Koninklijke Ahold Delhaize N.v. · EURONEXT:AD
Koninklijke Ahold Delhaize — Shareholder Meeting (April 2013)
58 slides from Koninklijke Ahold Delhaize's shareholder meeting presentation, Apr 17, 2013
Slide 1: Annual General Meeting of Shareholders 2013
Annual General Meeting of Shareholders 2013 Welcome Amsterdam, April 17, 2013
Slide 2: Agenda item 1: Opening
Agendapunt 1 / Agenda item 1 • Opening Amsterdam, April 17, 2013 2
Slide 3: Agenda item 2: Report of the Corporate Executive Board
Agendapunt 2 / Agenda item 2 • Verslag van de Raad van Bestuur over het boekjaar 2012 • Report of the Corporate Executive Board for financial year 2012 Amsterdam, April 17, 2013 3
Slide 4: Dick Boer, Chief Executive Officer
Dick Boer Chief Executive Officer
Slide 5: Our promises are how we get better every day
Our promises are how we get better every day Amsterdam, April 17, 2013 5
Slide 6: Better place to shop focuses on what is important to our customers
Better place to shop focuses on what is important to our customers • Great quality and freshness • Finding the products you want • Good prices and exciting promotions • Easy to shop • Friendly and helpful employees Amsterdam, April 17, 2013 6
Slide 7: Better place to work because we are committed to our employees
Better place to work because we are committed to our employees employees' success Amsterdam, April 17, 2013 7
Slide 8: Better neighbor means we are connected to the communities we serve
Better neighbor means we are connected to the communities we serve Better place to work Better neighbor • Healthy living choices made easy • Contribution to community well well-being being • Responsibly sourced products • Care for the environment Amsterdam, April 17, 2013 8
Slide 9: Our promises are how we get better every day
Our promises are how we get better every day Amsterdam, April 17, 2013 9
Slide 10: Our strategy helps us leverage changing consumer trends
Our strategy helps us leverage changing consumer trends Amsterdam, April 17, 2013 10
Slide 11: 2012 was a successful year
2012 was a successful year Solid financial performance • Net sales increased 3.5% at constant rates to €32.8 billion • Underlying operating margin of 4.3% • M k t share Market h gains i iin allll major j markets k t Amsterdam, April 17, 2013 11
Slide 12: Our strategic pillars are driving growth now and in the future
Our strategic pillars are driving growth now and in the future Amsterdam, April 17, 2013 12
Slide 13: We are broadening our offering
We are broadening our offering Our strategic pillars Amsterdam, April 17, 2013 13
Slide 14: We are expanding our geographic reach
We are expanding our geographic reach Our strategic pillars 15 stores added to Giant’s Philadelphia network 82 new Dutch stores 6 million potential customers in Flanders Amsterdam, April 17, 2013 14
Slide 15: We are simplifying our business and reducing costs
We are simplifying our business and reducing costs Our strategic pillars €600 million in 2012 - 2014 Amsterdam, April 17, 2013 15
Slide 16: Amsterdam, April 17, 2013
Amsterdam, April 17, 2013 16 ~ Ahold
Slide 17: Key leadership changes
Key leadership changes Carl Schlicker James McCann Sander van der Laan Amsterdam, April 17, 2013 17
Slide 18: Key leadership changes
Key leadership changes René é Dahan Amsterdam, April 17, 2013 18
Slide 19: We have shown strong performance over the past five years
We have shown strong performance over the past five years Net sales (in millions of euros) 2008 2009 2010 2011 2012 • Net sales increased by €7.2 billion to €32.8 billion, driven by twenty consecutive quarters of identical sales growth Amsterdam, April 17, 2013 19
Slide 20: We have realized steady market share growth
We have realized steady market share growth United States Albert Heijn • Gained in both all-outlets and supermarket channel • Share increased in a consolidating market +240 bps +240 bps 33.6% 33.5% 33.7% 28.9% 29.4% 29.8% 30.5% 28.1% 32.8% 17.4% 17.5% 17.8% 31 3% 31.3% 2008 2009 2010 2011 2012 2008
Slide 21: Creating shareholder value
Creating shareholder value Historical TSR performance 2008 – 2012 Bottom quartile Middle quartiles Top quartile Amsterdam, April 17, 2013 21
Slide 22: 2013 – the year ahead
2013 – the year ahead Belgium Roll out Pick-up points Simplicity Value Amsterdam, April 17, 2013 22
Slide 23: Thank you
Thank you Amsterdam, April 17, 2013 23
Slide 24: Amsterdam, April 17, 2013
Amsterdam, April 17, 2013 24
Slide 25: Jeff Carr, Chief Financial Officer
Jeff Carr Chief Financial Officer
Slide 26: Operating performance
Operating performance ((in millions of euros)) Quarter 4 Full year 2012 2011 Change 2012 2011 Change Sales 7,835 7,290 7.5% 32,841 30,271 8.5% Gross profit margin 26.1% 26.2% (0.1) 26.0% 26.2% (0.2) Underlying operating 355 341 4.1% 1,414 1,375 2.8% income At constant exchange rates 355 346 2 7% 2.7
Slide 27: Operating performance by segment
Operating performance by segment ((in millions)) Ahold USA The Netherlands Other Europe 2012 Change 2012 Change 2012 Change Sales $25,845 3.1% €11,054 5.2% €1,675 (3.7%) Underlying operating $1,069 0.2% €644 (3.3%) €21 5.0% income Underlying operating 4.1% (0.2) 5.8% (0.5) 1.3% 0.1 margin • In the U
Slide 28: Net income
Net income ((in millions of euros)) Quarter 4 Full year 2012 2011 Change 2012 2011 Change Underlying operating income 355 341 4.1% 1,414 1,375 2.8% Non-recurring items and other 199 (13) 186 227 (28) 199 Operating income 156 328 (52.4%) 1,187 1,347 (11.9%) Financing costs (60) (55) (8.1%) (227) (316
Slide 29: Adjusted net income
Adjusted net income ((in millions of euros)) Full year 2012 2011 Change Net income from continuing operations 830 1,032 (19.6%) Adjustments 214 (23) 237 Adjusted income from continuing operations 1,044 1,009 3.4% Adjusted EPS €1.00 €0.91 9.9% Pay out ratio 44% 41% 7.3% Di id d per share Dividend h €
Slide 30: Dividend
Dividend Dividend 2012 • €0.44 per common share Timetable • April 19 19, 2013: Ex-dividend date • April 23, 2013: Dividend record date • May 2, 2013: Payment date Amsterdam, April 17, 2013 30
Slide 31: Free cash flow
Free cash flow ((in millions of euros)) • Free cash flow almost doubled, to a record €1.2 billion in 2012 Amsterdam, April 17, 2013 31
Slide 32: Investments in growth
Investments in growth ((in millions of euros)) 2008 2009 2010 2011 2012 • Stable regular investments to keep stores modern and attractive • Significant acquisitions for growth in 2012 Amsterdam, April 17, 2013 32
Slide 33: Returns to shareholders
Returns to shareholders ((in millions of euros;; dividend per p share)) • €2.9 billion returned between 2008-2012, continued attractive returns to shareholders in 2013 Amsterdam, April 17, 2013 33
Slide 34: Gross and net debt
Gross and net debt • Good progress on making the balance sheet more efficient • Gross debt down €0.5 billion, to €3.2 billion • Cash balances down €0.7 billion, to €1.9 billion • Leverage in line with our financial guidelines • Net debt up €0.3 billion, to €1.4 billion • Net lease-adjusted debt / EB
Slide 35: Pension plans status
Pension plans status Funding ratios YE 2012 YE 2011 Largest Dutch pension plan 114% 106% Ongoing U U.S. S pension plan 118% 92% • Total cash contributions for our ongoing plans will not increase in 2013 • Adoption of IAS19R in combination with decrease of discount rates is expected to have • €50 mil
Slide 36: Summary
Summary • Sales growth of 3.5% at constant exchange rates in 2012 • Delivering on our cost reduction program of €600 million • Underlying operating income up 2.8% to €1.4 billion • Record free cash flow of €1.2 €1 2 billion • Proposed dividend of €0.44 per share (up 10%) • New €500 million share buy
Slide 37: Cautionary notice
Cautionary notice These presentations 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
Slide 38: Discussion agenda items 2, 3, 4 and 5
Discussie agendapunten 2, 3, 4 en 5 Discussion agenda items 2, 3, 4 and 5 Amsterdam, April 17, 2013 38
Slide 39: Voting is open
Stemming is geopend / Voting is open Om te stemmen, druk op 1, 2 of 3 Register your vote by pressing 1, 2 or 3 1 = voor / for 2 = tegen / against 3 = onthouding / abstention Correctie / Correction Maak opnieuw uw keuze. Uw laatste keuze geldt. Make your choice again. Your last choice will be registe
Slide 40: Agenda item 4: Adopt 2012 financial statements
Agendapunt 4 / Agenda item 4 • Voorstel tot vaststelling van de jaarrekening over het boekjaar 2012 • Proposal to adopt 2012 financial statements Amsterdam, April 17, 2013 40
Slide 41: Agenda item 5: Determine the dividend
Agendapunt 5 / Agenda item 5 • Voorstel tot vaststelling dividend over het boekjaar 2012 • Proposal to determine the dividend over financial year 2012 Amsterdam, April 17, 2013 41
Slide 42: Agenda item 6: Discharge of Executive Board
Agendapunt 6 / Agenda item 6 • Voorstel tot het verlenen van décharge aan de leden van de Raad van Bestuur • Discharge of liability of the members of the Corporate Executive Board Amsterdam, April 17, 2013 42
Slide 43: Agenda item 7: Discharge of Supervisory Board
Agendapunt 7 / Agenda item 7 • Voorstel tot het verlenen van décharge aan de leden van de Raad van Commissarissen • Discharge of liability of the members of the Supervisory Board Amsterdam, April 17, 2013 43
Slide 44: Agenda item 8: Appoint Mr. Hommen
Agendapunt 8 / Agenda item 8 • Voorstel tot benoeming van de heer J.H.M. Hommen tot lid van de Raad van Commissarissen met ingang van 1 oktober 2013 • Proposal to appoint Mr. J.H.M. Hommen as a member of the Supervisory Board, with effect from October 1, 2013 Amsterdam, April 17, 2013 44
Slide 45: Agenda item 9: Reappoint Mr. Doijer
Agendapunt 9 / Agenda item 9 • Voorstel tot benoeming van de heer D.C. Doijer voor een nieuwe termijn tot lid van de Raad van Commissarissen met ingang van 17 april 2013 • Proposal to appoint Mr. D.C. Doijer for a new term as a member of the Supervisory Board, with effect from April 17, 2013 Amsterd
Slide 46: Agenda item 10: Reappoint Mrs. Shern
Agendapunt 10 / Agenda item 10 • Voorstel tot benoeming van mevrouw S.M. Shern voor een nieuwe termijn tot lid van de Raad van Commissarissen met ingang van 17 april 2013 • Proposal to appoint Mrs. S.M. Shern for a new term as a member of the Supervisory Board, with effect from April 17, 2013 Amster
Slide 47: Agenda item 11: Reappoint Mr. Noteboom
Agendapunt 11 / Agenda item 11 • Voorstel tot benoeming van de heer B.J. Noteboom voor een nieuwe termijn tot lid van de Raad van Commissarissen met ingang van 17 april 2013 • Proposal to appoint Mr. B.J. Noteboom for a new term as a member of the Supervisory Board, with effect from April 17, 2013 A
Slide 48: Agenda item 12: Amend Remuneration Policy
Agendapunt 12 / Agenda item 12 • Voorstel tot wijziging van het bezoldigingsbeleid voor de leden van de Raad van Bestuur • Proposal to amend the Remuneration Policy for the Corporate Executive Board members Amsterdam, April 17, 2013 48
Slide 49: Agenda item 13: Amend Supervisory Board remuneration
Agendapunt 13 / Agenda item 13 • Voorstel tot wijziging van de bezoldiging van de Raad van Commissarissen • Proposal to amend the remuneration of the Supervisory Board Amsterdam, April 17, 2013 49
Slide 50: Agenda item 14: Amend Articles of Association
Agendapunt 14 / Agenda item 14 • Voorstel tot wijziging van de statuten • Proposal to amend the Articles of Association Amsterdam, April 17, 2013 50
Slide 51: Agenda item 15: Appointment of auditor
Agendapunt 15 / Agenda item 15 • Benoeming Accountant • Appointment Auditor Amsterdam, April 17, 2013 51
Slide 52: Agenda item 16: Authorization to issue shares
Agendapunt 16 / Agenda item 16 • Aanwijzing tot uitgifte van aandelen • Authorization to issue shares Amsterdam, April 17, 2013 52
Slide 53: Agenda item 17: Restrict or exclude pre-emptive rights
Agendapunt 17 / Agenda item 17 • Aanwijzing tot het beperken of uitsluiten van voorkeursrechten • Authorization to restrict or exclude pre-emptive pre emptive rights Amsterdam, April 17, 2013 53
Slide 54: Agenda item 18: Authorization to acquire shares
Agendapunt 18 / Agenda item 18 • Machtiging tot inkoop van eigen aandelen • Authorization to acquire shares Amsterdam, April 17, 2013 54
Slide 55: Agenda item 19: Cancellation of common shares
Agendapunt 19 / Agenda item 19 • Intrekking van gewone aandelen • Cancellation of common shares Amsterdam, April 17, 2013 55
Slide 56: Agenda item 20: Closing
Agendapunt 20 / Agenda item 20 • Sluiting • Closing Amsterdam, April 17, 2013 56
Slide 57: Questions
Questions Amsterdam, April 17, 2013 57
Slide 58: Thank you
Thank you Amsterdam, April 17, 2013 58
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