Koninklijke Ahold Delhaize N.v. · EURONEXT:AD
Koninklijke Ahold Delhaize — Koninklijke Ahold — Q3 2014 Earnings Presentation
10 slides from Koninklijke Ahold Delhaize's earnings presentation, 2014
Slide 1: Third quarter 2014 results
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Slide 2: Group highlights Q3 2014
Group highlights Q3 2014 Business and strategic highlights • Improved sales trends in the United States and the Netherlands • Underlying operating margin excluding SPAR acquisition stable versus prior quarter • Program to improve customer proposition in the U.S. rolled out to over half of our stores
Slide 3: Group performance
Group performance (in millions of euros) Quarter 3 Change at 2014 2013 Change constant rates Sales 7,472 7,331 1.9% 1.5% Underlying operating income 285 300 (5.0)% (5.5)% Underlying operating margin 3.8% 4.1% Operating income 274 251 9.2% 9.7% Income from continuing operations 177 165 7.3% 8.0% Net
Slide 4: Performance by segment
Performance by segment (in millions of euros) Ahold USA The Netherlands Czech Republic Q3 2014 Change* Q3 2014 Change Q3 2014 Change* Sales 4,501 0.4% 2,604 1.4% 367 18.7% Underlying operating income 169 (6.4)% 127 (5.9)% (1) (103.2)% Underlying operating margin 3.8 % (0.2) 4.9% (0.4) (0.3)% (1.8) I
Slide 5: Operating cash flow generation
Operating cash flow generation (in millions of euros) Year to date 2014 2013 Change Operating cash flow* 1,526 1,622 (95) Change in working capital (260) (187) (73) Income tax paid (242) (126) (116) Net investment (450) (530) 80 Interest and dividend joint ventures (132) (155) 23 Free cash flow 442
Slide 6: Business highlights: Ahold USA
Business highlights: Ahold USA Program to improve customer Giant Landover: rollout program Own-brand assortment proposition rolled out to 501 stores accelerated to all 168 stores penetration increased by 60 bps to 37.6% • Improving sales trends • Highly competitive market • Targeted price reductions
Slide 7: Business highlights: the Netherlands
Business highlights: the Netherlands Format improvements for larger Albert Heijn widest range of Albert Heijn stores sustainable products •Recognized by Dutch Consumers Association Albert Heijn to go convenience stores remodeled to new format • 10+ % sales uplift after remodeling • 20 stores remodel
Slide 8: Business highlights: Czech Republic
Business highlights: Czech Republic All 14 SPAR supermarkets rebranded • Significant sales uplift with improved gross margin • New replenishment system in DC and stores ALBERT Successful conversion of first compact hyper • All large stores to be converted before Easter 2015 Support office and supply
Slide 9: Outlook
Outlook • Investments in our customer proposition and further development of our formats and assortment will continue to result in improving sales trends • For the remainder of the year, we expect margins in the United States and in the Netherlands to remain broadly at current levels, supported by s
Slide 10: 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