operations per share 1.37 0.22 naEarnings from discontinued operations per share 0.45 1.62 naBas ic earnings per share Group s hare 1.82 1.84 (1.4%)

    Diluted earnings/(loss) per share, in 2013 2012 (1) % changeDiluted earnings /(loss ) from continuing operations per share 1.37 0.22 naDiluted earnings from discontinued operations per share 0.45 1.62 naDiluted earnings per s hare Group s hare 1.82 1.84 (1.4%)

    (1) Restated

    Calculation details are provided in Note 15.

  • Consolidated Financial Statements, Year Ended December 31, 2013

    3

    CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (in millions) 2013 2012 (1)

    Net income for the year 1,364 1,342

    Effective portion of changes in the fair value of cash flow hedges (2) 39 6

    Changes in the fair value of available-for-sale financial assets(2) 5 7

    Exchange differences on translating foreign operations(3) (455) (192)

    Items that may be reclassified subsequently to prof it or loss (411) (180)

    Unrecognized actuarial gains and losses on defined benefit plans(2) 25 (168)

    Items that will not be reclassified to profit or lo ss 25 (168)

    Other comprehensive income (386) (348)

    Total comprehensive income 979 994

    Group share 914 923

    Attributable to non-controlling interests 64 72

    (1) Restated, see Note 4. (2) Presented net of the tax effect (see Note 16 for details). (3) The change in exchange differences on translating foreign operations mainly reflects the decline in the Brazilian and

    Argentine currencies.

  • Consolidated Financial Statements, Year Ended December 31, 2013

    4

    CONSOLIDATED STATEMENT OF FINANCIAL POSITION

    ASSETS

    (in m illions )Notes December 31,

    2013December 31,

    2012 (1)

    Goodwill 17 8,277 8,608

    17 767 801

    18 11,109 11,509

    19 313 513

    20 496 384

    20 1,146 1,125

    33 2,381 2,360

    21 931 919

    25,419 26,219

    Inventories 22 5,738 5,658

    23 2,213 2,144

    33 3,221 3,286

    24 359 352

    715 520

    25 841 789

    26 4,757 6,573

    301 465

    Current assets 18,145 19,787

    TOTAL ASSETS 43,564 46,006

    SHAREHOLDERS EQUITY AND LIABILITIES

    (in m illions )Notes

    December 31, 2013

    December 31,

    2012 (1)

    27 1,810 1,773

    6,034 5,408

    7,844 7,181

    754 866

    8,597 8,047

    32 7,550 8,983 Provis ions 29 3,618 4,475

    33 1,765 1,966

    21 521 580

    13,454 16,003

    32 1,683 2,263

    34 12,854 12,925

    33 3,145 3,032

    1,045 1,040

    35 2,763 2,422

    24 273

    21,513 21,955

    43,564 46,006

    Current liabilities

    TOTAL SHAREHOLDERS EQUITY AND LIABILITIES

    Short-term borrowings

    Suppliers and other creditors

    Cons um er credit financing s hort-term

    Tax payables

    Other payables

    Liabilities related to ass ets held for s ale (2)

    Shareholders equity attributable to non-controlling interes ts

    Total shareholders' equity

    Long-term borrowings

    Cons um er credit financing long-term

    Deferred tax liabilities

    Non-current liabilities

    Other ass ets

    Cash and cash equivalents

    As sets held for sale (2)

    Share capital

    Cons olidated res erves and incom e for the year

    Shareholders equity Group share

    Deferred tax as sets

    Non-current assets

    Trade receivables

    Cons um er credit granted by the financial services com panies short-term

    Other current financial as sets

    Tax receivables

    Other intangible ass ets

    Property and equipm ent

    Inves tm ent property

    Inves tm ents in com panies accounted for by the equity m ethod

    Other non-current financial ass ets

    Cons um er credit granted by the financial services com panies long term

    (1) Restated, see Note 4. (2) Assets held for sale and related liabilities correspond: - At December 31, 2012, to the assets and liabilities associated with operations in Indonesia and Singapore, and certain

    assets in France and Italy. - At December 31, 2013, essentially to the assets concerned by the real estate transaction described in Note 3.6.

  • Consolidated Financial Statements, Year Ended December 31, 2013

    5

    CONSOLIDATED STATEMENT OF CASH FLOWS

    (in millions) 2013 2012 (1)

    INCOME BEFORE TAXES 1,660 581

    CASH FLOW S FROM OPERATING ACTIVITIES

    Taxes (1,039) (543)

    Depreciation and amortization expense 1,483 1,580

    Capital (gains)/losses on sales of assets (384) (187)

    Change in provis ions and impairment (140) 695

    Finance costs, net 428 488

    Dividends received from companies accounted for by the equity method 30 30

    Impact of discontinued operations 1 65

    Cash flow from opera tions 2,039 2,708

    Change in working capital requirement (2) (284) (29)

    Impact of discontinued operations (27) (226)

    Net cash from operating activities (excluding finan cia l services companies) 1,728 2,453

    Change in consumer credit granted by the financial services companies (52) 7

    Impact of discontinued operations 0 0

    Net cash from operating activities 1,675 2,459

    CASH FLOW S FROM INVESTING ACTIVITIES

    Acquisitions of property and equipment and intangible assets (2,159) (1,504)

    Acquisitions of financial assets (3) (157) (34)

    Acquisitions of subsidiaries (4) (33) (175)

    Proceeds from the disposal of subsidiaries (5) 526 154

    Proceeds from the disposal of property and equipment and intangible assets 117 232

    Proceeds from the disposal of investments in non-consolidated companies 16 5

    Change in amounts receivable from and due to suppliers of fixed assets 371 (171)

    Investments net of disposa ls (1,319) (1,493)

    Other cash flows from investing activities 2 33

    Impact of discontinued operations (6) 462 1,797

    Net cash from/(used in) investing activities (855) 337

    CASH FLOW S FROM FINANCING ACTIVITIES

    Proceeds from share issues to non-controlling interests 3 6

    Acquisitions and disposals of investments without any change of control (11) (9)

    Dividends paid by Carrefour (parent company) (108) (137)

    Dividends paid by consolidated companies to non-controlling interests (101) (121)

    Change in treasury stock and other equity instruments 0 0

    Change in current financial assets (47) 687

    Issuance of bonds 1,000 1,250

    Repayments of bonds (2,519) (996)

    Net interests paid (487) (499)

    Other changes in borrowings (274) (241)

    Impact of discontinued operations 54 119

    Net cash from/(used in) financing activities (2,489) 60

    Net change in cash and cash equivalents before the e ffect of changes in exchange ra tes (1,669) 2,856

    Effect of changes in exchange rates (147) (132)

    Net change in cash and cash equivalents (1,816) 2,724

    Cash and cash equiva lents a t beginning of year 6,573 3,849

    Cash and cash equiva lents a t end of year 4,757 6,573 (1) Restated, see Note 4. (2) See Note 38 for details. (3) The change in this item is due to the introduction of new regulations governing shopping cards in China, which led to

    the exclusion from cash and cash equivalents of compulsory bank deposits corresponding to part of the shopping card receivables.

    (4) At December 31, 2012, this item included the impact of the Guyenne & Gascogne tender offer (cost of additional shares giving the Group control of the business) for 96 million.

    (5) Disposals of subsidiaries correspond in 2013 to the sale of Majid Al Futtaim Hypermarkets shares for 526 million and in 2012 to the sale of Altis shares for 153 million.

    (6) Including, in 2012, the proceeds from the sale of operations in Colombia and Malaysia, for a total of 2,053 million. In 2013, this item mainly includes the proceeds from the sale of operations in Indonesia.

  • Consolidated Financial Statements, Year Ended December 31, 2013

    6

    CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

    (in millions) Share capita lTransla tion

    reserveFa ir va lue reserve (1)

    Other consolidated

    reserves and net income

    for the year

    Shareholders equity

    Group share

    Non-controlling inte rests

    Tota l shareholde rs

    equity

    Shareholers' equity a t December 31, 2011 458 4,521 6,617 1,009 7,627

    Application of IAS 19R (166) (166) (5) (172)

    Shareholders' equity a t January 1, 2012 1,698 458 (61) 4,355 6,451 1,004 7,455

    Net income for the year (2) 1,259 1,259 83 1,342

    Other comprehensive income after tax (2) (365) 12 (165) (518) (11) (529)

    Tota l comprehensive income 0 (365) 12 1,094 741 72 813

    Share-based payments 9 9 9Treasury stock (net of tax) 0 0 0

    2011 divident payment (3) 41 (178) (137) (121) (257)

    Change in capital and additional paid-in capital (4) 33 155 188 6 194

    Effect of changes in scope of consolidation and other

    movements (5)(72) (72) (95) (167)

    Shareholders' equity a t December 31, 2012 1,773 93 (4 9) 5,364 7,181 866 8,047

    Net income for the year 1,263 1,263 101 1,364Other comprehensive income after tax (407) 37 22 (349) (37) (386)

    Tota l comprehensive income 0 (407) 37 1,285 914 64 979

    Share-based payments 2 2 2Treasury stock (net of tax) 0 0 0

    2012 dividend payment (6) 37 (145) (108) (101) (209)Change in capital and additional paid-in capital 0 3 3Effect of changes in scope of consolidation and other

    movements (7)(146) (146) (79) (225)

    Shareholders' equity a t December 31, 2013 1,810 (314) (13) 6,360 7,844 754 8,597

    (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) Restated to take into account the effect of the change of method resulting from application of IAS 19R (see Note 4.2)

    (3) 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).

    (4) The cash offer for Guyenne & Gascogne with a stock alternative led to the issue of 13.3 million new shares for a total of 188 million including premiums.

    (5) This line includes the effect of:

    (a) The buyout of non-controlling interests in Sogara and Centros Comerciales Carrefour in connection

    with the Guyenne & Gascogne acquisition, for a negative 263 million. (b) The buyout of the Groups partner in Brazil, followed by the sale of an interest in this business to Ita

    Unibanco, for a positive 112 million.

    (6) The 2012 dividend totaling 398 million was paid in cash for 108 million and in new shares for 290 million (corresponding to the aggregate par value of the new shares for 37 million and premiums for 253 million).

    (7) Changes in scope of consolidation and other movements correspond primarily to the buyout of non-controlling interests in Indonesia (72 million) and in France (112 million).

  • Consolidated Financial Statements, Year Ended December 31, 2013

    7

    NOTE 1: BASIS OF PREPARATION OF THE CONSOLIDATED FI NANCIAL STATEMENTS 1.1 Accounting principles and statement of compliance The consolidated financial statements for the year ended December 31, 2013 were approved for publication by the Board of Directors on March 4, 2014. They will be submitted to shareholders for final approval at the Annual General Meeting on April 15, 2014. Carrefour (the Company) is domiciled in France. The consolidated financial statements for the year ended December 31, 2013 comprise the financial statements of the Company and its subsidiaries (together the Group) and the Groups share of the profits and losses, assets and liabilities of associated and jointly controlled companies. The presentation currency of the consolidated financial statements is the euro, which is the Companys functional currency. In accordance with European Regulation (EC) 1606/2002 dated July 19, 2002, the 2013 consolidated financial statements have been prepared in compliance with the international accounting standards adopted for use in the European Union as of December 31, 2013 and applicable at that date, with 2012 comparative information prepared using the same standards. International accounting sta...

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