Koninklijke Ahold Delhaize N.v. · EURONEXT:AD
Koninklijke Ahold Delhaize — Q4 2022 Earnings Presentation
35 slides from Koninklijke Ahold Delhaize's earnings presentation, Feb 15, 2023
Slide 1: Q4 & FY 2022 Ahold Delhaize Results
Q4 & FY 2022 Ahold Delhaize Results February 15, 2023 Ahold Delhaize – Q4/FY 2022 Results 1
Slide 2: Cautionary notice
Cautionary notice This communication includes forward-looking statements. All statements other than statements of historical facts may be forward-looking statements. Words and expressions such as propose, outlook, ambition(s), commitment, proposition, on track, guidance, priorities, will, target(s),
Slide 3: Welcome
Welcome JP O’Meara SVP Investor Relations Ahold Delhaize – Q4/FY 2022 Results 3
Slide 4: Ahold Delhaize delivers strong increase in cost savings
• With double-digit food inflation levels in Q4, our brands intensified efforts to deliver customers great value and easy access to affordable and healthy food options. A key component of our efforts has been our Save for Our Customers cost savings program, which yielded 15% more savings than origin
Slide 5: Business Highlights Q4 & FY2022
Business Highlights Q4 & FY2022 Frans Muller, President & CEO
Slide 6: Empowering customer choice by providing great value and easy access
Empowering customer choice by providing great value and easy access to affordable and healthy food options Effective negotiations Deepening with suppliers engagement with and efficient our customers end-to-end through optimized process loyalty programs Expanding own-brand and healthy assortment Ahol
Slide 7: Exceeded Save For Our Customers goal with €979 million for 2022
Exceeded Save For Our Customers goal with €979 million for 2022 Forecasting ≥€4 billion of additional savings from 2022-2025 Initial target • Save for Our Customers helps fund Additional Savings growth investments, absorbs cost pressures, and improves our €979 customer value proposition €967 €844 •
Slide 8: Giving back to our local communities
Giving back to our local communities Ahold Delhaize – Q4/FY 2022 Results 8
Slide 9: Performance Review: Key Highlights
Performance Review: Key Highlights Key Financial Targets 2022 Most Recent Guidance Results in 2022 Group underlying operating margin ≥ 4.0% 4.3% Low double-digit growth % Diluted underlying EPS growth at actual rates 16.5% vs 2021 Capital expenditures, net ~ €2.5 billion €2.2 billion Free cash flow
Slide 10: Strong portfolio delivers resilient Q4 performance
Strong portfolio delivers resilient Q4 performance Net Sales €23.4 bn vs LY constant rates +8.1% Diluted Underlying EPS €0.72 vs LY actual rates +22.6% Ahold Delhaize – Q4/FY 2022 Results 10
Slide 11: Food Lion winning streak continues
Food Lion winning streak continues Highlights: • 41 consecutive quarters of positive comparable sales growth • Food Lion To Go is now available in 655 stores with 50 additional planned for 2023 • Recognized by Newsweek as one of ‘America’s Greatest Workplaces for Diversity’ Ahold Delhaize – Q4/FY 20
Slide 12: Albert Heijn winning market share
Albert Heijn winning market share Highlights: • bol.com 2022 market share of 37%, up 130 Full Yearnet basis points compared to 2021 consumer online • sales Albert €1.2 Heijn was Premium celebrates 1-year anniversary billion 2022>675,000 members in Q3 with • up 5.6% label products voted ‘best product
Slide 13: Stop & Shop NYC remodels encouraging
Stop & Shop NYC remodels encouraging Highlights: • 4 remodels in New York City in second half of 2022 with 8 planned for Q1 2023 • Roll-out of key learnings from NYC to 40 other urban stores throughout 2023 • Flashfood expanded to 42 stores and to more than 300 in 2023 Ahold Delhaize – Q4/FY 2022 Re
Slide 14: bol.com full year results
GMV excluding VAT1 Net sales €2.7 bn €5.5 bn vs LY vs LY (1.9%) (3.2%) bol.com Underlying Net Consumer Full year EBITDA €125m Online Sales2 €5.4 bn results vs LY (29.9%) vs LY 2022 (1.8%) Capital Expenditure €169m vs LY +10.3% 1. Gross merchandise value (“GMV”) is the total gross value of goods sold
Slide 15: bol.com's investment in new revenue streams is paying off
bol.com’s investment in new revenue streams is paying off Highlights: • bol.com advertising revenues up 43% versus prior year • Logistic services revenue up 18% versus prior year • Highest ever online market share for electronics • Introduced a Smart Shopping page to help customers save money by hig
Slide 16: Financial Highlights Q4 & FY 2022
Q4 & FY 2022 Financial Highlights Natalie Knight, Chief Financial Officer
Slide 17: Fourth Quarter results (underlying)
Comparable Sales Growth Net sales excl. gas €23.4 bn +7.9% U.S. 9.3% EU 5.7% vs LY constant rates Fourth +8.1% Quarter results Underlying operating income Net Consumer 2022 Online Sales1 €1.0 bn Underlying €3.2 bn vs LY constant rates Operating vs LY constant rates +13.8% Margin +5.0% Underlying 4.4
Slide 18: Full year results (underlying)
Comparable Sales Growth excl. gas Net sales €87.0 bn +5.4% U.S. 6.8% EU 2.9% vs LY constant rates +6.9% Full year results Underlying operating income Net Consumer 2022 Online Sales1 €3.7 bn Underlying €11.3 bn vs LY constant rates Operating vs LY constant rates +3.5% margin +4.9% Underlying 4.3% Per
Slide 19: Fourth Quarter results (IFRS-reported)
Net sales Online Sales €23.4 bn €2.4 bn vs LY actual rates vs LY actual rates +15.9% +12.4% Fourth Quarter results Operating income 2022 Positively impacted by gains on Operating €1.2 bn margin sale of assets of €158m vs LY actual rates +30.5% 5.0% vs LY actual rates IFRS-Reported +0.6 pts Results D
Slide 20: Full year results (IFRS-reported)
Net sales €87.0 bn Online Sales vs LY actual rates +15.1% €8.6 bn vs LY actual rates +11.9% Full year results Operating income 2022 €3.8 bn vs LY actual rates Operating margin +13.5% 4.3% vs LY actual rates IFRS-Reported (0.1) pts Results Diluted EPS Net income from continuing €2.54 operations vs LY
Slide 21: Comparable sales growth trends by region
Actuals excluding gas Ex weather/calendar Comparable sales growth trends by region Q4 Group Comparable Ex. Gas Sales Growth excl. gas Europe +7.9% U.S. Q4 Q4 +9.3% +5.7% 9.3% 8.8% 8.2% 7.4% 7.5% 7.8% 6.9% 6.4% 6.5% 5.7% 5.6% 5.5% 4.8% 5.0% 3.9% 3.3% 2.9% 2.9% 1.8% 1.0% 0.9% 1.1% -2.4% -3.1% Q4 2021
Slide 22: Highlights: United States
Highlights: United States • Net sales grew 9.2% at constant rates, 22.2% at actual rates, to €14.8 bn • Q4 comparable sales excluding gasoline increased 9.3% • 17.3% online sales growth in Q4 (constant rates); building on top of 31% growth in the same quarter last year • Food Lion and Hannaford achi
Slide 23: Highlights: Europe
Highlights: Europe • Net sales were €8.6 bn, an increase of 6.2% at constant exchange rates and 6.6% at actual exchange rates • Q4 Europe comparable sales excluding gasoline increased 5.7% • Net consumer online sales in the segment -0.6% compared to 27.9% growth in prior year; grocery online sales i
Slide 24: Q4 and Full Year Free Cash Flow Bridge
Q4 and Full Year Free Cash Flow Bridge FCF Q4 & FY2022 vs Last Year (in €m) Ahold Delhaize – Q4/FY 2022 Results 24
Slide 25: Full Year Debt Bridge
Full Year Debt Bridge FY2022 vs Last Year (in €m) Ahold Delhaize – Q4/FY 2022 Results 25
Slide 26: Strong dividend growth from 2018 through 2022
Strong dividend growth from 2018 through 2022 • We propose a cash dividend of € 1.05 per common share for the € 1.05 financial year of 2022 € 0.95 € 0.90 • This reflects our ambition of € 0.76 sustainable growth of the dividend € 0.70 share. This represents a payout ratio of 40%, based on the expect
Slide 27: Healthy & Sustainable
54.4% Healthy & Sustainable Reducing Food 32% Waste of healthy Reduction in Reducing CO2 own-brand sales emissions absolute CO2 Elevating healthy emissions1 33% Reduction in food waste2 1. % reduction is based on the cumulative trajectory towards the 50% reduction of absolute scope 1 and 2 CO-2 equi
Slide 28: Healthy & Sustainable Targets And Ambitions
Healthy & Sustainable Targets And Ambitions 2023 2025 2030 2040 2050 Target Target Target Target Target % of healthy own-brand food 55.0% 55.6%1 sales Reduction in tonnes of food 34% >38%1 50% waste2 Absolute CO2-equivalent emissions 34%1 50% Net zero (scope 1 and 2)3 % reduction in absolute CO2- 37
Slide 29: 2023 Outlook
2023 Outlook Frans Muller, President & CEO
Slide 30: Leading Together through our priorities
Leading Together through our 4 priorities For customers For operations For our portfolio For Health & Sustainability Accelerate Serve Create Lead the omnichannel customers with the ecosystem for the transformation transformation & deeper (digital) smarter into a healthy & continue to be the relation
Slide 31: 2023 Priorities Outlook
2023 Priorities Outlook ≥20% complementary revenue streams growth Double-digit Omnichannel loyalty sales ecosystem growth ≥€1 bn Operational excellence Save for Our Customers Monetization Accelerate Ahold Delhaize – Q4/FY 2022 Results 31
Slide 32: 2023 Outlook reinforces commitment to Leading Together
2023 ≥4% 2023 Outlook ≥€1 billion reinforces Underlying Operating Margin Save for commitment to Around 2022 levels Our Customers Leading Together Underlying diluted EPS Our great local brands continue to ~€2.5 billion ~€2.0 billion support customers to manage their shopping Capital Free Cash Flow ba
Slide 33: Industry-leading local omnichannel food retailer
Total stores 7,659 Optimized Industry-leading local own-brand products omnichannel food retailer 60M customers served weekly Dense networks Own-brand 1,547 penetration in U.S. loyalty customers of Click & Collect the EU of ~50% 20M with ~80% points in U.S. and U.S. of ~32% loyalty sales penetration
Slide 34: Ahold Delhaize brands
8% Ahold 9 Delhaize A FOODAALION §$sToPssHop. =m LIED 64 Tempo Ay eeevtenovtes ENA LO02 Sreshdirect The GIANT Company Giant Qe La Eos 6 Peapsd Rotall Business. Sa Sorvicos: % as ausa oP eeensss EE Siri anm retenmines Aho = Delhaize
Slide 35: Thank you
8% Ahold 9 Delhaize Thank you FOODAALION $sTopzsHop. =m Giant SS Giant Qe Company EIN &F Tempo BiPatenevtes LENAEO° Lz] Rotall Business. Sa Sorvicos: % Pr) Bre cuam ESS. SERVICES eeteereeet operas re Delhaize
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