Koninklijke Ahold Delhaize N.v. · EURONEXT:AD
Koninklijke Ahold Delhaize — Q2 2020 Earnings Presentation
16 slides from Koninklijke Ahold Delhaize's earnings presentation, Aug 5, 2020
Slide 1: Q2 2020 Results
Q2 2020 Results August 5, 2020 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 such as will, reach, goal, 2020, continue(s)/(d), full year, increasing, target, expected, second half of 2020, 2030, 2H20, impa
Slide 3: Highlights
Highlights Frans Muller President & CEO 3
Slide 4: Strong results continued in Q2 largely driven by COVID-19
Strong results continued in Q2 largely driven by COVID-19 • Net sales were €19.1 billion, up 17.1%; up 15.9% at constant exchange rates • U.S. and Europe comp sales growth excluding gas in Q2 were up 20.6% and 10.2%, respectively • Net consumer online sales grew 77.6% in Q2 at constant exchange rate
Slide 5: Continued progress through the COVID-19 crisis
Continued progress through the COVID-19 crisis Large investments made in health and safety measures, improving omnichannel & digital capabilities and in-stock levels Significant COVID-19 Enhancing Omnichannel Improving in-stock levels Investments & Digital Capabilities • COVID-19 costs of ~€330 mill
Slide 6: Highlights: United States
Highlights: United States • 127% online sales growth in Q2; raising full year target to over 75% US online sales growth (from 30%+ initially) in 2020 • 765 Click & Collect points at the end of Q2 (up from 707 in Q1), increasing target to over 1,100 points in 2020 2• Food Lion was our fastest growing
Slide 7: Highlights: Europe
Highlights: Europe • Gained market share in Q2 in both The Netherlands and Belgium; maintained share in CSE 1 • 63.9% net consumer online sales growth in Q2 • Bol.com net consumer online sales growth of 65% in Q2 and added over 4,400 Bol.com merchant partners to the platform, bringing the total to 2
Slide 8: Highlights: Health & Sustainability
Highlights: Health & Sustainability • Publication of inaugural Human Rights Report • Issued first Sustainability Bond Report; full proceeds used to invest in 1 sustainable products, reduce climate impact and promote healthier eating • Announced science-based targets for 2030 to halve carbon emission
Slide 9: Financial Results
Financial Results Natalie Knight CFO 9
Slide 10: Strong Q2 Group performance due largely to COVID-19
Strong Q2 Group performance due largely to COVID-19 Net sales Comparable Sales Growth Net Consumer Online Operating income excl. gas Sales €19.103 16.4% € 1,846 €1.004 in million in million in million vs LY actual rates 17.1% vs LY actual rates 78.4% vs LY actual rates 79.3% vs LY constant rates 15.
Slide 11: Both segments continue to deliver strong performance during COVID-19
Both segments continue to deliver strong performance during COVID-19 Ahold Delhaize The United States Europe Group % change % change % change Q2 Q2 Q2 constant constant constant 2020 rates 2020 rates 2020 rates € million Net Sales 19,103 15.9% 11,856 18.7% 7,247 11.4% Comparable sales growth excl. g
Slide 12: Free Cash Flow remained strong in the quarter
Free Cash Flow remained strong in the quarter 12
Slide 13: Expected impact from Stop & Shop's tentative withdrawal agreement on UFCW pension fund
Expected impact from Stop & Shop’s tentative withdrawal agreement with Local Unions on UFCW International Union – Industry Pension Fund • Tentative agreement improves the security of pension benefits for associates and reduces financial risk for the company • On an pre-tax basis, the withdrawal liab
Slide 14: Raising 2020 outlook due to strong 1H performance
Raising 2020 outlook due to strong 1H performance • COVID-19 continues to create uncertainty in the 2020 outlook, though due to strong 1H performance, raising 2020 underlying EPS outlook to low-to-mid-20% growth from mid-single-digit growth previously • The underlying operating margin outlook will b
Slide 15: Wrap-up
Wrap-up • Continued strong Q2 performance despite significant costs incurred related to COVID-19 • Strong net consumer online sales growth; raising online targets and will reach the €7b net consumer online sales goal in 2020, a year ahead of plan • 2 Raising full year outlook for underlying EPS grow
Slide 16: Thank you
&%) Ahold / Delhaize Thank you FOODMALION §$sToPasHoP. Dene) Ge stns are bolcom” 60TX 9 &F Tempo A) uetenovter TENAEI9P Peapod — Bespin de winkel van ons allemaal Ahold Delhaize Proud companies of 16
Koninklijke Ahold Delhaize — Q2 2020 Earnings Presentation on 6ix