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Koninklijke Ahold Delhaize — Q3 2016 Earnings Presentation
20 slides from Koninklijke Ahold Delhaize's earnings presentation, Nov 17, 2016
Slide 1: Third Quarter 2016 Results
Third Quarter 2016 Results November 17, 2016
Slide 2: Highlights - third quarter 2016
Third Quarter 2016 Results 2 Highlights - third quarter 2016 • Pro forma net sales increased by 2.6% to €14.5 billion (up 2.9% at constant exchange rates) • Continued strong online sales growth, with net consumer sales up 25.1% at constant exchange rates • Price pressure from ongoing deflation in th
Slide 3: Group performance – pro forma
Third Quarter 2016 Results 3 Group performance – pro forma (€ in Millions) Quarter 3 2016 2015 Change Change actual rates constant rates Net sales 14,546 14,176 2.6% 2.9% Net sales excl gas 3.3% Underlying EBITDA 932 897 3.9% 4.3% Underlying EBITDA margin 6.4% 6.3% Underlying operating income 513 49
Slide 4: Performance by segment – pro forma
Third Quarter 2016 Results 4 Performance by segment – pro forma (€ in Millions) Quarter 3 Ahold USA Delhaize America The Netherlands Belgium CSE 2016 Change 2016 Change 2016 Change 2016 Change 2016 Change constant rates constant rates constant rates Net sales 5,210 2.4% 3,888 1.1% 2,900 4.3% 1,213 1
Slide 5: Ahold USA – pro forma results Q3 2016
Third Quarter 2016 Results 5 Ahold USA – pro forma results Q3 2016 Net sales Comparable sales growth ¹ 14 151 -41 -21 • Net sales grew 3.4% excl gas at constant rates 2.0% 1.9% 5,087 • Comparable sales affected by 1.5% 5,109 5,211 deflation of -0.8% 1.1% • Market share improvement 0.6% 0.2% 0.3% dri
Slide 6: Delhaize America – pro forma results Q3 2016
Third Quarter 2016 Results 6 Delhaize America – pro forma results Q3 2016 Net sales Comparable sales growth • Net sales grew 1.1% at constant rates 51 • Comparable sales affected by 3.2% -10 deflation of -1.6% 3.0% -15 • Continued positive volume 2.2% 2.0% 3,847 3,888 growth at both Food Lion and 1.
Slide 7: Netherlands – pro forma results Q3 2016
Third Quarter 2016 Results 7 Netherlands – pro forma results Q3 2016 Net sales Comparable sales growth 4.5% 4.0% 3.5% 3.5% 3.3% 31 3.0% 3.2% 89 2,900 • Net sales grew 4.3% • Online net consumer sales 2,780 growth over 30% • Inflation of +1.0% Q3'15 Comp sales New/closed Q3'16 Q1'15 Q2'15 Q3'15 Q4'15
Slide 8: Belgium – pro forma results Q3 2016
Third Quarter 2016 Results 8 Belgium – pro forma results Q3 2016 Net sales Comparable sales growth 15 5 4.0% 3.9% • Net sales grew 1.7% 2.6% • Comparable sales driven by 1.9% 1,213 1,193 inflation of +2.2% 1.3% • Continued good affiliate performance Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q3'15 Co
Slide 9: CSE – pro forma results Q3 2016
Third Quarter 2016 Results 9 CSE – pro forma results Q3 2016 Net sales Comparable sales growth ¹ • Net sales grew 8.9% at constant 7.0% 40 rates 6.6% 6.0% 68 • Comparable sales growth excl 5.5% -4 gas driven by Greece and 1,335 Romania, flat performance in 3.4% 1,227 Czech and Serbia 2.3% 1,231 • De
Slide 10: Free cash flow generation
Third Quarter 2016 Results 10 Free cash flow generation (€ in Millions) 222 -272 -4 230 -146 -3 27 -66 -39 Free cash flow Operating Change in Income tax Net Interest and Free cash flow Pro forma adj PF Free cash Q3'15 cash flow* working paid investment dividend joint Q3'16 flow Q3'16 capital venture
Slide 11: Net debt evolution
Third Quarter 2016 Results 11 Net debt evolution (€ in Millions) 27 75 1,001 3,615 698 2,718 958 2,020 1,062 Net debt Ahold Net debt Combined net PPA Q2 2016 adj net Capital return Q3 FCF Q3 PPA Q3 2016 net Q2 2016 Delhaize Q2 debt Q2 2016 adjustments debt amortization on debt 2016 debt & other • PP
Slide 12: Buy-back Yen bonds
Third Quarter 2016 Results 12 Buy-back Yen bonds • Buy-back and cancellation of ¥33 billion floating rate notes due May 2031 • Unwinding of the associated currency swap • ¥-notes and swap represent synthetic €299 million long-term liability @7.065% annual interest rate • ¥-notes at purchase price of
Slide 13: Outlook
Third Quarter 2016 Results 13 Outlook • Deflationary environment in the U.S. expected to continue at current levels through the fourth quarter • Pro forma underlying operating margin for 2016 expected to be broadly in line with our year to date performance and slightly ahead of last year • We contin
Slide 14: Business highlights
Third Quarter 2016 Results 14 Business highlights Ahold USA Delhaize America • Five store divestitures completed related to the merger, 10 • Delhaize America completed all store divestitures stores planned for 2017 and the 10 additionally associated with merger announced Richmond stores are being ma
Slide 15: Business highlights
Third Quarter 2016 Results 15 Business highlights The Netherlands Belgium • Albert Heijn launched “beverage guide” for sodas, with • 4th and last wave of New Store Organization color coded information about the amount of sugar, implemented as part of the Transformation Plan; now calories and types o
Slide 16: Business highlights
Third Quarter 2016 Results 16 Business highlights Central & Southern Europe Global Online • Alfa Beta in Greece successfully re-opened the • Bol.com introduced a new delivery option “Delivered Thessaloniki flagship store after intense remodeling, Today“, available for 300,000 articles across all sho
Slide 17: Important dates 2016-2017
Third Quarter 2016 Results 17 Important dates 2016-2017 • Capital Markets Day in London December 7, 2016 • Ahold Delhaize Q4/FY 2016 trading statement January 19, 2017 • Ahold Delhaize Q4/FY 2016 results March 1, 2017 • Annual General Meeting April 12, 2017 • Ahold Delhaize Q1 2017 results May 10, 2
Slide 18: Cautionary notice
Third Quarter 2016 Results 18 Cautionary notice This communication includes forward-looking statements. All statements other than statements of historical facts may be forward-looking statements. Words such as on track, updates, value accretive, reduction, future growth, optimize, pilot, to be or ot
Slide 19: Ahold Delhaize brands
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Slide 20: Thank you
@ Ahold x Delhaize Thank you FOODAALION WE stopeshop See Que — QARNTS. Ne ciant Peaped _bfresh Qe Ahold reccnminer & APGIE,
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