Slide 1: Results Q4/FY 2019
Results Q4/FY 2019 February 12, 2020
Slide 2: Highlights
Highlights Frans Muller President & CEO
Slide 3: Strong EPS growth and free cash flow generation in the fourth quarter
Ahold Delhaize reports strong EPS growth and free cash flow generation in the fourth quarter Fourth quarter and full year results: • Underlying EPS grew 17.1% in Q4 and 8.4% in 2019 • Net sales were €17.4 billion, up 3.1% in Q4 and up 2.3% in 2019* • Net consumer online sales grew 30.1% in Q4 and 28
Slide 4: Financial Results
Financial Results Jeff Carr CFO
Slide 5: Group performance
Group performance € in million Quarter 4 Full year 2019 2018* Change Change 2019 2018* Change Change actual rates constant rates actual rates constant rates Net sales 17,378 16,547 5.0% 3.1% 66,260 62,791 5.5% 2.3% Operating income 749 685 9.4% 7.4% 2,662 2,623 1.5% (1.7)% Income from continuing 544
Slide 6: Performance by segment (Quarter)
Performance by segment € in million Quarter 4 USA The Netherlands Belgium CSE 2019 Change* 2019 Change* 2019 Change* 2019 Change* Constant rates Constant rates Net sales 10,368 2.7% 3,976 4.5% 1,341 0.2% 1,694 5.4% Operating income 443 (1.5%) 197 8.4% 39 13.1% 94 13.8% Underlying operating 442 (6.9%
Slide 7: Performance by segment (Full year)
Performance by segment € in million Full year USA The Netherlands Belgium CSE 2019 Change* 2019 Change* 2019 Change* 2019 Change* Constant rates Constant rates Net sales 40,066 1.5% 14,810 4.2% 5,096 - 6,288 4.9% Operating income 1,668 (3.0)% 765 4.7% 128 (1.5%) 246 (5.4)% Underlying operating 1,712
Slide 8: Free cash flow
Free cash flow € in million Quarter 4 Full Year 2019 2018 restated* 2019 2018 restated* Operating cash flow 1,446 1,372 5,483 5,189 Changes in working capital 532 456 325 451 Income tax paid – net (24) (148) (358) (280) Cash from cont. operations 1,954 1,680 5,450 5,360 Capital expenditures – net (5
Slide 9: Strong dividend growth from 2016 through 2019
Strong dividend growth from 2016 through 2019 € 0.80 € 0.76* € 0.75 10% CAGR € 0.70 € 0.70 +8.6% € 0.65 € 0.63 € 0.60 +11.1% € 0.57 € 0.55 +10.5% € 0.50 +9.6% € 0.45 € 0.40 2016 2017 2018 2019 • We propose a cash dividend of €0.76 per common share for the financial year 2019, up 8.6% from last year
Slide 10: 2020 Outlook
2020 Outlook • Underlying operating margin for the group will be broadly in line in 2020 versus 2019, with no significant impact from the 53rd week* • Underlying operating margin would be up from the prior year excluding the impact of the U.S. supply chain transition expenses and non cash service ch
Slide 11: Highlights
Highlights Frans Muller President & CEO
Slide 12: Highlights United States
Highlights United States • Online sales growth accelerated to 42.7% in Q4, and we met our 2019 guidance outlook of over 20% growth • Announced supply chain transformation initiative, a three-year strategy to move U.S. supply chain into a fully integrated, self- distribution model which will reduce c
Slide 13: Expanding our leading omnichannel position on the East Coast
Expanding our leading omnichannel position on the East Coast • Strong platform for continued growth in U.S. online sales, with 42.7% growth and 692 click & collect locations in Q4; 24.3% growth in 2019 at constant exchange rates • Focus on expanding upon the omnichannel leadership position of our Ea
Slide 14: Highlights Europe
Highlights Europe • Net consumer online sales were up 27.5% in the Netherlands, at bol.com net consumer online sales grew by 28.7% in Q4 • Market share at Albert Heijn was up significantly year over year in the fourth quarter, an improving trend over previous quarters; 2019 ended roughly flat at 34.
Slide 15: Progress since November 2018 Capital Markets Day (1/3)
Progress since November 2018 Capital Markets Day (1/3) Group financial guidance Status as of FY 2019 Low single digit EPS growth (post-strike EPS growth of 8.4% including strike ✓ guidance) impact Free cash flow ~€1.8 billion in 2019 Free cash flow of €1.8 billion in 2019 ✓ Slightly lower underlying
Slide 16: Progress since November 2018 Capital Markets Day (2/3)
Progress since November 2018 Capital Markets Day (2/3) Re-imagine Stop & Shop Status as of FY 2019 Sales uplift from remodeled stores of 4%-6% Sales run-rate in Q4 in line with year 1 ✓ in year 1; 2%-4% in year 2; 2% in year 3 expectations Remodeled 42 stores in Hartford and X Remodel 60 – 80 stores
Slide 17: Progress since November 2018 Capital Markets Day (3/3)
Progress since November 2018 Capital Markets Day (3/3) eCommerce (2/2) Status as of FY 2019 Bol.com net consumer online sales of ~€3.5 Bol.com net consumer online sales of ✓ billion in 2021 €2.8 billion in 2019, on track for 2021 Bol.com third party sales at >45% of total Third party sales of 47% in
Slide 18: Wrap-up
Wrap-up • Ended 2019 on a high note with strong Q4 results and significant growth in online sales, particularly in the U.S. • Exceeded 2019 underlying EPS growth guidance and met the €1.8 billion free cash flow target in 2019 • Proposed dividend of €0.76 for full year 2019, up 8.6% versus last year
Slide 19: Q&A
Ga Ahold XI Delhaize FOODAALION — SsTopasHor. <a elaive mans ==SGiant Peaped yw» [Ha] tos GalleGall _bolcom” albert (BIIND «=F Tempo © azeterewres, «= TENA 092 Ahold Proud companies of Delhaize
Slide 20: Thank you
Click to edit subtitle Thank you
Slide 21: 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 outlook, proposed, target, constant, will be, would be, goal, the full year, expect, three-year strategy, continues, exp