Carrefour: Continuing Growth in a Challenging Environment

23 October 2008

Sales up 8% at constant exchange rates over the first 9 months of the year (+6.8% in Q3)

Solid organic growth: +5.8% over the first 9 months of the year (+5.9% in Q3)

On track to attain 2008 objectives

• Improved performance in France: sales up 3.5% in Q3 (+3.2% like-for-like)
• Outside France, a robust performance in our growth markets^* (+15.8% at constant exchange rates) and resilience in mature European markets (+3.5% at constant exchange rates)
• Positive effects of the action plan launched at the end of H1, and continuation in Q4 of promotional activity, cost cuts and capital expenditure allocation

Q3 sales highlight:

• An upturn in hypermarket sales in France (+2.1% like-for-like, -0.4% excluding petrol in Q3 2008 versus -5.5% in Q2).
• The relevance of our multi-format single-banner strategy and the power of our brand, both in France and abroad: strong start for Carrefour Market conversions in France and growth in own brands.
• Continued strong contribution from our growth markets^*, now accounting for nearly 30% of Group sales (versus 27% in 2007). Nine countries achieved double-digit sales growth at constant exchange rates in Q3.

On track to reach our 2008 objectives:

• Sales growth at constant exchange rates of 7%
• Growth in Activity Contribution broadly in line with sales
• Operating free cash flow of €1.5 billion

Commenting on this sales performance, José Luis Durán, Carrefour’s Chief Executive Officer, said:

"Carrefour delivered a very satisfactory third-quarter performance in a challenging environment. Hypermarket sales in France have begun to improve, our growth markets are continuing to play a driving role and our multi-format single-banner strategy is producing visible results. This demonstrates that our action plan is paying off, we will not slacken our efforts to stand by our customers. Our Q3 numbers put us on track to attain our 2008 objectives."

^* Growth markets: markets outside France, Spain, Italy and Belgium

FRANCE

• Upturn in hypermarket sales
• Continuing favourable trends in supermarkets and convenience stores

The calendar effect in Q3 is estimated at +0.7%.

Hypermarkets:

Like-for-like sales increased by 2.1% including petrol (compared with -0.9% in H1). Excluding petrol, like-for-like sales fell by 0.4%, which constitutes an improvement compared with -3.4% in H1. This strong performance confirms the effectiveness of the promotional campaign carried out in our hypermarkets.

• Food sales rose by 1% in Q3 - an improvement compared with -1.1% in H1 2008 - primarily thanks to growth of 1.8% in dry grocery sales. Sales trends observed recently were confirmed, with a decline in volumes of national brands and increase in volumes of own-label. Price inflation stabilised at around 3.5%.
• Non-food sales fell by 3.3% in Q3, which constitutes an improvement compared with -8.6% in H1. Improvement was seen in all sectors, with good end-of-season discount sales in clothing and good consumer electronics promotions.
• Traffic was down 1.9% - an improvement compared with -4% in H1 - and the average basket was up 1.5%.

Supermarkets:

Like-for-like supermarket sales increased by 4.4% including petrol (vs. 5.9% in H1), or 1.7% excluding petrol (vs. 2.5% in H1).Traffic is slightly negative at -0.5% while the average basket increased by 2.2%.

The roll-out of Carrefour Market continued, with a total of 33 stores converted at the end of Q3. The latest converted stores got off to an excellent start, delivering double-digit sales growth.

90 stores will be converted to the Carrefour Market banner at end-October, and 150 stores at year-end.

Hard discount, convenience stores and other activities:

Hard discount sales increased by 1% in Q3 (-0.3% like-for-like). Like-for-like sales were solid in dry grocery products but adversely affected by poor sales of fresh produce.

"Other" activities saw overall growth of 6.9% or 6.3% like-for-like, thanks to:

• A higher contribution from petrol sales;
• Continuing favourable trends in convenience stores, with like-for-like sales growth of 3%.

WESTERN EUROPE (ex France)

• Resilience of European markets under difficult market conditions

The calendar effect in Q3 was broadly neutral.

With total sales growth of 6.6%, Spain delivered a further solid performance driven by food sales and our multi-format strategy. Hypermarket sales increased by 0.6% like-for-like, with food sales up 3.1% and non-food sales down 7.6%, impacted by the decline in discretionary purchases.

Carrefour Express achieved further robust sales growth, with like-for-like sales up 7.5%. Our hard discount arm Dia also continued to perform well, with total sales growth of 19.3% (+3.2% like-for-like). Our price positioning and our promotional action plan allowed us to continue gaining market share in food and non-food despite a deteriorating economic environment.

Total sales in Italy are stable, with like-for-like sales down 2.7%. Hypermarket sales were up 1.9%, down 3.9% on a like-for-like basis, driven by expansion in square meters. Non-food sales fell 13.3% vs. -7% in Q2. Like-for-like supermarket sales fell slightly, by 1.9%.

Sales in Belgium fell by 1.4% in Q3. Like-for-like hypermarket sales were down 4.2% (compared with a fall of 7.5% in Q2), with slightly more favourable trends in food and in non-food. Integrated supermarkets achieved encouraging like-for-like sales growth of 0.2%, while franchised activities (supermarkets and convenience stores) recorded a 0.7% like for like increase.

GROWTH MARKETS

• Solid sales performance: +15.8% at constant exchange rates
• Nine countries delivered double-digit sales growth at constant exchange rates
• Growth markets: nearly 30% of Group sales versus 27% in Q3 2007

Sales in Latin America increased by 20.2% at constant exchange rates, boosted by solid like-for-like sales (+11.9%) and a continuing sustained contribution from new square meters (+8.3%). As a reminder, Atacadao has been included in like-for-like sales since May 2008.

In Brazil, total sales rose by 16.1% at constant exchange rates, with like-for-like sales up 8.4%. All formats turned in very good performances, particularly Atacadao, which continued to deliver double-digit like-for-like sales growth.

In Argentina, sales rose by 35% at constant exchange rates, with like-for-like sales up 28.5%. All formats (hypermarkets, supermarkets, hard discount) achieved like-for-like growth of at least 20%.

In Colombia, total sales rose by 19.1%, with like-for-like sales up 2.3%. Further gains in market share were made in Q3, with the opening of four hypermarkets.

Sales in Asia rose by 13.8% at constant exchange rates, with like-for-like sales up 2.0%.

In China, sales rose by 13.8% or 3.9% like-for-like. This constitutes an improvement compared with Q2. The rapid pace of expansion is maintained in both hypermarke