Koninklijke Ahold Delhaize N.V. · EURONEXT:AD
Koninklijke Ahold Delhaize — Investor Presentation (2014)
51 slides from Koninklijke Ahold Delhaize's investor presentation, 2014
Slide 1: Albert Heijn Online
Albert Heijn Online Adriaan Thierry EVP Omni-Channel Marketing & Format Albert Heijn 1
Slide 2: Albert Heijn has always been innovative
Albert Heijn has always been innovative 2001: Albert.nl 2014: AH.nl 2012: First Pick-up Point opened 2009: Launch 1987: Start of of Appie app 2013: Expansion James Telesuper Assortment 1987 2014 2
Slide 3: Contents
Contents • AH.nl has a unique set of strengths to win online • Our strategy for growth 3
Slide 4: Ahold has a unique set of strengths to win online
Ahold has a unique set of strengths to win online Strong online Easy and Broad range Serving customers Operational brands in inspirational of high anyhow, excellence dense urban online shopping quality anytime, in online markets experience products anywhere (fresh) food 4
Slide 5: Ahold has a unique set of strengths to win online
Ahold has a unique set of strengths to win online Strong online Easy and Broad range Serving customers Operational brands in inspirational of high anyhow, excellence dense urban online shopping quality anytime, in online markets experience products anywhere (fresh) food 5
Slide 6: Serving our customers anyhow, anytime, anywhere
Serving our customers anyhow, anytime, anywhere Grocery shopping 24/7 • Truly omni-channel digital interfaces • Extensive supermarket opening hours up to 14 hours 7 days a week* • 80% of the Dutch Households live within 2.5 km of an Albert Heijn store • Home deliveries are made 6 days a week from 7.
Slide 7: Unique omni-channel capabilities
Unique omni-channel capabilities • Omni-channel customers* +21% are more loyal and spend more • Combined loyalty card gives us an extensive one-view of the customer • Ability to leverage promo and campaign investments Offline sales E-commerce Total spend (6 periods pre-online) *Source: Bonus card da
Slide 8: Ahold has a unique set of strengths to win online
Ahold has a unique set of strengths to win online Strong online Easy and Broad range Serving customers Operational brands in inspirational of high anyhow, excellence dense urban online shopping quality anytime, in online markets experience products anywhere (fresh) food 8
Slide 9: Strongest brand with high brand awareness
Strongest brand with high brand awareness Top 100 Most Trusted Dutch brands* • Albert Heijn • Philips Brand awareness of AH.nl** • Google • Bol.com • Samsung Top 100 Most Influential Dutch brands* • Google 52% 79% • Microsoft • Facebook • Albert Heijn / Samsung • Ebay 2012 2014 • Youtube • Bol.com *
Slide 10: Home delivery: Large active customer base with high customer satisfaction
Home delivery: Large active customer base with high customer satisfaction Monthly 4.8 million Satisfaction* in 2014 NPS* in 2014 of unique visitors on ah.nl 92% 36 * Satisfaction and NPS of Home Delivery customers 10
Slide 11: Strongest online brand in a dense market
Strongest online brand in a dense market • B2C and B2B customers 84% of Dutch households can • Ah.nl is market leader receive home delivery • Estimated sales 2014: €240 mln 11
Slide 12: Strong online brand with proven business model
Strong online brand with proven business model 2014E EBITDA of 2-3 % in mature home delivery markets Amsterdam: • 6% HH penetration Rotterdam: • 4% HH penetration 2014E EBITDA unprofitable including investments in growth 12
Slide 13: Ahold has a unique set of strengths to win online
Ahold has a unique set of strengths to win online Strong online Easy and Broad range Serving customers Operational brands in inspirational of high anyhow, excellence dense urban online shopping quality anytime, in online markets experience products anywhere (fresh) food 13
Slide 14: Helping our customers with the best technology
Helping our customers with the best technology • Shared shopping lists for multiple devices • Memorizing your shopping list • Personal offers based on profile • Shopping lists for special occasions • Recipes database and instruction videos • Optimal store route of your shopping list #1 Retail App NL
Slide 15: AH.nl makes grocery shopping faster and easier
AH.nl makes grocery shopping faster and easier DEMO 15
Slide 16: It's getting colder outside, let's see if there's a nice pumpkin recipe
It’s getting colder outside, let’s see if there’s a nice pumpkin recipe on Google…
Slide 17: This one from Allerhande looks nice!
This one from Allerhande looks nice! I’ll make it a favourite, to easily access it later..
Slide 18: Add everything I need for this recipe to my shopping list
Great, I can add everything I need for this recipe to my shopping list
Slide 19: I'll let ah.nl do the groceries
Actually, I’m a bit short on time this week. I’ll let ah.nl do the groceries
Slide 20: I'll choose this pick-up point
I’ll choose this pick-up point, as it’s on my way back from work
Slide 21: Choosing which products I'd like to buy
Since I’m ordering online, I have to choose which products I’d like to buy
Slide 22: Let's pick this one
Let’s pick this one Producten Winkels Actueel Sander van der Putten Eerder gekocht Favor Bonusvoordeel Afronden > Klantens Zakeliik Over Albert Heljn + op dozo pagina oponcn in con nlouw tabblad Kies een product voor 300 g risottorljst Kies een afdeling 500 or 2.93 Arborio Risattorijst Boodschappen
Slide 23: Personal offers in Bonus
Now, let’s see if there’s something in Bonus, where I can instantly see my personal offers
Slide 24: The new homepage shows a free delivery offer
The new homepage shows me there’s a free delivery offer as well, let’s check it out
Slide 25: Free delivery when ordering selected wines
Free delivery, when ordering 2 bottles from these selected wines. Sweet!
Slide 26: Finish the shopping trip, selecting regular items
Now, let’s quickly finish our shopping trip, selecting a few of the regular items on my list
Slide 27: One more look at my standard lists
Ok, one more quick look at one of my standard lists, to make sure I have everything
Slide 28: On to the checkout suggestions
On to the checkout. Let’s quickly examine those checkout suggestions
Slide 29: Use the free SMS-reminder
Ok, I’m done. Oh, let’s use that free SMS-reminder, how convenient!
Slide 30: Time to start cooking!
Time to start cooking! cooking! Allerhande is here to help again, again, with step- step-by- by-step cooking at ah.nl
Slide 31: Ahold has a unique set of strengths to win online
Ahold has a unique set of strengths to win online Strong online Easy and Broad range Serving customers Operational brands in inspirational of high anyhow, excellence dense urban online shopping quality anytime, in online markets experience products anywhere (fresh) food 31
Slide 32: Broad range of high quality products
Broad range of high quality products • Our online offering is larger than our largest store assortment • 51% of sales comes from own-brand products • 47% of sales comes from fresh products* 25.000 SKU 21.900 Beyond AH Assortment SKU + 1.500 Gall & Gall + 600 Superfoods 9.000 AH XL & Etos + 1.300 Eto
Slide 33: Ahold has a unique set of strengths to win online
Ahold has a unique set of strengths to win online Strong online Easy and Broad range Serving customers Operational brands in inspirational of high anyhow, excellence dense urban online shopping quality anytime, in online markets experience products anywhere (fresh) food 33
Slide 34: Unrivalled operational excellence
Unrivalled operational excellence 34
Slide 35: Great quality – high service levels
Great quality – high service levels Customer KPI’s YTD 2014 FY 2011 Item availability on website 97.9% 97.1% Item completeness* 99.5% 99.4% Orders on time (not early or late) 98.2% 97.7% *Item completeness: % of the items delivered to customers / ordered items 35
Slide 36: Great quality - Fresh food fulfilment
Great quality - Fresh food fulfilment • AH.nl gets fresh directly delivered to the Home Shop Centers 4 times a day • Average fresh inventory value at 0.7 days • AH.nl guarantees a cool chain of 13 hours after leaving the fresh area at the HSC • Certified by external auditors (ISO, Lloyd’s) 36
Slide 37: Operational excellence – High efficiency
Operational excellence – High efficiency Maximized efficiency Efficiency in Efficiency in in inbound order picking the last mile 37
Slide 38: Maximized efficiency in inbound
Maximized efficiency in inbound • Only ONE main supplier (AH supply chain) for the Home Shop Centers delivering 94% of the goods • Only 20 inbound deliveries per day per Home Shop Center • Efficient replenishment process 38
Slide 39: Efficiency in order picking
Efficiency in order picking • Picking productivity increased from 326 picks per hour in 2012 to 405 picks per hour currently. Overall productivity of 142 units per hour. • The split between fast and slow moving items creates an efficient picking process • Average order size in Home Delivery is 74 it
Slide 40: Efficiency in the last mile
Efficiency in the last mile • Average load factor of delivery vans of 84% • Optimal hub structure • Average distance per order is decreasing: in our mature areas the number of orders have increased by 47% over the past 4 years 40
Slide 41: Contents
Contents • AH.nl has a unique set of strengths to win online • Our strategy for growth 41
Slide 42: Maximize potential through our online growth strategy
Maximize potential through our online growth strategy More customers More places More choices Market share and Well-positioned for Continue to expand market growth geographical quality, ranges, expansion value and choices for our customers and our partners 42
Slide 43: More customers – Market share and market growth
More customers – Market share and market growth • Overall online food market in NL is expected to grow from current 1% to 4-5% in 2020 • Current average penetration of Dutch households buying at AH.nl: around 2.5%. We expect the penetration to grow to around 7% in 2020 43
Slide 44: More customers – Grow B2B
More customers – Grow B2B Segmented Digital marketing development Acquisition Add B2B & account assortment management 44
Slide 45: More places - Increase geographical reach in NL
More places - Increase geographical reach in NL Current: Ambition: Coverage Coverage of 84% of of 95% of Dutch HH Dutch HH > Increase coverage for Home Delivery > Further roll-out of Pick-up points 45
Slide 46: More places – Expand to Belgium in 2015
More places – Expand to Belgium in 2015 To strengthen our store network in Flanders we will start with online grocery and will launch My Bonus omni-channel in Flanders in 2015 46
Slide 47: More choices
More choices AH.nl Launch tablet app New help to plan & choose • Seamless omni-channel web • Best shopping experience on the couch • Help customers to plan the week: experience What’s for dinner today, tomorrow? • Make use of important role that tablets • Full responsive to enable increasingly play
Slide 48: Summary
Summary We have 25 years of We are leading in experience and a digital and offer a strong omni- great online channel brand experience We have an We have highly unrivalled satisfied customers operational and high growth excellence in online opportunities fresh food 48
Slide 49: Cautionary notice
Cautionary notice This presentation includes forward-looking statements, which do not refer to historical facts but refer to expectations based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events t
Slide 50: Thank you
Thank you < a ®@ Ahold 50 Ahold online Strategy
Slide 51: The Home Shop Center of Almere
The Home Shop Center of Almere 51
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