Koninklijke Ahold Delhaize N.v. · EURONEXT:AD
Koninklijke Ahold Delhaize — Q1 2022 Earnings Presentation
28 slides from Koninklijke Ahold Delhaize's earnings presentation, May 11, 2022
Slide 1: Q1 2022 Ahold Delhaize Results
Q1 2022 Ahold Delhaize Results May 11, 2022 Ahold Delhaize – Q1 2022 Results 0
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 and expressions such as accelerate, continu(ed)/(ing), lead, contributing, by, will, next, finalize, fast-growing, start, mitiga
Slide 3: Welcome
Welcome JP O’Meara SVP Investor Relations Ahold Delhaize – Q1 2022 Results 2
Slide 4: Ahold Delhaize's strong global portfolio delivers
• Q1 Group net sales increased 8.3% at actual rates to €19.8 billion. At constant exchange rates, net sales were up 3.6% as food-at-home consumption continues to prove resilient. • Q1 comparable sales excluding gas grew 3.3% (3.9% excluding weather and calendar impacts) in the U.S. and declined 3.1%
Slide 5: Q1 2022 Business Highlights
Q1 2022 Business Highlights Frans Muller, President & CEO Ahold Delhaize – Q1 2022 Results 4
Slide 6: We have built a strong portfolio…
We have built a strong portfolio… Strengthening our positions Ahold Delhaize – Q1 2022 Results 5
Slide 7: Ahold Delhaize – Q1 2022 Results
Ahold Delhaize – Q1 2022 Results 6
Slide 8: 4 priorities for the next 4 years
4 priorities for the next 4 years For customers For operations For our portfolio For Health & Sustainability Serve Accelerate Create Lead customers with the omnichannel the ecosystem for the transformation deeper (digital) transformation & smarter into a healthy & relationships continue to be the cu
Slide 9: Highlights & Outlook: Customer Priority
Highlights & Outlook: • Giant Food and Stop & Shop named among the best loyalty programs in the US by Newsweek Customer Priority • The GIANT Company and Giant Food made healthier eating more affordable by doubling points earned on the purchase of all Guiding Stars-rated items • Albert Heijn offers c
Slide 10: Our brands are laser focused on helping customers manage their spending
Our brands are laser focused on helping customers manage their spending Expanding the assortment and Create great value offers Prioritizing healthy food options availability of high-quality own- spearheaded by omnichannel through Guiding Stars- and brand products and bulk loyalty programs Nutri-Scor
Slide 11: Increasing the prominence of own brands on the shopping journey
Increasing the prominence of own brands on the shopping journey Ahold Delhaize – Q1 2022 Results 10
Slide 12: Our brands continue to consolidate market share gains
Our brands continue to consolidate market share gains Strengthening our positions Net Sales Market Share Growth of Top 5 brands of Ahold Delhaize (ppt change Q4 2021 vs. Q4 2019) €19,774 mln vs LY constant rates +3.6% +1.8 ppt +1.5 ppt Diluted +0.5 ppt +0.5 ppt Underlying EPS €0.55 vs LY current rat
Slide 13: Highlights & Outlook: Operational Priority
Highlights & Outlook: • Stop & Shop launched a new omnichannel program "The Helpful Chef" delivering convenient and affordable meal solutions for Operational Priority customers • Giant Food expands its More for You value campaign introducing bulk items to its offering. The concept will expand to add
Slide 14: Highlights & Outlook: Portfolio Priority
Highlights & Outlook: Portfolio Priority • Albert Heijn and bol.com partner with Budbee to install joint parcel lockers across 700 Albert Heijn stores in the coming two years • Bol.com and Albert Heijn experimented with offering customers an upgrade opportunity to each other’s loyalty programs and w
Slide 15: Highlights & Outlook: Healthy & Sustainable
• Ahold Delhaize USA expanded Guiding Stars nutrition navigation Highlights & Outlook: program across all beverages Healthy & Sustainable • Hannaford commits to be fully powered by renewable energy by 2024 – a commitment that will make it the first US large-scale supermarket business to do so • Bol.
Slide 16: 2022 Outlook: management increases guidance
2022 2022 Outlook: At least 4% Comparable ≥€850 million management Underlying with 2021 level Save for Our increases Operating Margin Underlying EPS Customers guidance ~€2.5 billion ~€1.7 billion Capital Expenditures Free Cash Flow1 Our great local brands continue to support customers to manage thei
Slide 17: Q1 2022 Financial Highlights
Q1 2022 Financial Highlights Natalie Knight, Chief Financial Officer Ahold Delhaize – Q1 2022 Results 16
Slide 18: Our operating model is proving very resilient
Our operating model is proving very resilient Strong global Consistent track Deep-rooted footprint and record of focus on market leading operational delivering what positions excellence matters for our customers Ahold Delhaize – Q1 2022 Results 17
Slide 19: Q1 2022 Underlying Performance
Q1 2022 Underlying Performance 1 Comparable Sales Net Consumer Net sales Growth excl. gas Online Sales € 19,774 0.7% € 2,715 in million in million vs LY constant rates 3.6% U.S. 3.3% E.U. (3.1%) vs LY constant rates (1.0%) Underlying operating Underlying Underlying Net Income from Diluted underlying
Slide 20: Q1 2022 IFRS-reported results
Q1 2022 IFRS-reported results Net sales Online sales € 19,774 € 2,059 in million in million vs LY constant rates 3.6% vs LY constant rates 0.7% IFRS reported IFRS reported Income from Diluted EPS operating income operating margin continuing operations € 818 4.1% € 546 € 0.54 in million in million vs
Slide 21: Comparable sales growth trends
Actuals Comparable sales growth trends Ex weather/calendar Ex. Gas 8.3% 7.8% U.S. Europe 5.0% 4.8% 3.7% 3.9% 3.3% 2.9% 3.1% 1.7% 1.9% 1.8% 2.4% 2.8% 2.90% 1.0% 0.9% 0.0% 0.2% -0.2% -1.5% -1.5% -2.8% -3.1% Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Q1 2022 Q1 2021 Q2 2021 Q3 2021 Q4 2021 FY 2021 Q1 2022
Slide 22: Highlights: United States
Highlights: United States • Net sales grew 5.8% at constant rates, 13.6% at actual rates to €12.2 billion • 4.6% online sales growth in Q1 (constant rates); building on top of the significant 188.3% growth in the same quarter last year • Underlying operating margin was 4.4%, down 0.4 percentage poin
Slide 23: Highlights: Europe
Highlights: Europe • Net sales were €7.6 billion, an increase of 0.3% at constant exchange rates and 0.6% at actual exchange rates • Q1 Europe comparable sales excluding gasoline declined 3.1% as societies opened following tight lockdown measures in the year ago quarter • Underlying operating margin
Slide 24: Highlights: bol.com
Highlights: bol.com • Bol.com gross merchandise value was €1.3 billion in Q1 2022 down 7% compared to the year ago quarter, when growth was over 70% • Bol.com added an estimated 2 points of market share in Q1 2022 • Expansion of bol.com fulfillment center exceeding initial productivity expectations
Slide 25: Q1 Free Cash Flow Returns to Historical Profile
Q1 Free Cash Flow Returns to Historical Profile FCF Q1 2022 vs Last Year, 2020 and 2019 (in €m) 1,228 -1 295 -275 81 -55 9 -75 FCF Q1 2020 -136 -21 FCF Q1 2021 Operating Changes Income Net Net Interest Net Lease FCF Q1 2022 cashflow in Working Tax Paid Investment Repayment FCF Q1 2019 Capital Ahold
Slide 26: Outlook: Key Targets for 2022
Outlook: Key Targets for 2022 Key Financial Targets Original 2022 guidance Updated 2022 guidance Group underlying operating margin ≥ 4.0% Mid-to-low-single- Diluted underlying eps growth1 Comparable to 2021 digit % decline vs 20211 Capital expenditures, net2 ~ €2.5 billion Free cash flow 2 ~ €1.7 bi
Slide 27: First Quarter results
Financial Comparable Business Results Sales Growth Highlights excl. gas 0.7% Giant Food expanded its More for You value campaign introducing bulk items to its U.S. +3.3% EU -3.1% offering Net sales First €19,774 mln The GIANT Company made healthier food more affordable by doubling points earned on G
Slide 28: Thank you
Thank you FOODMALION $sTopasHoP 6 Geianr Giant Qe (| tos GalleGall Peaped Beeigy spn ee se 27° lBeeces Ee Sieivcmm aie DoLCom’ HITE. 44 Tempo @\esmsenoves TENA Sfreshdiect eng seal Ahold Delhaize
Koninklijke Ahold Delhaize — Q1 2022 Earnings Presentation on 6ix