Koninklijke Ahold Delhaize N.v. · EURONEXT:AD
Koninklijke Ahold Delhaize — Q1 2020 Earnings Presentation
17 slides from Koninklijke Ahold Delhaize's earnings presentation, May 3, 2020
Slide 1: May 7, 2020
May 7, 2020 1
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 such as maintain, Q2, and beyond, continue, near-term, focus, long-term, we will, adapt, growth, to retain, continuing, progress
Slide 3: Highlights
Highlights Frans Muller President & CEO 3
Slide 4: Q1 results significantly impacted by COVID-19
Q1 results significantly impacted by COVID-19 • Net sales were €18.2 billion, up 14.7%; up 12.7% in Q1 at constant exchange rates • U.S. and Europe comp sales growth excluding gas in Q1 were up 13.8% and 9.8%, respectively • Net consumer online sales grew 37.7% in Q1 at constant exchange rates • Ope
Slide 5: Prioritizing COVID-19 safety, relief, and support efforts
Prioritizing COVID-19 safety, relief, and support efforts Ahold Delhaize and local brands deploying more than €170 million on COVID-19 safety, relief, and support efforts For Associates For Customers For Communities • Safety and protective measures • Working with local governments and • Collaboratin
Slide 6: Near-term focus is on running operations safely & smoothly
Near-term focus is on running operations safely & smoothly Higher level of investments needed in Q2 and beyond to ensure a safe environment and smooth operations Accelerate digital & Improve in-stock levels Adapt store operations omnichannel capabilities • Proactively working with suppliers • Contin
Slide 7: Long-term focus is to continue investing in growth
Long-term focus is to continue investing in growth Long-term shifts in consumer behaviour due to COVID-19 are uncertain, but we will adapt, and focus on long-term growth drivers in order to retain our #1 and #2 1 market positions in our current markets by: Enhancing associate and customer well-being
Slide 8: Highlights: United States
Highlights: United States • Working with local and state governments and agencies to provide a safe customer and associate environment • 42% online sales growth in Q1; capacity increases in progress, and thus raising target to over 50% US online sales growth [previously 30%+] in 2020 • 707 click & c
Slide 9: Highlights: Europe
Highlights: Europe • Implemented safety measures for customers and associates, such as DCs doing temperature checks at the entrance, staggered cafeteria hours, safety 1 vests • Gained market share in Q1 in both the Netherlands and Belgium; maintained share in CSE • 36% net consumer online sales grow
Slide 10: Financial Results
Financial Results Natalie Knight CFO 10
Slide 11: Strong Q1 Group performance due largely to COVID-19
Strong Q1 Group performance due largely to COVID-19 Net sales Operating income Underlying operating income Underlying operating margin €18,208 €964 €961 5.3% in million in million in million vs LY actual rates 14.7% vs LY actual rates 42.8% vs LY actual rates 38.3% vs LY actual rates 0.9pts vs LY co
Slide 12: COVID-19 impacts all segments of the business
COVID-19 impacts all segments of the business Ahold Delhaize The United States Europe Group % change % change % change Q1 Q1 Q1 constant constant constant 2020 rates 2020 rates 2020 rates € million Net Sales 18,208 12.7% 11,315 13.7% 6,893 11.0% Comparable sales growth excl. gas 12.2% 13.8% 9.8% Onl
Slide 13: Solid results in Jan/Feb prior to significant COVID-19 impacts
Solid results in Jan/Feb prior to significant COVID-19 impacts Pre-COVID-19 COVID-19 Full Year 2019 Jan/Feb 2020 March 2020 Q1 2020 % change % change % change % change 2 2 2 constant rates constant rates constant rates constant rates2 Group Net sales growth 2.3% 4.1% 26.7% 12.7% Group Comparable sal
Slide 14: Free Cash Flow levels were exceptional in the quarter
Free Cash Flow levels were exceptional in the quarter Q1 Q1 2020 2019 € million Operating cash flow 1,700 1,336 Changes in working capital 636 (393) Income Tax Paid (32) (226) Operating activities 2,304 717 Investments (708) (452) Divestments 42 10 Net interest paid (23) (19) Repayments of lease lia
Slide 15: Outlook 2020 Maintained
Outlook 2020 Maintained • Uncertainty from COVID-19; nevertheless, 2020 outlook is maintained • Investments related to COVID-19 will become significantly more visible in subsequent quarters • Source of FCF upside to €1.5 billion level related to strong Q1 growth, rather than capital project delays •
Slide 16: Wrap-up
Wrap-up • Strong Q1 performance impacted by the unprecedented demand from COVID-19 • Solid underlying business prior to COVID-19 demand • Uncertainty due to COVID-19, but 2020 outlook and shareholder return policy maintained 2 • Near-term focus is to continue running operations safely & smoothly • 3
Slide 17: Thank you
&%) Ahold / Delhaize Thank you FOODMALION §$sToPasHoP. Dene) Ge stns are bolcom” 60TX 9 &F Tempo A) uetenovter TENAEI9P Peapod — Bespin de winkel van ons allemaal Ahold Delhaize Proud companies of 17
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