Koninklijke Ahold Delhaize N.v. · EURONEXT:AD
Koninklijke Ahold Delhaize — Ahold Delhaize — Investor Day (2024)
103 slides from Koninklijke Ahold Delhaize's investor day presentation, 2024
Slide 1: Strategy Day 2024: Opening & Group Strategy Update
strategy day 2024 opening & group strategy update Frans Muller
Slide 2: Cautionary notice
cautionary notice This communication contains information that qualifies as inside information within the properties that the Company owns or leases; competitive labor markets, changes in meaning of Article 7(1) of the EU Market Abuse Regulation. labor conditions and labor disruptions; increases in
Slide 3: Welcome to our 2024 Strategy Day
welcome to our 2024 strategy day Frans Muller Jolanda Poots-Bijl JJ Fleeman Wouter Kolk President and Chief Chief Financial Officer Chief Executive Officer Chief Executive Officer Executive Officer Ahold Delhaize USA Europe and Indonesia Ben Wishart Natalia Wallenberg Linn Evans Alex Holt Chief Tech
Slide 4: Welcome to our 2024 Strategy Day
welcome to our 2024 strategy day 01 02 03 04 05 Opening U.S. EU&I Deep Financial & Group Regional Regional Dives Ambitions Strategy Strategy Strategy • People & Communities • Own Brand • Technology & AI 4 Ahold Delhaize - Strategy Day 2024
Slide 5: Successfully serving customers for more than 150 years
our brands have been successfully serving customers for more than 150 years 5 Ahold Delhaize - Strategy Day 2024
Slide 6: 63M weekly customers, 16 great local brands
63M weekly 16 great local >7,700 customers brands stores 9 countries, >400,000 triple A MSCI 3 continents associates rating relentless omnichannel deeply rooted innovation offerings in communities 6 Ahold Delhaize - Strategy Day 2024
Slide 7: Our vision: your trusted local food retailer
our vision together, we are your trusted local food retailer 7 Ahold Delhaize - Strategy Day 2024
Slide 8: Our purpose
our purpose inspiring everyone to eat and live better, for a healthier future for people and planet 8 Ahold Delhaize - Strategy Day 2024
Slide 9: Bringing our purpose to life in our local communities
bringing our purpose to life in The Global our local communities FoodBanking Network sponsorship >€240m in charitable cash, product and food donations1 Note: (1) Total donation amount includes charitable, cash equivalent of product and food donations 9 Ahold Delhaize - Strategy Day 2024
Slide 10: Our ambitions are realized by our people
our ambitions are realized by our people thriving people 10 Ahold Delhaize - Strategy Day 2024
Slide 11: Our values
our values teamwork integrity care courage humor 11 Ahold Delhaize - Strategy Day 2024
Slide 12: Our foundation has positioned us well for future success
our foundation has positioned us well for future success 2016 - 2018 2019 - 2023 2024+ better leading growing together together together executed post-merger ambitions unlocked value by further leveraging refreshed purpose, vision, strategic priorities created the new culture and ways of transatlant
Slide 13: Our strategy has driven a series of big wins
our strategy has driven a series of big wins selected examples (2019-2023) evolved foundational built award-winning loyalty people win programs capabilities achieved triple A rating strengthened leading transformed our business by MSCI positions in e-commerce model for profitable growth supported ou
Slide 14: Strong performance across all key metrics
we have demonstrated strong performance across all key metrics incremental sales of free cash flow healthy sales >€22bn >€8bn 54.8% since 2019 2020-2023 of total (+6.9pp vs 2019) growing net consumer growing underlying EPS food waste reduction online sales 27% CAGR 10% CAGR 37% since 2019 vs 2016 ba
Slide 15: Our growing together strategy
our growing our together strategy strategic our priorities purpose our vision our our values growth our model ambitions 15 Ahold Delhaize - Strategy Day 2024
Slide 16: Our growth model
our growth model 16 Ahold Delhaize - Strategy Day 2024
Slide 17: Our strategic priorities
our strategic priorities trusted healthy product communities & planet vibrant our customer experiences growth model driving customer portfolio & operational thriving innovation excellence people 17 Ahold Delhaize - Strategy Day 2024
Slide 18: Deliver trusted products, vibrant customer experiences
80% invest in our winning CVP ~45% deliver trusted products, vibrant customer experiences and support healthy communities & planet own brand food share omnichannel loyalty sales 18 Ahold Delhaize - Strategy Day 2024
Slide 19: Densify and grow markets
€55bn net total sales €34bn net total sales densify and grow markets #1 #2 grow customer #1 reach and #1 market density #1 #1 #1 #6 with portfolio #1 #2 #2 excellence #2 #1 #2 #1 AD USA AD EU&I Note: Relative Market Share position only included for Grocery Retail (i.e. excluded for Bol.com, Etos, an
Slide 20: Grow customer reach and market density
densify and grow markets grow customer reach and market density with portfolio excellence densify & expand 20 timely interventions actively pursue markets when and where bolt-on acquisitions required and partnerships 20 Ahold Delhaize - Strategy Day 2024
Slide 21: Drive growth through innovation
unlock deeper test, learn, accelerate seize circular explore new data analytics scale retail media business model capability and innovate for growth & AI mechanization opportunities business model and efficiency capabilities and innovation automation throughout the drive growth ecosystem through inn
Slide 22: Deliver for healthy communities & planet
deliver for our healthy net zero scope 1 & 2 by 2040 communities scope 3 by 2050 food waste & planet 50% reduction by 20303 healthy sales scope 1 & 2 material growth 50% across the full store reduction by 2030¹ virgin plastic scope 3 30% / 42% 5% reduction across own brands FLAG / non-FLAG reduction
Slide 23: Save for our customers to reinvest
save for our customers sourcing alignments winning supply with chain tech & AI leverage and lower our cost base store to reinvest in our operations CVP, tech solutions and sustainability commitments 23 Ahold Delhaize - Strategy Day 2024
Slide 24: Our ambitions are realized by our people
our ambitions are realized by our people thriving people 24 Ahold Delhaize - Strategy Day 2024
Slide 25: 2025-2028 financial ambitions
high-single-digit EPS growth 4% growth 4% UOM (diluted underlying EPS) CAGR net sales on average intention for €3bn €5bn savings €1bn complementary save for our customers annual share buy-back1 income streams increasing ~3% €9bn dividend1 gross cash capex free cash flow on an annual basis with 40-50
Slide 26: Our growing together strategy
our growing together strategy our our purpose growth inspiring everyone to eat and live better, for a model healthier future for people and planet our vision together, we are your profitable growth… trusted local food retailer industry leading margins strong free cash flow growing shareholder return
Slide 27: Ahold & Delhaize USA
strategy day 2024 ahold & delhaize JJ Fleeman 6...
Slide 28: Welcome to our 2024 Strategy Day
welcome to our 2024 strategy day 01 02 03 04 05 Opening U.S. EU&I Deep Financial & Group Regional Regional Dives Ambitions Strategy Strategy Strategy • People & Communities • Own Brand • Technology & AI 28 Ahold Delhaize - Strategy Day 2024
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Slide 30: ADUSA brands form the largest grocery retail group on the East Coast
the local brands of ADUSA comprise the largest grocery retail group on the East Coast consistent >2040 1bn UOM performance stores across 24m 19 states meals customer trips per week >100 donated since 2020 years of heritage digitally engaged customers since 2019 2x 5 great local $59bn U.S. sales key
Slide 31: Deep local connections and scale are a winning combination
deep local connections & significant scale is a winning combination driving relative market share and brand strength >7% sales CAGR ‘19 – ‘23 >43% e-commerce sales CAGR ‘19 – ‘23 >85% DMAs1 with positive share growth since ‘19 Note 1: DMA = designated market area 31 Ahold Delhaize - Strategy Day 202
Slide 32: Bold steps taken to strengthen the U.S. business
bold steps taken to strengthen the U.S. business are delivering results 85% supply chain volume self distributed built & scaled a proprietary developed the click & collect and e-commerce platform - PRISM delivery infrastructure >99% customers with access to pick-up or transitioned to a self-distribu
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Slide 34: Our strategic priorities
our strategic priorities trusted healthy product communities & planet vibrant our customer experiences growth model driving customer portfolio & operational thriving innovation excellence people 34 Ahold Delhaize - Strategy Day 2024
Slide 35: Focused portfolio approach to densify and grow markets
densify and grow markets we have a focused portfolio approach to expand our winning positions ~1000 leading and optimize new stores & remodels to with own brands to further high quality expand our reach drive our winning CVP growth over the next 4 years >$1bn growing price investments to further com
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Slide 42: The GIANT Company focus across the mid-Atlantic
densify and grow markets across the mid- Atlantic region, The GIANT Company is focused on… fresh, modern, strategic price new stores and sustainable investments and formats remodels delivering differentiating freshness savings & with kindness rewards 42 Ahold Delhaize - Strategy Day 2024
Slide 43: Investments to improve the Stop & Shop brand
densify and grow markets we’ve made investments to improve the Stop & Shop brand and have launched customer-centric offerings remodeled stores with expanded services strengthened the value proposition e-commerce efficiency 43 Ahold Delhaize - Strategy Day 2024
Slide 44: Stop & Shop is focusing on its next phase
densify and grow markets Stop & Shop is focusing on its next phase improving the cost structure optimizing the footprint delighting the customer through CVP differentiation 44 Ahold Delhaize - Strategy Day 2024
Slide 45: Delivering customer experience to grow trips and baskets
invest in our winning CVP the delivery of our customer experience will grow trips & baskets fresh and unique personalized one-of-a-kind assortment value every day, omnichannel available in every every way experiences and shop solutions 45 Ahold Delhaize - Strategy Day 2024
Slide 46: Differentiate on quality with fresh, local, healthy products
invest in our winning CVP we differentiate on quality with fresh, local, fresh local healthy & healthy & sustainable sustainable trusted products own brands of ADUSA 95% baskets with own brand products 46 Ahold Delhaize - Strategy Day 2024
Slide 47: Personalized everyday value
everyday value personalized loyalty rewards & coupons invest in our winning CVP personalized everyday value delivering everyday low prices and value through award-winning loyalty programs >$1bn investments in price by 2028 47 Ahold Delhaize - Strategy Day 2024
Slide 48: Personalized, flexible, delightful experience
personalized proprietary algorithms to create a one-of-a-kind shopping experience flexible invest in our winning CVP leveraging GenAI to anticipate customer’s preferences to grow we’re leading with digital and baskets while improving the experience omnichannel capabilities to delightful create a mod
Slide 49: Building and accelerating a strong media business
innovate for growth and efficiency we’ve built a strong media business and we’re accelerating it unique shoppable content across several mediums for complementary income streams a truly connected shopping experience make the shopping experience better for the customer... inspirational offers and con
Slide 50: Focused on operating efficiently
leverage and lower our cost base we’re focused on operating efficiently, generating fuel simplified supply chain leverage save for our to fund our U.S. operating model & e-commerce efficiencies tech & AI customer growth strategy 50 Ahold Delhaize - Strategy Day 2024
Slide 51: Committed to supporting healthy communities & the planet
we’re committed to cony street location in Augusta, Maine supporting our platinum LEED certified & first supermarket in the U.S. to achieve the Living Building Challenge Core for Interiors healthy communities Certification & the planet healthy communities 1bn meals donated since 2020 healthy people
Slide 52: Passionate people are at the center of everything we do
passionate people are at the center of everything we do thriving people uniquely local, trusted retailers unlocked by scale & leading capabilities deeply rooted in communities
Slide 53: ADUSA 2028 ambitions
>50% reduce operating costs lead with own brands digital engagement by 2028 >$1bn investments in price by 2028 grow complementary ~1000 new stores & income streams remodels 53 Ahold Delhaize - Strategy Day 2024
Slide 54: Our growing together strategy
our growing together strategy our our purpose growth inspiring everyone to eat and live better, for a model healthier future for people and planet our vision together, we are your profitable growth… trusted local food retailer industry leading margins strong free cash flow growing shareholder return
Slide 55: EU & I Regional Strategy Update
strategy day 2024 EU & I regional strategy update Wouter Kolk
Slide 56: Welcome to our 2024 Strategy Day
welcome to our 2024 strategy day 01 02 03 04 05 Opening U.S. EU&I Deep Financial & Group Regional Regional Dives Ambitions Strategy Strategy Strategy • People & Communities • Own Brand • Technology & AI 56 Ahold Delhaize - Strategy Day 2024
Slide 57: AD EU&I is a front-running retail organization
AD EU&I is a front-running retail organization >5600 stores across Europe >150 years of heritage 11 great local brands ~175k associates 57 Ahold Delhaize - Strategy Day 2024
Slide 58: Continued growth across our markets
we have continued to drive growth across our markets €34bn net total sales 7% sales (2023) growth #1 #2 CAGR (’19 – ’23) #1 #1 store growth CAGR 3% #2 #2 #6 (’19 – ’23) #1 #1 or #2 14% #2 #1 leadership position e-commerce penetration across almost all of (including bol, 2023) our markets 58 Ahold De
Slide 59: Our past strategy has driven a series of big wins
our past strategy has driven a series of big wins 7000 price favorites 54% omnichannel loyalty scaled across sales europe (in 2023) scaled own brands from NL to other parts of Europe increased omnichannel engagement with customers 2x save for our customers (since 2019) 1.5x e-commerce 5x complementa
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Slide 61: Our growing together strategy
our growing together strategy our our purpose growth inspiring everyone to eat and live better, for a model healthier future for people and planet our vision together, we are your profitable growth… trusted local food retailer industry leading margins strong free cash flow growing shareholder return
Slide 62: Purpose, local leadership and regional reach
what makes us stand out from others is our purpose, local leadership and regional reach purpose deliver differentiated driven experiences locally scale capabilities regionally 62 Ahold Delhaize - Strategy Day 2024
Slide 63: Engaging with our customers deeper than ever
additional a unique +~10% features for experience spend by deeper for every app users engagement user 1.5x invest in our winning CVP engaging with our customers deeper than ever before 2023 2028 app first digital personalization & monthly active app engagement relevance users 63 Ahold Delhaize - Str
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Slide 67: Trusted products are a key part of our CVP
price favorites joint development more value invest in our winning CVP healthier choices trusted products across EU to maximize own are a key part of differentiation support healthier serve more brand our CVP customers: capabilities choices: fruit & affordable & be more vegetable accessible innovati
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Slide 71: Leading the way to a healthy & sustainable food system
invest in our winning CVP we lead the way to a healthy & sustainable food system customer low-carbon supplier & farmer engagement footprint products engagement supporting customers to informing customers working closely with our make healthier choices on the impact of their extensive supply chain to
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Slide 73: Benelux: the advanced growth model
Benelux the advanced growth model densify and grow markets we are leaders in the Benelux and are well positioned for continued growth >Im members in the paid strongest retail brand in Benelux 100% of Delhaize stores sold loyalty program, premium (9x in a row) to local entrepreneurs 73 Ahold Delhaize
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Slide 76: bol key metrics
€5.8bn strongest local retail brand & 7% active GMV CAGR of 19% B-Corp status customers (2019 – 2023) growth CAGR (2019-2023) 45% UOP 12.1% growth CAGR advertising via bol CAGR (2019-2023) (2019-2023) >50K partners 50% ~38m logistics via bol CAGR up 30K since 2019 (2019-2023) products 76 Ahold Delha
Slide 77: CSE: the growth opportunity
CSE the growth opportunity densify and grow markets we built a portfolio of brands that create impact for our customers & communities harmonized top employer multiple organization in most CSE markets sustainability to drive efficiencies awards 77 Ahold Delhaize - Strategy Day 2024
Slide 78: Regional strengths: combining local propositions with regional scale
densify and grow markets regional strengths we combine highly local propositions with regional scale to unlock value stronger source enhanced product at scale customer portfolio experience 78 Ahold Delhaize - Strategy Day 2024
Slide 79: Benelux and CSE future plans
densify and grow markets Benelux CSE the advanced growth model the growth opportunity our future plans are being supported by deep local engagement and the scale of our regional portfolio grow through leading complete operating integrate Profi & grow omnichannel model model turnaround & regional pre
Slide 80: Planned acquisition of Profi
Profi grow regional presence densify and grow markets our planned acquisition of Profi is a great proof point of how we will grow regional Mega Image Profi presence densify strong strengthens existing markets with geographical format fit our relevance in the CSE region and complementary complimentar
Slide 81: Capture growth through innovation
retail media & insights monetization exploring new growth retail media innovate for growth growth and efficiency capture growth >2x through refurbished at bol innovation 2023 2028 waste-to-value at Albert Heijn 81 Ahold Delhaize - Strategy Day 2024
Slide 82: Unlock a new level of operational excellence
leverage and lower our cost base unlock a new level of operational excellence immediate future proof scale partner models and efficiency efficiency gains operations to maximize efficiency joint automation affiliate sourcing & AI model 82 Ahold Delhaize - Strategy Day 2024
Slide 83: EU&I 2028 ambitions
return to be the #1 in every market for our historical customers profit levels & employees leverage existing infrastructure for 15% square meter expansion new revenue opportunities in our footprint unlock efficiencies 50% growth in monthly >2x from scaled sourcing, automation & AI active app users g
Slide 84: Our growing together strategy
our growing together strategy our our purpose growth inspiring everyone to eat and live better, for a model healthier future for people and planet our vision together, we are your profitable growth… trusted local food retailer industry leading margins strong free cash flow growing shareholder return
Slide 85: Growing together
strategy day 2024 growing together Jolanda Poots-Bijl
Slide 86: Welcome to our 2024 Strategy Day
welcome to our 2024 strategy day 01 02 03 04 05 Opening U.S. EU&I Deep Financial & Group Regional Regional Dives Ambitions Strategy Strategy Strategy • People & Communities • Own Brand • Technology & AI
Slide 87: Our growing together strategy
our growing together strategy our our purpose growth inspiring everyone to eat and live better, for a model healthier future for people and planet our vision together, we are your profitable growth… trusted local food retailer industry leading margins strong free cash flow growing shareholder return
Slide 88: 2021 investor day promises
+€10bn sales vs. 2022 2021 investor €4bn S4OC savings from 2022-2025 day promises CAPEX at 3.0% of sales between 2022-2025 (adjusted in 2022 from 3.5%) UOM of ≥4% high-single-digit CAGR underlying EPS growth 2023-2025 financial guidance €7.5bn free cash flow 2022-2025 (adjusted in 2022 from 6bn) 2x
Slide 89: 2025-2028 financial ambitions
high-single-digit EPS growth 4% growth 4% UOM (diluted underlying EPS) CAGR net sales on average intention for €3bn €5bn savings €1bn complementary save for our customers annual share buy-back1 income streams increasing ~3% €9bn dividend1 gross cash capex free cash flow on an annual basis with 40-50
Slide 90: Our growth model
our growth model 90 Ahold Delhaize - Strategy Day 2024
Slide 91: Deliver trusted products, vibrant customer experiences
invest in our winning CVP deliver trusted products, vibrant customer experiences and support healthy grow own brand grow healthy sales enhance price position communities & planet ~45% own brand food share 91 Ahold Delhaize - Strategy Day 2024
Slide 92: Grow customer reach and market density
densify and grow markets grow customer reach and market density with portfolio excellence densify & expand 92 markets actively pursue bolt-on acquisitions timely interventions when and where and partnerships required 80% ~30m omnichannel monthly active loyalty sales users 92 Ahold Delhaize - Strateg
Slide 93: Drive growth through innovation and new business
unlock test, learn, accelerate seize circular capture new deeper data scale retail media business capability innovate for growth analytics & AI mechanization model and business capabilities and opportunities model and efficiency automation innovation drive growth across the ecosystem through innovat
Slide 94: Leverage and lower our cost base
leverage and lower our cost base lower our cost and unlock cost of goods logistics & store general and funding to fuel sold distribution operations administrative growth €5bn save for our customer 94 Ahold Delhaize - Strategy Day 2024
Slide 95: Fueling growth through capital expenditure
2023 2028 new stores new stores DigiTech maintenance & others distribution DigiTech remodels fueling growth through capital expenditure ~3% gross cash capex 95 Ahold Delhaize - Strategy Day 2024
Slide 96: Our purpose and sustainability targets
our purpose inspiring everyone to eat and live better, for a healthier future for people and planet material growth 50% reduction 5% reduction in virgin in healthy sales % in food waste plastic by 2025 across the full store by 2030 across own brand versus 2021 baseline versus 2016 baseline 30% FLAG
Slide 97: 2025-2028 financial ambitions
high-single-digit EPS growth 4% growth 4% UOM (diluted underlying EPS) CAGR net sales on average intention for €3bn €5bn savings €1bn complementary save for our customers annual share buy-back1 income streams increasing ~3% €9bn dividend1 gross cash capex free cash flow on an annual basis with 40-50
Slide 98: Raising the bar on free cash flow delivery
>€8bn >€8bn €9bn raising the bar on free cash flow delivery 2017-2020 2021-2024 2025-2028 cumulative free cash flow delivery 98 Ahold Delhaize - Strategy Day 2024
Slide 99: 2025-2028 financial ambitions
high-single-digit EPS growth 4% growth 4% UOM (diluted underlying EPS) CAGR net sales on average intention for €3bn €5bn savings €1bn complementary save for our customers annual share buy-back1 income streams increasing ~3% €9bn dividend1 gross cash capex free cash flow on an annual basis with 40-50
Slide 100: Strong financial position
strong financial position 2.0 BBB+ net debt/ S&P underlying EBITDA 13.3% Baa1 return on capital (2023) Moody’s healthy financial investment grade ratios rating 100 Ahold Delhaize - Strategy Day 2024
Slide 101: Current incentives aligned with our ambitions
long term incentives short term incentives carbon sales ROC emissions growth UOM 30% 25% 35% 25% current strategic EPS TSR incentives 25% 15% cash flow imperatives aligned with 20% 25% our ambitions 101 Ahold Delhaize - Strategy Day 2024
Slide 102: Our ambitions are realized by our people
our ambitions are realized by our people thriving people 102 Ahold Delhaize - Strategy Day 2024
Slide 103: Successfully serving customers for more than 150 years
our brands have been successfully serving customers for more than 150 years 103 Ahold Delhaize - Strategy Day 2024