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2014 Registration Document
Comments on 2014 fiscal year
4
Parent company financial review
4.6
Parent company financial review
4.6.1
Activities and results
As the Carrefour group’s holding company, Carrefour, SA manages
a portfolio of shares in French and foreign subsidiaries and affiliates.
The Company’s main source of revenue - reported under “Other income”
in the income statement – consists of costs rebilled to other Group
entities. In 2014, other income amounted to €366 million.
Financial income, net amounted to €1,906 million in 2014 compared
with €1,198 million in 2013. The €708 million increase can be explained
as follows:
■
the recognition of a €309 million merger surplus from the Actis merger;
■
financial provision charges decreased by a net €374 million, reflecting:
■
€326 million in net reversals of provisions for impairment of shares
in subsidiaries and affiliates versus net additions of €292 million
in 2013 (positive impact of €618 million),
■
An increase in net charges to provisions for impairment of treasury
stock, due to the fall in Carrefour’s share price between 2013
and 2014 (negative impact of €185 million),
■
An increase in net charges to provisions for other financial risks
(negative impact of €60 million);
■
dividend income from subsidiaries was lower, with a negative impact
of €129 million;
■
interest expense on intra-group and external borrowings decreased
year-on-year, with a positive impact of €154 million.
Non-recurring items represented net income of €2,387 million in 2014
and consisted mainly of gains and losses on disposals of shares in
subsidiaries and affiliates and results of impairment tests on goodwill.
■
Impairment tests on intangible assets:
A €1,600 million provision reversal was recognized following impairment
tests performed on goodwill.
■
Disposals of shares in subsidiaries and affiliates:
In 2014, Carrefour carried out several disposals (see Section II
“Subsidiaries and Affiliates” below), the €688 million net impact of
which has been recognized in non-recurring income and expense from
capital transactions.
■
Other transactions:
On July 15, the Group issued €1,000 million worth of eight-year
1.75% bonds maturing in July 2022.
At the same time, two outstanding issues representing an aggregate
€318 million were retired, as follows:
■
€97 million outstanding from a €763 million 4.375% issue maturing
in November 2016;
■
€221 million outstanding from a €500 million 5.25% issue maturing
in October 2018.
The transaction consolidated the Group’s long-term financing at the
very attractive interest rates currently available in the market. It led to:
■
€682 million increase in the face value of the Group’s bond debt;
■
optimized future borrowing costs due to an issue at a historically low
interest rate;
■
an extension of the average maturity of bond debt, from 3.7 years to
4.2 years (an increase of 0.5 years) as from July 15, 2014.
The €53 million cost of the transaction has been recognized in non-
recurring expense from revenue transactions
In addition, a €151 million provision reversal relating to miscellaneous
contingencies was also recognized.
Net income for the year amounted to €4,440,248,624.63.
Accounts payable balances at December 31, 2014 and 2013 break
down as follows by due date (disclosure made in accordance with
Article L.441-6-1 of France’s Commercial Code.
Invoices not yet received and booked as trade payables are not broken down in this schedule.
Carrefour: due date of trade payables
(in € millions)
December 31, 2014
December 31, 2013
Accounts payable due in less than one month
92.9
95.1
Accounts payable due in one to two months
0.3
1.0
TOTAL
93.2
96.1