Koninklijke Ahold Delhaize N.v. · EURONEXT:AD
Koninklijke Ahold Delhaize — Q2 2016 Earnings Presentation
26 slides from Koninklijke Ahold Delhaize's earnings presentation, Aug 25, 2016
Slide 1: Second Quarter 2016 Results
Second Quarter 2016 Results August 25, 2016
Slide 2: Today's second quarter results presentation - content
Second Quarter 2016 Results 2 Today’s second quarter results presentation - content • Introduction – Dick Boer • Ahold Q2 2016 results – Dick Boer, Jeff Carr • Delhaize Group Q2 2016 results – Frans Muller • Ahold Delhaize’s integration, outlook and upcoming events – Dick Boer, Frans Muller, Jeff Ca
Slide 3: Strong Q2 results for both Ahold and Delhaize Group provide good momentum
Strong Q2 results for both Ahold and Delhaize Group provide good 3 momentum for Ahold Delhaize • Ahold Delhaize merger effective on July 24, 2016 • Two separate sets of results as Q2 for both companies ended prior to merger completion • Ahold underlying operating income of €355 million, up 8.0% at c
Slide 4: Ahold second quarter 2016 results
Second Quarter 2016 Results 4 Ahold Second quarter 2016 results Dick Boer, Jeff Carr
Slide 5: Ahold second quarter 2016 highlights
Second Quarter 2016 Results 5 Ahold second quarter 2016 highlights • 3.0% increase in Q2 Group sales to €9.0 billion (up 4.4% excluding gas at constant exchange rates) • Improving volume sales trend in the United States • Continued strong online consumer sales in the Netherlands, up more than 30% •
Slide 6: Group performance - Ahold
Second Quarter 2016 Results 6 Group performance - Ahold (€ in Millions) Quarter 2 2016 2015 Change Change* Net sales 8,951 8,688 3.0% 3.6% • Continued good operational and financial performance Net sales excl gas 4.4% • Underlying operating margin improved, primarily resulting from Underlying operat
Slide 7: Performance by segment - Ahold
Second Quarter 2016 Results 7 Performance by segment - Ahold (€ in Millions) Quarter 2 Ahold USA The Netherlands Czech Republic 2016 Change* 2016 Change 2016 Change* • Strong net sales excluding gas resulting mainly from positive Net sales 5,526 3.4% 3,022 4.6% 403 (0.3%) volume development in the U
Slide 8: Operating cash flow generation - Ahold
Second Quarter 2016 Results 8 Operating cash flow generation - Ahold (€ in Millions) Quarter 2 2016 2015 Change Operating cash flow* 575 534 41 • Strong operating cash flow delivered • Higher income taxes paid Change in working capital 41 59 (18) compared to last year which included several one-off
Slide 9: Ahold business highlights
Second Quarter 2016 Results 9 Ahold business highlights USA The Netherlands bol.com • New Produce department rolled out • Leading in choice and quality: new • Consumer sales in Belgium up 59% to 688 stores, new Bakery to 640 assortment of over 600 products and Plaza sales up 83% stores, showing volu
Slide 10: Delhaize Group second quarter 2016 results
Second Quarter 2016 Results 10 Delhaize Group Second quarter 2016 results Frans Muller
Slide 11: Delhaize Group second quarter 2016 highlights
Second Quarter 2016 Results 11 Delhaize Group second quarter 2016 highlights Group • Revenues +4.3% at identical exchange rates • Underlying operating profit +12.1% at identical exchange rates • Operating free cash flow of €258 million U.S. • Continued solid CSS (2.9%) and real growth (3.9%) at both
Slide 12: Financial results Q2 2016 - Delhaize Group
Second Quarter 2016 Results 12 Financial results Q2 2016 – Delhaize Group (€ in Millions) Quarter 2 % Growth 2016 2015 Actual rates Identical rates Revenues 6,286 6,114 2.8% 4.3% Gross Margin 24.4% 24.4% 5 bps 7 bps SG&A as % of revenues 21.0% 21.2% (16 bps) (14 bps) Underlying EBITDA 414 393 5.2% 6
Slide 13: Delhaize America organic revenue and underlying operating margin
Second Quarter 2016 Results 13 Organic revenue and Delhaize America -1.0% +0.3% -0.3% 2016 Q2 +3.9% CSS +2.9% +2.9% Real growth Retail inflation CSS Calendar Impact Expansion Organic Revenue Growth Underlying operating Q2 margin impacted by: Q2 2015 3.9% • (+) Continued sales momentum at both margin
Slide 14: Delhaize Belgium organic revenue and underlying operating margin
Second Quarter 2016 Results 14 Organic revenue and Delhaize Belgium +0.2% +0.3% 2016 Q2 +2.6% CSS +2.1% CSS Calendar Impact Expansion Organic Revenue Growth Underlying operating Q2 2015 3.2% margin Q2 Q2 margin impacted by: Q2 2016 3.3% • (+) Transformation Plan savings • (-) Higher shrink in superm
Slide 15: Delhaize Southeastern Europe organic revenue and underlying operating margin
Second Quarter 2016 Results 15 Organic revenue and Delhaize Southeastern Europe +5.0% +0.5% +14.2% 2016 Q2 CSS +8.7% CSS Calendar Impact Expansion Organic Revenue Growth Underlying operating Q2 2015 4.5% Q2 margin impacted by: margin Q2 • (+) Strong revenues in Romania Q2 2016 5.0% and Greece • (+)
Slide 16: Free cash flow - Delhaize Group
Second Quarter 2016 Results 16 Free cash flow - Delhaize Group (€ in Millions) Operating Free Cash Flow Q2 2015 322 Q2 Q2 2016 258 771 Free Cash Flow Generation 267 109 2016 H1 329 35 31 42 31 -42 EBITDA Changes Net Cash Other Operating Transfor- in core payment capex Free Cash mation Plan Merger- F
Slide 17: Integration, outlook & upcoming events
Second Quarter 2016 Results 17 Ahold Delhaize Integration, outlook & upcoming events Dick Boer, Frans Muller, Jeff Carr
Slide 18: Integration off to a good start
Second Quarter 2016 Results 18 Integration off to a good start • Smooth Day 1 transition, showing the value of solid integration preparation • Successful integration of two Head Offices into single Zaandam-based HQ • Kick-off has started of cultural integration agenda • Global Integration Management
Slide 19: Capturing our synergies: sourcing
Second Quarter 2016 Results 19 Capturing our synergies: sourcing • Post-close analysis of sourcing opportunities confirmed synergy potential • Vendor meetings started in The Netherlands and Belgium; U.S. meetings start in September • Ahold Delhaize will be member of Coopernic (National Brands only)
Slide 20: Pro-forma information
Second Quarter 2016 Results 20 Pro-forma information • Pro-forma historical quarterly segment data to be published October 6, 2016 • Five business segments: The Netherlands, Belgium, Central and Southeastern Europe and two reporting entities in the United States • Quarterly comparable P&L data will
Slide 21: Divestments (to be excluded in pro forma)
Second Quarter 2016 Results 21 Divestments (to be excluded in pro forma) U.S. • 86 stores to be divested in the U.S.; proceeds of $174 million, no significant impact on earnings • 2015 results of these 86 stores: net sales of $1.4 billion, underlying operating income of $88 million • Additionally, 1
Slide 22: Outlook Ahold Delhaize
Second Quarter 2016 Results 22 Outlook Ahold Delhaize • Expected capital expenditure of €1.8 billion for 2016 • Free cash flow of €1.3 billion for 2016 expected, including €0.2 billion of transaction, integration and Delhaize Belgium's Transformation Plan costs and estimated proceeds from divestment
Slide 23: Ahold Delhaize kicks off with good momentum
Second Quarter 2016 Results 23 Ahold Delhaize kicks off with good momentum • Two strong sets of pre-merger results: combining two great companies • Driving ahead with full energy to deliver to customers and communities, associates and shareholders • Strong commitment to delivering great food, value,
Slide 24: Upcoming events
Second Quarter 2016 Results 24 Upcoming events • Pro-forma historical quarterly segment data October 6, 2016 • Ahold Delhaize Q3 results November 17, 2016 • Capital Markets Day in London December 7, 2016 • Ahold Delhaize Q4/FY trading statement January 17, 2017 • Ahold Delhaize Q4/FY results March 1
Slide 25: Cautionary notice
Second Quarter 2016 Results 25 Cautionary notice This communication contains 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
Slide 26: Thank you
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