Koninklijke Ahold Delhaize N.v. · EURONEXT:AD
Koninklijke Ahold Delhaize — Q3 2018 Earnings Presentation
18 slides from Koninklijke Ahold Delhaize's earnings presentation, Nov 7, 2018
Slide 1: Third Quarter 2018 Results
Third Quarter 2018 Results November 7, 2018
Slide 2: Q3 Highlights
Q3 Highlights Frans Muller President and CEO
Slide 3: Highlights – Third quarter 2018
Highlights – Third quarter 2018 Strong sales and earnings growth, increased free cash flow guidance for 2018 • Net sales of €15.8 billion, up 3.6%* • US comparable sales up 3.0% (excluding hurricane up 2.5%) with positive volume growth • Net consumer online sales up 27.6%* • Underlying operating mar
Slide 4: Financial Results
Financial Results Jeff Carr CFO
Slide 5: Group performance
Group performance € in million Quarter 3 2018 2017 Change Change actual rates constant rates Net sales 15,780 15,136 4.3% 3.6% Underlying EBITDA 1,080 1,026 5.4% 4.6% Underlying EBITDA margin 6.9% 6.8% Underlying operating income 647 591 9.6% 8.8% Underlying operating margin 4.1% 3.9% Operating Inco
Slide 6: United States: Strong sales performance with volume growth
United States Strong sales performance with volume growth Comparable sales growth 1 Underlying operating margin 4.1% 4.3% 4.0% 4.1% 3.9% 2.8% 3.0% 1.3% 1.0% Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 -0.1% 1 Comparable sales growth excl. gas • Net sales up 3.2% at constant rates to
Slide 7: The Netherlands: Strong sales growth, both in stores and online
The Netherlands Strong sales growth, both in stores and online Comparable sales growth Underlying operating margin 6.0% 5.9% 5.3% 5.1% 4.9% 4.7% 4.9% 3.6% 3.2% 2.9% Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 • Net sales up 5.8% to €3,469 million compared to the same quarter last yea
Slide 8: Belgium: Steady progress by improvement plans
Belgium Steady progress by improvement plans Comparable sales growth Underlying operating margin 4.1% 3.0% 3.2% 2.7% 2.3% 1.4% 1.0% 0.6% 0.0% Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 -0.3% • Net sales were €1,226 million, up 1.0% versus the same quarter last year • Comparable sale
Slide 9: Central and Southeastern Europe: Continued strong sales growth
Central and Southeastern Europe Continued strong sales growth in Romania and Czech Republic Comparable sales growth ¹ Underlying operating margin 5.4% 4.3% 3.6% 3.7% 3.0% 0.5% 0.7% 0.5% 0.6% 0.3% Q3'17 Q4'17 Q1'18 Q2'18 Q3 '18 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 ¹ Comparable sales growth excl. gas • Net s
Slide 10: Free Cash Flow
Free Cash Flow € in million 2018 2017 Q3 YTD Q3 YTD Operating cash flow 995 3,020 951 3,006 Change in working capital 27 (14) (52) (391) Income tax paid – net (38) (132) (111) (328) Cash from cont. operations 984 2874 788 2,287 Net investments (412) (1,062) (332) (1,085) Net interest paid (35) (157)
Slide 11: Synergies and One-time costs
Synergies and One-time costs € in million Quarter 3 2018 2017 Incremental United States 77 36 41 Europe 24 22 2 Global Support Office 12 10 2 Ahold Delhaize Group synergies 113 68 45 € in million Q3 Costs to date Expected full costs Integration costs 26 336 380 Brand centric restructuring costs - 41
Slide 12: Business Highlights
Business Highlights Frans Muller President and CEO
Slide 13: Inspiring customers with new store formats
Inspiring customers with new store formats • Delhaize opened the first five remodeled stores based on a new format. A highlight of the new concept store in Nivelles is the ‘Fresh Atelier’, offering freshly prepared ready-to-eat meals, using recipes that contribute to a balanced diet • Albert has cre
Slide 14: Developing and expanding our e-Commerce and digital programs
Developing and expanding our e-Commerce and digital programs • Albert Heijn launched its first check-out free stores, offering customers super fast shopping without waiting in line. The ‘tap to go’ technology will be rolled out to all convenience stores • Albert Heijn has taken the next step in offe
Slide 15: Wrap up & Outlook 2018
Wrap up & Outlook 2018 • Net sales of €15.8 billion, up 3.6%* • US comparable sales up 3.0%, excluding hurricane up 2.5% • Net consumer online sales up 27.6%* • Underlying operating margin of 4.1%, up 0.2% points, supported by synergies • Net income of €459 million; up 26.0%* • Strong free cash flow
Slide 16: Cautionary notice
Cautionary notice This communication includes forward-looking statements. All statements other than statements of historical facts may be forward-looking statements. Words such as target, will, will be, outlook, be, expected, to be or other similar words or expressions are typically used to identify
Slide 17: Proud companies of Ahold Delhaize
S& Ahold @ Delhaize QdA Foon RALION — SY stopsshop quan wants = Yciant —Peaped mmm (] tos = o doce GalleGall polcom® albert OO €F Tempo Baaitnoutos | ENAF202 ba Ahold Delhaize Proud companies of
Slide 18: Thank you
ZS) Ahold XW Delhaize Thank you DewHArze FooDAALION — SY stopeshop: ala wants LG cint Peaped’ QQ (es C4 1e doce GalleGall polcom® albert f=) MAXI] 47 Tempo Bogiabnoutes | ENA F000 ba Ahold Delhaize Proud companies of
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