Koninklijke Ahold Delhaize N.v. · EURONEXT:AD
Koninklijke Ahold Delhaize — Q2 2018 Earnings Presentation
21 slides from Koninklijke Ahold Delhaize's earnings presentation, Aug 8, 2018
Slide 1: Second Quarter 2018 Results
Second Quarter 2018 Results August 8, 2018
Slide 2: Q2 Highlights
Q2 Highlights Frans Muller President and CEO
Slide 3: Highlights – Second quarter 2018
Highlights – Second quarter 2018 A solid quarter with sales growth and higher margins, impacted by Easter • Strong growth of earnings and free cash flow • Net sales of €15.5 billion, up 0.9% at constant exchange rates, impacted by the timing of Easter • Net consumer online sales up 23.3% at constant
Slide 4: Financial Results
Financial Results Jeff Carr CFO
Slide 5: Group performance
Group performance € in million Quarter 2 2018 2017 Change Change actual rates constant rates Net sales 15,531 16,121 (3.7)% 0.9% Net sales excl Easter and remedy stores 2.4% Underlying EBITDA 1,059 1,081 (2.1)% 2.5% Underlying EBITDA margin 6.8% 6.7% Underlying operating income 616 628 (2.0)% 2.3% U
Slide 6: United States: Significant impact of the timing of Easter
United States Significant impact of the timing of Easter Net sales Comparable sales growth ² Underlying operating margin € in million 38 3.9% 4.1% 4.3% 4.0% 3.9% -52 -752 -10 2.8% 9,986 9,234 9,211 1.3% 0.7% 1.0% Q2'17 FX Q2'17 Comp New/ Gas Q2'18 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q2'17 Q3'17 Q4'17 Q1'1
Slide 7: United States: Comparable sales, inflation and volumes
United States Comparable sales, inflation and volumes As reported Q1’18 Q2’18 H1’18 Shelf inflation 2.3% 1.6% 1.9% Volumes * 0.5% -1.7% -0.6% Total comparable sales ** 2.8% -0.1% 1.3% Adjusted for Easter *** Q1’18 Q2’18 H1’18 Shelf inflation 2.3% 1.6% 1.9% Volumes * -0.5% -0.6% -0.6% Total comparabl
Slide 8: The Netherlands: Strong consumer online growth
The Netherlands Strong consumer online growth bol.com and ah.nl at 28.9% combined Net sales Comparable sales growth Underlying operating margin € in million 6.0% 99 3 4.8% 5.1% 5.3% 4.9% 4.7% 4.9% 3.6% 3.2% 2.9% 3,434 3,536 Q2'17 Comp New/ Q2'18 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q2'17 Q3'17 Q4'17 Q1'18
Slide 9: Belgium: Strengthening our market position
Belgium Strengthening our market position by ongoing business improvements Net sales Comparable sales growth Underlying operating margin € in million 17 7 4.1% 3.1% 1,286 2.6% 2.7% 2.3% 1,262 1.4% 1.0% 0.0% 0.0% Q2'17 Comp New/ Q2'18 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 sales
Slide 10: Central and Southeastern Europe
Central and Southeastern Europe Continued strong sales growth in Romania and Czech Republic Net sales Comparable sales growth ¹ Underlying operating margin € in million 5.4% 19 7 34 4.3% 3.8% 3.6% 3.0% 1,439 1,458 1,498 1.7% 0.5% 0.7% 0.5% 0.3% Q2'17 FX Q2'17 Comp New/ Q2'18 Q2'17 Q3'17 Q4'17 Q1'18
Slide 11: Free Cash Flow
Free Cash Flow Further improvements in working capital and lower cash tax € in million 2018 2017 Q2 H1 Q2 H1 Operating cash flow 1,018 2,025 1,054 2,055 Change in working capital 162 (41) 7 (339) Income tax paid – net (60) (94) (189) (217) Cash from cont. operations 1,120 1,890 872 1,499 Investments
Slide 12: Synergies and One-time costs
Synergies and One-time costs On track to meet targets and guidance for 2018 € in million Quarter 2 2018 2017 Incremental United States 67 37 30 Europe 24 16 8 Global Support Office 8 8 - Ahold Delhaize Group Synergies 99 61 38 € in million Q2 Costs to date Expected full costs Integration costs 26 31
Slide 13: Business Highlights
Business Highlights Frans Muller President and CEO
Slide 14: Inspiring customers and supporting a healthy lifestyle
Inspiring customers and supporting a healthy lifestyle • Albert Heijn’s My Nutritional Value online tool tracking sugar, salt and calories for the basket, also helping to find healthier alternatives • U.S. based natural brand Nature’s Promise, expands own product range to Europe • Delhaize ran a ver
Slide 15: Developing and expanding our digital programs
Developing and expanding our digital programs • Peapod Digital Labs driving innovation, expertise and scale, creating a shared U.S. e-commerce infrastructure • All U.S. brands are partnering with IRI on data analytics, using Point of Sale, Customer and Supply Chain data • Delhaize Serbia launched a
Slide 16: Offering Convenient shopping and easy Fresh meal solutions
Offering Convenient shopping and easy Fresh meal solutions • Meal kits and freshly made meals, with great quality and at affordable prices • Instore kitchens at Hannaford, Albert Heijn and Mega Image, offering made-to-order food that customers can take out or enjoy in the store • Piloting smart lock
Slide 17: Investing in continued strong growth at bol.com
Investing in continued strong growth at bol.com • Third party sales up close to 50% versus last year, 40% of total consumer sales – Pets Place selected bol.com as online platform, now in top Third party sellers • Successful continuous saving program for customers on daily needs subscription – “The m
Slide 18: Wrap up & Outlook 2018
Wrap up & Outlook 2018 • Strong growth of earnings and free cash flow • Net income up 15.3% to €410 million; 20.0% at constant exchange rates • Solid sales growth of 2.4%*, adjusted for the timing of Easter and remedy stores • U.S. sales trend expected to improve in Q3 • Net consumer online sales up
Slide 19: 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 on track, target, guidance, 2018, strengthen, driving, investing, improvements, expanding, ongoing, outlook, expected, r
Slide 20: Proud companies of Ahold Delhaize
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Slide 21: Thank you
ZS) Ahold XW Delhaize Thank you DewHArze FooDAALION — SY stopeshop: ala wants LG cint Peaped’ QQ (es C4 1e doce GalleGall polcom® albert f=) MAXI] 47 Tempo Bogiabnoutes | ENA F000 ba Ahold Delhaize Proud companies of
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