Koninklijke Ahold Delhaize N.v. · EURONEXT:AD
Koninklijke Ahold Delhaize — Ahold Delhaize — Investor Day (2024)
20 slides from Koninklijke Ahold Delhaize's investor day presentation, 2024
Slide 1: Growing Together – Strategy Day 2024
strategy day 2024 growing together Jolanda Poots-Bijl
Slide 2: Cautionary notice
cautionary notice This communication contains information that qualifies as inside information within the properties that the Company owns or leases; competitive labor markets, changes in meaning of Article 7(1) of the EU Market Abuse Regulation. labor conditions and labor disruptions; increases in
Slide 3: Welcome to our 2024 Strategy Day
welcome to our 2024 strategy day 01 02 03 04 05 Opening U.S. EU&I Deep Financial & Group Regional Regional Dives Ambitions Strategy Strategy Strategy • People & Communities • Own Brand • Technology & AI 3 Ahold Delhaize - Strategy Day 2024
Slide 4: Our Growing Together strategy
our growing together strategy our our purpose growth inspiring everyone to eat and live better, for a model healthier future for people and planet our vision together, we are your profitable growth… trusted local food retailer industry leading margins strong free cash flow growing shareholder return
Slide 5: 2021 investor day promises
+€10bn sales vs. 2022 2021 investor €4bn S4OC savings from 2022-2025 day promises CAPEX at 3.0% of sales between 2022-2025 (adjusted in 2022 from 3.5%) UOM of ≥4% high-single-digit CAGR underlying EPS growth 2023-2025 financial guidance €7.5bn free cash flow 2022-2025 (adjusted in 2022 from 6bn) 2x
Slide 6: 4% growth, 4% UOM, €3bn
high-single-digit EPS growth 4% growth 4% UOM (diluted underlying EPS) CAGR net sales on average intention for €3bn €5bn savings €1bn complementary save for our customers annual share buy-back1 income streams increasing ~3% €9bn dividend1 gross cash capex free cash flow on an annual basis with 40-50
Slide 7: Our growth model
our growth model
Slide 8: Deliver trusted products, vibrant customer experiences
invest in our winning CVP deliver trusted products, vibrant customer experiences and support healthy grow own brand grow healthy sales enhance price position communities & planet ~45% own brand food share
Slide 9: Grow customer reach and market density
densify and grow markets grow customer reach and market density with portfolio excellence densify & expand 9 markets actively pursue bolt-on acquisitions timely interventions when and where and partnerships required 80% ~30m omnichannel monthly active loyalty sales users
Slide 10: Drive growth across the ecosystem through innovation and new business
unlock test, learn, accelerate seize circular capture new deeper data scale retail media business capability innovate for growth analytics & AI mechanization model and business capabilities and opportunities model and efficiency automation innovation drive growth across the ecosystem through innovat
Slide 11: Leverage and lower our cost base
leverage and lower our cost base lower our cost and unlock cost of goods logistics & store general and funding to fuel sold distribution operations administrative growth €5bn save for our customer
Slide 12: Fueling growth through capital expenditure
2023 2028 new stores new stores DigiTech maintenance & others distribution DigiTech remodels fueling growth through capital expenditure ~3% gross cash capex
Slide 13: Our purpose
our purpose inspiring everyone to eat and live better, for a healthier future for people and planet material growth 50% reduction 5% reduction in virgin in healthy sales % in food waste plastic by 2025 across the full store by 2030 across own brand versus 2021 baseline versus 2016 baseline 30% FLAG
Slide 14: 4% growth, 4% UOM, €3bn
high-single-digit EPS growth 4% growth 4% UOM (diluted underlying EPS) CAGR net sales on average intention for €3bn €5bn savings €1bn complementary save for our customers annual share buy-back1 income streams increasing ~3% €9bn dividend1 gross cash capex free cash flow on an annual basis with 40-50
Slide 15: Raising the bar on free cash flow delivery
>€8bn >€8bn €9bn raising the bar on free cash flow delivery 2017-2020 2021-2024 2025-2028 cumulative free cash flow delivery
Slide 16: 4% growth, 4% UOM, €3bn
high-single-digit EPS growth 4% growth 4% UOM (diluted underlying EPS) CAGR net sales on average intention for €3bn €5bn savings €1bn complementary save for our customers annual share buy-back1 income streams increasing ~3% €9bn dividend1 gross cash capex free cash flow on an annual basis with 40-50
Slide 17: Strong financial position
strong financial position 2.0 BBB+ net debt/ S&P underlying EBITDA 13.3% Baa1 return on capital (2023) Moody’s healthy financial investment grade ratios rating
Slide 18: Current incentives aligned with our ambitions
long term incentives short term incentives carbon sales ROC emissions growth UOM 30% 25% 35% 25% current strategic EPS TSR incentives 25% 15% cash flow imperatives aligned with 20% 25% our ambitions
Slide 19: Our ambitions are realized by our people
our ambitions are realized by our people thriving people
Slide 20: Successfully serving customers for more than 150 years
our brands have been successfully serving customers for more than 150 years