Safeway — Investor Presentation (December 2004)
13 slides from Safeway's investor presentation, Dec 8, 2004
Slide 1: Est. 2004 EPS Reconciliation
Est. 2004 EPS Reconciliation $1.95 (.58) (.06) (.05) $1.26 2004 EPS Guidance1 Strike Impact2 Dominick’s Closures2 NorCal Health & Welfare2 Estimated 2004 Reported EPS Per 3Q Earnings Call Guidance (Excluding Strike And Other Unusual Items) Estimated Full Year EPS Impact Investor Conf2004
Slide 2: Financial Guidance For 2005
Financial Guidance For 2005 (2004-2005) $ 1.50%$1.60* 1.2% -1.5% 0 -10 - BPs 50 – 60 BPs 50 – 60 BPs ** $ 500—700 EPS Est. (w/o Stock Option Expense) Non-Fuel ID Sales Gross Margin Improvement O&A Margin Improvement Free Cash Flow ($million) Quarterly EPS Expected To Build Through Year (Excluding Se
Slide 3: EPS Guidance Explanation
EPS Guidance Explanation (2004-2005) $1.50 -$1.60* $ 0.20 $ 0.20 $ 1.95 $ 1.95 2005 EPS Guidance Vons Shortfall FromPre-Strike Levels Marketing Investments Total 2004 Guidance *Excludes Stock Option Expense Of $0.09 Per Share InvestorConf2004
Slide 4: 2004 Operating Results
2004 Operating Results $Millions* 36 Wks 24,297 0.80 1,526 36 Wks 24,568 1.18 1,417 $ Sales Operating Profit EPS Net Cash Flow From Operations Free Cash Defined As Cash From Ops Less Cash Used By Investing Activities *Except For EPS InvestorConf2004
Slide 5: 2004 Operating Results (Adjusted)
2004 Operating Results $Millions* Adjusted $ 36 Wks2003 24,568 1. 1,417 36 Wks $1,184 1.37 1,743 1,096 Chg. (125) NA (0.03) Sales Operating Profit EPS Net Cash Flow From Operations Free Cash 1Defined As Cash From Ops Less Cash Used By Investing Activities 2Excluded Item Not in Guidance – Vons Strike
Slide 6: Free Cash Flow
Free Cash Flow* ($ Millions) $211 $248 $420 $513 $639 $815 $879 Q3-04 YTD *C/F From Operating Activities Less C/F From Investing Activities Plus Cash Used For Acquisitions InvestorConf2004
Slide 7: Total Debt
Total Debt ($ Billions) $5.0 $7.0 $6.5 $7.4 $8.4 $7.8 $7.2 ‘98 ‘99 ‘00 ‘01 ‘02 ‘03 3Q04 Dominick’s Carr’s Texas & Share Repurchase Genuardi’s Share Repurchase
Slide 8: Debt Portfolio
Debt Portfolio –3Q04 Balances -$M Floating Rate Public Debt $150 Mortgages & IRBs $51 Swaps $800 Cap Leases$688 Fixed Rate Public Debt $5,553 Total Debt =$7,242 Floating = 14% / Fixed = 86% (Avg.Cost = 6.53%) (Avg.Cost = 2.30%) Rates Floating Rate Public Debt 2.16% Swaps 2.31% Mortgages & IRBs 5.96%
Slide 9: Fuel Sales
Fuel Sales Volume ($ Million) 2,000 1,800 1,600 1,400 1,200 1,000 $1.5 $133.1 $334.8 $637.9 $1,299.2 $1,876.6 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04E Annual Revenue Note: Includes Non-Core Divisions Investor Conf2004
Slide 10: Cash Capital Spending
Cash Capital Spending $Billions $1.3 $1.6 $1.8 $1.5 $0.9 ‘99 ‘00 ‘01 ‘02 ‘03 $1.3 $1.4 $1.6 $1.8 $1.3 $1.3 $1.3 ‘04E ‘05E ‘06E ‘07E New Rem Maj Rem Min Investor Conf2004
Slide 11: Cash Flow Improvement From Capital Spend
Cash Flow Improvement From Capital Spend $Millions $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 $1,103 6 Yrs Audited Capital $110 Unaudited Capital Benefits Wages Pension W/C ($1,040) O&A Increases Note: Excludes Divisions Acquired After 1997 *$4.6 Billion Of Capital, IRR Of 25.3% Investor Conf2004
Slide 12: Cash Capital Spending
Cash Capital Spending $ Millions $1,800 $1,500 $1,200 $900 $600 $300 $0 $1,426 33% 67% 1998-2002Average $936 39% 61% $1,300 36% 64% 2004E $1,400 20% 80% 2005E Store Capital Infrastructure Investor Conf2004
Slide 13: Long Range Outlook
Long Range Outlook 4% 2% - 4.50% -5.50% 2.50% 10%+ Non-Fuel Sales ID’s Operating Profit Margin Depreciation Annual EPS Growth Investor Conf2004