The Carrefour group: a world leader in distribution An international retailer promoting the growth of local economics

1959:Carrefour was established. 1960:The first Carrefour store opened and was an immediate success. 1963:Carrefour established its first hypermarket. 1970:The company went public. In the 1970s-80s:International Growth

In the 1990s:Carrefour continued growth In the late 1990s and Beyond: Strategic Acquisitions In 2008: Continuing growth in a challenging environment

Retail Industry The exchange of food and weapon Traders Shops Sto res(Specia lty shops) Department store Shopping Centers and Malls

Emerging Markets China India Russia

China Largest City Second and third tier cities Until 1990s, foreign retailers began to be allowed in.

Wal-Mart: The Announcement of Openness Metro: Planning to Corporate with Local Government Tesco: A Successful entry

Fierce competition with the traditional trade. Business management of Retail Industry in emerging markets. The counterfeit problem. The transportation cost

Recruiting local people Approaching the market Innovating

Market leader Brand recognition Focus on competitive prices

Strong growth potential in Asia New stores Agreements with Coop Atlantique

Win-win target: both in France, and all subsidiaries Encourage local economy

Examples

Local Specialties Labors: wages and hours

Economic Social Environmental

Unique logisticsUtility Diversified transportability Use of geographic resources Good traceability Automated pallet traceability system Alleviate environmental impact A. Rail B. River C. Truck load

Retain the original architecture Proper sites to build Traffic jam vs. public safety Urban Rural

SKILLED people Fair ranking management Training and motivation Men and women Local and expatriate staff

Tesco Metro Wal-Mart

The humanistic care Korean Market The first movement among the top The fourth largest global retailer The most potential competitor

Metro Cash & Carry: No credit account NO.1 in German Retailer Market Media Markt, Saturn: Electronic Retailers Real (including Extra), Galeria Kaufhof Experiences in self-service wholesale

The largest one in the world’s retail industry In 1990, beating Sears and K-Mart The most significant reason for customers’ shopping there----Low Price

The 100 th store in China in 2007 Quick Expansion---from metropolis to central and western of China. Local Product Sourcing Flexibility and Creation

Experienced Employees Local specialists vs. Expatriate staff Political involvement Political inclination caused to profit crisis (China)

Improving company's image Making more effort on global expansion Making more effort on global expansion

On track to attain 2008 objectives Continuing and deepening action plan Carrefour well positioned to continue growing in a challenging environment Essentially a food retailer Multi-format Increasingly international Solid debt profile

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