Koninklijke Ahold Delhaize N.v. · EURONEXT:AD
Koninklijke Ahold Delhaize — Ahold Delhaize — Investor Day (November 2021)
185 slides from Koninklijke Ahold Delhaize's investor day presentation, Nov 15, 2021
Slide 1: Agenda
Times mentioned are CET Agenda MONDAY NOVEMBER 15 14:30 – 15:15 15:45 – 16:40 Omnichannel Growth – Transformational Moves United States Daniella Vega | Health & Sustainabilty 14:00 – 14:30 JJ Fleeman & Selma Postma | Power of Data Kevin Holt Leading Together Nic Bertram | The GIANT Company Margaret
Slide 2: 2021 Investor Day
2021 Investor Day Ahold Delhaize
Slide 3: Leading Together
Leading Together Frans Muller President & Chief Executive Officer
Slide 4: Our purpose: Eat well. Save time. Live better.
Our purpose Eat well. Save time. Live better. Ahold Delhaize – Investor Day 2021 4
Slide 5: Our values
Our values Courage Teamwork Humor We drive change, are Together, we take We are humble, open minded, bold ownership, down-to-earth, and and innovative collaborate and win don’t take ourselves too seriously Integrity Care We do the right We care for our thing and earn customers, our customers’ trust
Slide 6: Leading Together
Leading Together Our purpose Eat well. Save time. Live better. Our values Courage Integrity Teamwork Care Humor We drive change, We do the right Together, we take We care for our customers, We are humble, down-to- are open minded, thing and earn ownership, collaborate our colleagues, and our earth,
Slide 7: Our strategy drove growth & positioned us well to serve our customers
Our strategy drove growth & positioned us well to serve our customers Our 2018 CMD commitments Our commitments Status as of Q3 2021 Average ~€2 billion in 2019 and 2020 with €1.7 billion expected in Annual Free cash flow of ~€1.8 billion for 2019 to 2021* 2021E €1.8 billion in cumulative Save for Ou
Slide 8: We have built a strong portfolio…
We have built a strong portfolio… #2 #1 Strengthening our positions #1 #1 #2 #2 #1 #1 #1* #1 #1 #2* #2 #1 #2 #1 Ahold Delhaize – Investor Day 2021 Source: *Mega Image #1 in Bucharest; FreshDirect #2 in Manhattan region
Slide 9: …and have gained market share across our brands
…and have gained market share across our brands Strengthening our positions Market Share Growth of Top 5 brands of Ahold Delhaize (ppt change Q2 2021 vs. Q2 2019) +2,0 ppt +0,7 ppt +0,5 ppt +0,5 ppt +0,1 ppt Ahold Delhaize – Investor Day 2021 9
Slide 10: Delivering strong online growth
Delivering strong online growth Strengthening our positions Net Consumer Online Sales >10 1,400+ (in € billions) bol.com EU&I US 7.6 ~5.5 US pick up points & click- and-collect 4,3 locations by 4.5 end of 2021 ~1.7 3.5 2,8 bol.com unique 2,1 1,3 monthly visits in ~3.8 Belgium & 0,8 140m 0,7 2,0 Neth
Slide 11: Evolving preferences of customers
Evolving preferences 53% expect to work more from of customers home in the near future Looking ahead, shifting customer behavior provides us 65% cite better value as the an opportunity to accelerate reason for trying new brands our strategy across key priorities 66% are trying to eat healthier 35% c
Slide 12: We have a repeatable formula for growth
We have a repeatable formula for growth Strengthening our positions Customer facing brands Customer facing brands United States Europe & Indonesia Avg. 31k sqft x Average Avg. 7k sqft x ~2,000 stores selling area ~5,300 stores >90% eCommerce >90% East Coast reach Benelux 27 +100% increase in online
Slide 13: 4 priorities for the next 4 years
4 priorities for the next 4 years For customers For operations For H&S For our portfolio Serve Accelerate the Lead the Create the customers with omnichannel transformation ecosystem for deeper (digital) transformation & into a healthy & smarter customer relationships continue to be the sustainable f
Slide 14: 4 priorities for the next 4 years
4 priorities for the next 4 years For customers For operations For H&S For our portfolio Serve Accelerate the Lead the Create the customers with omnichannel transformation ecosystem for deeper (digital) transformation & into a healthy & smarter customer relationships continue to be the sustainable f
Slide 15: Our omnichannel customer value proposition is at the core of how our brands grow
Our omnichannel customer value proposition is at the core of how our brands grow Customer priority Great Value Fresh & Healthy Deeper digital relationships Convenient Local Customer +€10b & Trusted Vibrant, easy and priority modern stores Sales growth Relevant Assortment by 2025 vs. Seamless 2022 2x
Slide 16: Offer the freshest groceries & unlock healthy eating and living for all
Offer the freshest groceries & unlock healthy eating and living for all Customer priority: Fresh & Healthy Highest percent of fresh & healthy assortment >55% of healthy own food sales by 2025 Great Value Fresh & Healthy Convenient Local Customer & Trusted Enable fresh & healthy choices priority Impl
Slide 17: Be the recognized local leader, connected & trusted by customers and communities
Be the recognized local leader, connected & trusted by customers and communities Customer priority: Local & Trusted Create uniquely local experiences Higher share of locally sourced assortment, direct from farm-to-fork Great Value Fresh & Healthy Convenient Local Customer & Trusted Embed ourselves i
Slide 18: Deliver relevant personalized information, services, offerings & promotions
Deliver relevant personalized information, services, offerings & promotions Customer priority: Personalized Offer personalized value Increase real-time tailored offers and promotions linked to customer basket Great Value Fresh & Healthy Convenient Local Customer & Trusted Tailor customer experiences
Slide 19: bol.com, a powerful asset with a relentless focus on the customer
bol.com, a powerful asset with a relentless focus on the customer Customer priority ~34m Number of unique products offered on bol ~2x bol.com net consumer online ~2x EBITDA by 2025 Relational NPS in sales by 2025 30+ NL & BE-FL 3 game changers going forward Number of local Scale (bol.com) ~47k entre
Slide 20: 4 priorities for the next 4 years
4 priorities for the next 4 years For customers For operations For H&S For our portfolio Serve Accelerate the Lead the Create the customers with omnichannel transformation ecosystem for deeper (digital) transformation & into a healthy & smarter customer relationships continue to be the sustainable f
Slide 21: We are accelerating the omnichannel transformation across core capabilities…
We are accelerating the omnichannel transformation across core capabilities… Operational priority Digital & in-store experience Supply chain, operations • Prism eCommerce platform & merchandising Scaled servicing all US brands by 2022 tech and Digital & capabilities • Optimized urban store format •
Slide 22: …and executing a clear omnichannel formula across our brands
…and executing a clear omnichannel formula across our brands Operational priority Scaled service hubs, Europe & United States technology and Indonesia capabilities Global Capabilities Digital & Fueled by Partnerships Technology Hub higher Services CAPEX spend Functions (3% to 3.5%) Ahold Delhaize –
Slide 23: We will continue to drive operational excellence
We will continue to drive operational excellence Operational priority Profit margin (%) Fully allocated 5% Ahold Delhaize eCommerce 4% Profitable by Competitor 1 Competitor 2 Competitor 3 2025 3% Competitor 4 Best-in-class Save for 2% Competitor 5 Our Customer ~€4b 1% 0% 2016 2017 2018 2019 2020 -1%
Slide 24: 4 priorities for the next 4 years
4 priorities for the next 4 years For customers For operations For H&S For our portfolio Serve Accelerate the Lead the Create the customers with omnichannel transformation ecosystem for deeper (digital) transformation & into a healthy & smarter customer relationships continue to be the sustainable f
Slide 25: We make healthy and sustainable choices easy for everyone
We make healthy and sustainable choices easy for everyone Customers Our operations Empower customers to make healthy Drive the decarbonization and sustainable choices within of our businesses and partners to a Healthier planetary boundaries. 1.5-degree future by becoming net planet zero. Product Dev
Slide 26: Be the industry leading healthy and sustainable retailer
Be the industry leading healthy and sustainable retailer AA MSCI ESG rating in 2021, upgraded from A Top 10% Healthier Sustainalytics rating in food industry planet Over 10 years Our operations consistent leadership on the Dow Jones Our farmers and Sustainability Index suppliers Healthier Race to Ze
Slide 27: Net zero carbon emissions targets
net zero carbon emissions across our own operations net zero (Scope 1 & 2) business by across our entire supply chain, products 2040 by and services (Scope 3) 2050 Ahold Delhaize – Investor Day 2021 27
Slide 28: 4 priorities for the next 4 years
4 priorities for the next 4 years For customers For operations For H&S For our portfolio Serve Accelerate the Lead the Create the customers with omnichannel transformation ecosystem for deeper (digital) transformation & into a healthy & smarter customer relationships continue to be the sustainable f
Slide 29: We will unlock new customer connections
We will unlock new customer Win in NY connections Portfolio priority Win in Philadelphia Win in urban markets Driving richer customer experiences and Win in touchpoints Benelux Leverage strengths of leading #1 and #2 food and #1 online marketplace Ahold Delhaize – Investor Day 2021 29
Slide 30: We will drive new customer propositions and complementary revenue streams
We will drive new customer propositions and complementary revenue streams Portfolio priority Test-scale new customer propositions €1 billion Scaling AH Premium & Compact to Europe Testing in complementary <2hr in US and Europe revenue streams by 2025 Scale complementary Piloting <1hr grocery in 2022
Slide 31: Across the portfolio, we are focused on reinforcing our omnichannel leading positions
Across the portfolio, we are focused on reinforcing and strengthening our omnichannel leading positions Our portfolio ambition Our focus Our competitive advantage Great local 1 Create a uniquely local omnichannel brands strategy 19 great local brands customer experience for every brand Efficient pla
Slide 32: Our financial ambitions
2025 Our financial ambitions +€10b 2x Sales growth vs. 2022 Net consumer online sales growth vs. 2021 Profitable €1b Fully allocated eCommerce Complementary revenue by 2025 streams by 2025 >€6b High-Single Digit Annual underlying EPS Cumulative growth vs. 2022 Free Cash Flow Ahold Delhaize – Investo
Slide 33: All of the above is enabled by Best Talent
All of the above is enabled by Best Talent We have strong, engaged and inclusive workplaces For customers Serve customers with Strong ~410,000+ associates in 10 countries deeper (digital) talent pools >45,000 new jobs in 2020 relationships For operations Accelerate the omnichannel transformation & c
Slide 34: We are creating the leading local food shopping experience
We are creating the leading local food shopping experience Local Shopping Stay rooted in Make shopping our brands’ Food easy, personal local and convenient Leading communities, Keep food at the through a truly Experience contributing center of our seamless Be the and serving the brands’ offering, om
Slide 35: Thank you
%) Ahold Delhaize Thank you FOODMALION $sToPasHor. SR Gee & Giant Q~~ Bi) étos a auft Dolcom!” EIT 7 tempo emits LENA [fA] streshdrect [A] of Hey Caton — Ont.
Slide 36: Albert Heijn
Albert Heijn Marit van Egmond Brand President Albert Heijn
Slide 37: Albert Heijn
EU&I Great Local Brand Albert Heijn Ahold Delhaize – Investor Day 2021 37
Slide 38: Albert Heijn: the #1 omnichannel food retailer in the Netherlands
Albert Heijn: the #1 omnichannel food retailer in the Netherlands Always and everywhere for our customers €15b yearly consumer sales In your community At home >15m >1,000 stores >€1.5b home delivery sales weekly transactions >35% market share and significantly growing In your pocket On your way >10%
Slide 39: Together we make better eating the easy choice. For everyone.
Together we make better eating the easy choice. For everyone. Leading in health & sustainability Frontrunner in Lowering our CO2 healthy options & footprint & reduce personalized health packaging advice Leading the Unique & long- plant-based, lasting direct organic & local collaboration food transit
Slide 40: Our strong and relevant customer value proposition drives growth
Our strong and relevant customer value proposition drives growth Continuous investments in store development and new growth are key drivers of our performance Converted over Best in class 350 stores to fresh quality the successful Effectively drive and recognized Unique combination Real Fresh price
Slide 41: We grow further with new stores, foodservice, high traffic locations and eCommerce
We grow further with new stores, foodservice, high traffic locations and eCommerce Our omnichannel customers are the most loyal as we see overall customer spending grow >40% after their first online order 41% Revenue before Revenue after first order first order Ahold Delhaize – Investor Day 2021 41
Slide 42: With the ambition to double eCommerce food sales before 2025
With the ambition to double eCommerce food sales before 2025 Leveraging our strong customer connection, overall market leadership, best rated app & service x2 experience and Win in Benelux We double capacity again by building 5+ additional HSCs We further drive operational efficiency by mechanizatio
Slide 43: We drive customer spending up +8% by digitalizing the full customer journey
We drive customer spending up +8% by digitalizing the full customer journey … Rigorously reducing customer frictions to make shopping easy Relevant inspiration Easy shopping Frictionless payment Drive sustainability Ahold Delhaize – Investor Day 2021 43
Slide 44: A key role for the Albert Heijn App
Personalized Offers … with a key Paid role for the Subscription Albert Heijn App as our next level loyalty builder From 200k users in 2019, now more than 3 million active users monthly Tailor-made Digital Inspiration Savings program Ahold Delhaize – Investor Day 2021 44
Slide 45: Capitalizing on Albert Heijn's growing digital reach & 1st party data
Capitalizing on our Albert Heijn’s growing digital reach & 1st party data Drive Albert Heijn’s complementary revenue streams beyond €100m a year through retail media, data sales and the first European grocer with sponsored products Ahold Delhaize – Investor Day 2021 45
Slide 46: We are the #1 omnichannel food tech player
We are the #1 omnichannel food tech player Proven track record with sustainable sales growth, UOP and industry leading RoC levels Leading grocery Growing towards >1,200 Doubling #1 in health & platform for daily needs stores in NL & Belgium eCommerce sales sustainability Ahold Delhaize – Investor Da
Slide 47: Thank you
%) Ahold Delhaize Thank you FOODMALION $sToPasHor. SR Gee & Giant Q~~ Bi) étos a auft Dolcom!” EIT 7 tempo emits LENA [fA] streshdrect [A] of Hey Caton — Ont.
Slide 48: Omnichannel Growth – EU&I
Omnichannel Growth – EU&I Wouter Kolk Chief Executive Officer Ahold Delhaize Europe & Indonesia
Slide 49: Our footprint in Europe & Indonesia
Our footprint in Europe & Indonesia Market 11 >5,300 >170 12% eCommerce share growth great local stores thousand penetration in key brands1 across Europe associates incl. bol.com markets 1 1ncluding JVs Pingo Doce and SuperIndo Ahold Delhaize - Investor Day 2021 49
Slide 50: In 2021 we accelerated further transformation across our EU&I Brands
we accelerated In 2021 we acceleratedfurther furthertransformation transformationacross acrossour ourEU&I EU&IBrands Brands In the service of our customer, focusing on our Omnichannel CVP 30% 10m Addressable NCS growth cardholders €7b >250 Net consumer sales Store openings & >130 (NCS) remodels Ahol
Slide 51: Accelerating the transformation
Accelerating the transformation €15b 20% NCS NCS CAGR towards 2025 In the service of our customer, focusing on our omnichannel CVP >800 20m Store openings Addressable cardholders Ahold Delhaize - Investor Day 2021 51
Slide 52: 4 priorities for the next 4 years
4 priorities for the next 4 years For customers For operations For H&S For our portfolio Serve Accelerate the Lead the Create the customers with omnichannel transformation ecosystem for deeper (digital) transformation & into a healthy & smarter customer relationships continue to be the sustainable f
Slide 53: 4 priorities for the next 4 years
4 priorities for the next 4 years For customers For operations For H&S For our portfolio Serve Accelerate the Lead the Create the customers with omnichannel transformation ecosystem for deeper (digital) transformation & into a healthy & smarter customer relationships continue to be the sustainable f
Slide 54: Our omnichannel CVP is at the heart of our great local brands
Great Value Fresh & Healthy Our omnichannel CVP is at the heart of our great Convenient local brands Customer Local & Trusted priority Driving the best customer experience in every aspect Relevant Assortment Personalized Leading Own Brands Ahold Delhaize - Investor Day 2021 54
Slide 55: Great local brand CVP
Great local brand CVP Fresh & Healthy Relevant Assortment Local & Trusted Striving for a healthier and better and Leading Own Brands Offering products from local suppliers living for all Optimize our OB assortment & choices Expanding own Bakery and deli Local brand organic improvements delicacies &
Slide 56: Great local brand CVP
Great local brand CVP Great Value Personalized Convenient Shaping loyalty with future proof Drive seamless omnichannel Drive price & value features & personalized offering engagement Loyalty Price schemes Self-scan & ESL Favorites & 2- implemented implementation tier own brand everywhere Optimizatio
Slide 57: 4 priorities for the next 4 years
4 priorities for the next 4 years For customers For operations For H&S For our portfolio Serve Accelerate the Lead the Create the customers with omnichannel transformation ecosystem for deeper (digital) transformation & into a healthy & smarter customer relationships continue to be the sustainable f
Slide 58: Joint EU&I frontrunner
Joint EU&I Scaling across frontrunner our business, brings significant value Joint EU&I frontrunner Record high savings RPA & chatbots of S4OC Joint sourcing across EU&I and US Scaling price, promo & assortment tools Ahold Delhaize - Investor Day 2021 58
Slide 59: We share and scale the best customer experience
We share and scale the best customer Compact model experience for the customer across our omnichannel touchpoints Fast model Joint EU&I frontrunner One scalable warehouse management solution Full-service model Ahold Delhaize - Investor Day 2021 59
Slide 60: Shaping our loyalty programs with new and future-proof features
Shaping Joint EU&I ourfrontrunner loyalty programs with new and future-proof features, and extended & personalized offering … Joint EU&I frontrunner Scalable loyalty program Extended options across EU&I & offerings Combined delivery Towards loyalty subscription with AH penetration of 70% & bol.com A
Slide 61: …while delivering our health & sustainability goals
Joint … while EU&I delivering frontrunner our health & sustainability goals Joint EU&I frontrunner Subscription models Nutriscore Dynamic pricing Smart cooling Dry misting Multi packaging system Ahold Delhaize - Investor Day 2021 61
Slide 62: 4 priorities for the next 4 years
4 priorities for the next 4 years For customers For operations For H&S For our portfolio Serve Accelerate the Lead the Create the customers with omnichannel transformation ecosystem for deeper (digital) transformation & into a healthy & smarter customer relationships continue to be the sustainable f
Slide 63: Combining food/non-food platforms for new income streams
And, we are increasingly combining the power of our food/non-food platforms & options for new income streams Joint EU&I frontrunner Ahold Delhaize - Investor Day 2021 63
Slide 64: Offering a truly omnichannel experience
4 priorities for the next 4 years Offering a truly omnichannel experience Delivering our best customer proposition and continuously building scalable, foundational capabilities For customers For operations For H&S For our portfolio Serve Accelerate the Lead the Create the customers with omnichannel
Slide 65: Thank you
% Ahold Delhaize Thank you FOODMALION $sToPasHor. SR Gee & Giant Q~~ Bi) étos a auft Dolcom!” EIT 7 tempo emits LENA [fA] streshdrect [A] of Hey Caton — Ont.
Slide 66: Omnichannel Growth – USA
Omnichannel Growth – USA Kevin Holt Chief Executive Officer Ahold Delhaize USA
Slide 67: The local brands of Ahold Delhaize USA
The local brands of Ahold Delhaize USA Largest grocery retail group on the East Coast ~2,000 $51.8b 1,400+ 30m stores in sales Click & Collect active loyalty across all brands in the US in 2020 locations in US (Q3 2021) card members 230k+ 105% 90% 12b associates across online growth customer reach p
Slide 68: Thank You
Purpose. Culture. Community. Thank You
Slide 69: Ahold Delhaize - Investor Day 2021
Ahold Delhaize - Investor Day 2021 69 69
Slide 70: 4 priorities for the next 4 years
4 priorities for the next 4 years For customers For operations For H&S For our portfolio Serve Accelerate the Lead the Create the customers with omnichannel transformation ecosystem for deeper (digital) transformation & into a healthy & smarter customer relationships continue to be the sustainable f
Slide 71: Moments that Matter: Connected Customer Strategy
Connected Customer Strategy Uniquely local brand solutions to make customers’ everyday lives a bit easier so they can enjoy the Moments that Matter Ahold Delhaize - Investor Day 2021 71
Slide 72: Our brands are aligned in leading the Connected Customer Strategy
Our brands are passionately aligned in leading the Connected Customer Strategy Right Pricing with Personalized Vibrant, Easy and Value Uniquely Modern Stores Compelling Local Seamless Private Brands Omnichannel For All
Slide 73: We are uniquely organized to deliver the Connected Customer Strategy
We are uniquely organized to effectively deliver the Connected Customer Strategy Ahold Delhaize USA Local Scale Leverage Capabilities Speed Practices & Platforms Ahold Delhaize - Investor Day 2021 73 73
Slide 74: Accelerating omnichannel for the US business through digital and commercial services
Accelerating omnichannel for the US business through digital and commercial services Private Brands Standup of Peapod Digital Labs Accelerating Sourcing & Omnichannel CVP Commercial Services Retail Media Proprietary Platform 74 Ahold Delhaize - Investor Day 2021 74 74
Slide 75: Providing innovative solutions by leveraging scale and expertise
Providing innovative solutions by leveraging scale and expertise so Local Brands can focus on serving customers IT Evolution Retail Innovation Center of Excellence Retail Media Scaled Indirect Sourcing 75 Ahold Delhaize - Investor Day 2021 75
Slide 76: Accelerating omnichannel through digital and commercial services: 26 facilities
Accelerating omnichannel for the U.S. business through digital and commercial services TRANSFORMATION END APRIL 2024 S. PORTLAND SCHODACK Full Self-Distribution MANCHESTER WINTHROP CAMP HILL MPF SACO by 2024 FREETOWN* CHESTER Automation CARLISILE* GREENCASTLE JERSEY CITY* NORTH KINGSTOWN N KINGSTOWN
Slide 77: Demonstrated strategic repositioning, discipline and continuous evolution
Demonstrated strategic repositioning, discipline and continuous evolution to reach its customers Foundational & Strategy Price Investments Evolution Strategic Remodels 1,102 stores Ahold Delhaize - Investor Day 2021 77 77
Slide 78: Same store sales growth and market share gains
36 Consecutive quarters of same store sales growth +2 ppt Market share gains +69% (Q2 2019-Q2 2021) Sales per square foot (2010-2021 YTD) Ahold Delhaize - Investor Day 2021 78 78
Slide 79: Stop & Shop continues to shape and reposition the brand
Stop & Shop continues to shape and reposition the brand to achieve an omnichannel vision Foundational Increased Capabilities Competitiveness & Growth Improving CVP 406 stores Ahold Delhaize - Investor Day 2021 79
Slide 80: Remodel and eCommerce results
+6% Incremental sales from remodeled stores +4 pts NPS vs. 2018 +350 bps eCommerce penetration vs. beginning 2020 Ahold Delhaize - Investor Day 2021 80
Slide 81: Joining Forces to win in New York City
Joining Forces to win in New York City Dual brand Integrated strategy in the commercial marketplace strategy Synergies Ahold Delhaize - Investor Day 2021 81
Slide 82: Strengthening The Giant Company brand in Philadelphia
Strengthening The Giant Company brand across its markets and driving omnichannel innovation in Philadelphia Giant Heirloom eCommerce Markets Fulfillment Center Urban Flagship Store 187 stores Ahold Delhaize - Investor Day 2021 82
Slide 83: eCommerce sales and omnichannel customers vs. 2019
+183% +138% eCommerce Omnichannel sales vs. 2019 customers vs. 2019 Increased market share overall and in Philadelphia Ahold Delhaize - Investor Day 2021 83 83
Slide 84: Offering a truly omnichannel experience
4 priorities for the next 4 years Offering a truly omnichannel experience Solving for both digital and in-store expectations while integrating across channels For customers For operations For H&S For our portfolio Serve Accelerate the Lead the Create the customers with omnichannel transformation eco
Slide 85: Thank you
% Ahold Delhaize Thank you FOODMALION $sToPasHor. SR Gee & Giant Q~~ Bi) étos a auft Dolcom!” EIT 7 tempo emits LENA [fA] streshdrect [A] of Hey Caton — Ont.
Slide 86: bol.com
bol.com Margaret Versteden – van Duijn Brand President bol.com
Slide 87: The Netherlands and Belgium are attractive eCommerce Markets
The Netherlands and Belgium are attractive eCommerce Markets Strong High eCommerce internet penetration penetration Local 87% NL / 72% BE 96% NL / 91% BE eCommerce focus 90% of online purchases in NL Attractive High from local smartphone geographic websites usage density 500 NL / 383 BE Inhabitants
Slide 88: We have shaped ecommerce in our home markets
We have shaped ecommerce in our home markets 1999 2004 2011 2012 2015 2016 2017 2020 2021 Launched Expansion Launched Purchased Launched Launched Launched in bol.com into in by Ahold platform Select Wallonia (BE) online new Flanders Delhaize (loyalty) bookstore categories (BE) eCommerce Logistics Ad
Slide 89: We are the clear #1 market leader
We are the clear ~5.5b #1 market leader 2021 EBITDA Net consumer sales (€b) Retail sales €150-170m 40% 20% CAGR ‘12-’21 60% Platform sales >100% CAGR ’12-’21 0.4b 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Ahold Delhaize - Investor Day 2021 89
Slide 90: Our market leadership is very strong: This is our home
Our market leadership is very strong: This is our home Our market leadership is Our partners We lead very strong love us the market NPS relational Partner brand preference Relative market share NL + BE-FL 45% +1-2% y points yearl #4 g rowth share 30+ #3 #1 BE 15% BE #2 14 NL 8% NL 1 bol.com Highest
Slide 91: Our leadership is built on our platform flywheel
Our leadership is built on our platform flywheel, localized for our markets Best High traffic volume customer experience Purpose Services for driven, Large partners innovative number of customers team Large partner base Ahold Delhaize - Investor Day 2021 91
Slide 92: Our brand is deeply rooted in NL & BE
Best customer experience Our Brand is deeply rooted in NL & BE and has enormous ‘likeability’ Brand awareness >90% NL >85% BE 6x 140m strongest retail unique monthly brand NL visitors BE + NL Sources: customer questionnaires; Retail Trends Magazine Ahold Delhaize - Investor Day 2021 92
Slide 93: We win through our outstanding customer propositions
Best customer experience We win through our outstanding customer propositions ~34m Number of unique products offered “Customer Service is #1 available 24/7 Best in the market on ‘easy to find “Whatever I'm looking for, product’ and ‘fast delivery’ and is always I can find it at bol.com” so friendly”
Slide 94: Our Select loyalty program is gaining traction fast
Large numbers of customers Our Select loyalty program is gaining traction fast ee ery ngs m vi ra ts & ts +80% r F liv a raf oun CAGR member S rog D sc de p di growth 19-21 +€200 p.a. spend per member Ahold Delhaize - Investor Day 2021 94
Slide 95: Our strong partner focus is central to our success
Large partner base “bol.com “The bol.com offers access partner service Our strong to the largest number of is fast, friendly, reliable and in partner focus customers in NL & BE” Dutch” is central to our success ~47,000 local entrepreneurs In true local “Bol.com partnership customers are primarily se
Slide 96: Distinctive services help our partners be successful
Services for partners Distinctive services help our partners be successful Logistic services Advertising services “Great customer experience at lowest cost” “Become highly visible to our customers” Unique! Full logistics service Last mile only service Display/Social advertising Sponsored products >3
Slide 97: Our success is built on our entrepreneurial & innovative team
Purpose driven & innovative team Our success is built on our entrepreneurial & innovative team 3 consecutive years best tech employer (Computable) 8 / 10 on employee engagement Sources: Computable Ahold Delhaize - Investor Day 2021 97
Slide 98: This is just the beginning
This is just the beginning Ahold Delhaize - Investor Day 2021 98
Slide 99: Ample opportunity for continued growth in the NL + BE online market
Ample opportunity for continued growth in the NL + BE online market Online sales Market share Online as % of total retail sales in all product categories Indicative market shares of top 3 eCommerce companies China 27% China #1 #2 #3 UK 24% Germany #1 #2 #3 US 20% US #1 #2 #3 NL + BE 17% Japan #1 #2
Slide 100: 3 key game changers to accelerate market leadership
3 key game changers will enable us to further accelerate market leadership Increase loyalty, multi-category Accelerate and expand Scale logistics buying and frequency advertising services services to partners Ahold Delhaize - Investor Day 2021 100
Slide 101: Room to grow in category depth, frequency & Select
Game Changer There is significant room to grow in Even stronger category depth, frequency & Select opportunity to grow frequency and loyalty with # of orders per customer, # of orders per customer, Win in Benelux last 12 months last 12 months x6 x2.5 3x more categories Average Top 10% 2021 2025 cust
Slide 102: Accelerate & expand advertising services
Game Changer Accelerate & expand advertising services There is ample market potential We have a strong position Estimated European advertising spend on retail media [€ Bn] #1 online shopping Trusted x3.5 destination relationship with our 25b customers and partners Rich shopping data 7b Even stronger
Slide 103: Scale our logistics services
Game Changer Scale our logistics 2x services to improve partner and customer warehousing footprint 4x propositions more SKUs next day CO2 neutral last mile delivery >90% of all last mile deliveries facilitated by bol.com Ahold Delhaize - Investor Day 2021 103
Slide 104: Bringing it all together...
Bringing it all together... Ahold Delhaize - Investor Day 2021 104
Slide 105: Our 2025 ambition
Our 2025 ambition ~2x Net consumer sales ~2x EBITDA ~3x Shipments facilitated by bol.com ~4x Capital investments for continued growth Ahold Delhaize - Investor Day 2021 105
Slide 106: This really is just the beginning
This really is just the beginning Ahold Delhaize - Investor Day 2021 106
Slide 107: Thank you
2% Ahold Delhaize Thank you FOODMALION $sToPasHor. SR Gee & Giant Q~~ Bi) étos a auft Dolcom!” EIT 7 tempo emits LENA [fA] streshdrect [A] of Hey Caton — Ont.
Slide 108: Unlocking the Power of Data
Unlocking the Power of Data JJ Fleeman President of Digital & Commercial Services, Peapod Digital Labs Selma Postma Chief Digital Officer Europe & Indonesia
Slide 109: Data powers every aspect of what we do…
Data powers every aspect of what we do… Data Customer priority Ca pa ion …for the best customer ...yielding more bil at experience, for business sales, lower costs, itie tiv Ac optimization, and to unlock and funds to s new business opportunities… re-invest Ahold Delhaize - Investor Day 2021 109
Slide 110: We have unique data, giving us a competitive advantage
We have unique data, giving us a competitive advantage across 54m high huge >33m multiple 1st party >7,000 frequency breadth data local stores customers loyalty touch per week >2x per week of basket members points Ahold Delhaize - Investor Day 2021 110
Slide 111: Capabilities across three key activation areas
To maximize the impact of our data, we have built capabilities across three key activation areas Personalized Healthy Meal Solutions Swaps Product Health Macro format Automated </> Store layout Recipe Search Endless aisleProfile EBT/SNAP Integraation Predicative Analytics Curbside Pickup Best Custom
Slide 112: For our Customer
For our Customer Delivering the best customer experience throughout the customer journey Ahold Delhaize - Investor Day 2021 112
Slide 113: For our Business
For our Business Optimizing the efficiency and effectiveness of our business Ahold Delhaize - Investor Day 2021 113
Slide 114: Assortment, Price & Promo Optimization
+1.3% Incremental sales at Albert Heijn +0.4% Incremental gross margin at Alfa Beta 26% Cost savings on run-rate at Delhaize & Albert Heijn Assortment, Price & Promo Optimization Ahold Delhaize - Investor Day 2021 114
Slide 115: Customer 360
+69% lift in RPM impressions +35% lift in clickthrough rate Customer 360 Ahold Delhaize - Investor Day 2021 115 115
Slide 116: The Network Tool
Reduces operating costs Optimizes capital investment Maximizes whitespace opportunity The Network Tool Ahold Delhaize - Investor Day 2021 116 116
Slide 117: Store Genius
>5% Improved freshness of fruits & vegetables >80% Stores with perfect in- store counting performance Store Genius Ahold Delhaize - Investor Day 2021 117
Slide 118: Spectrum
+1-3% Productivity 50% improvement Reduction in training time 33% Reduction of pick- from-store out of stocks Spectrum Ahold Delhaize - Investor Day 2021 118 118
Slide 119: Unlocking Additional Income Streams
Unlocking Additional Income Streams Fueling our omnichannel customer proposition and building a durable business Ahold Delhaize - Investor Day 2021 119
Slide 120: We've built additional income streams across the business
We’ve built additional income streams across the business Media Insights Digital Services In-store Services Sales Insights Subscription Store Gift Cards Sharing Programs Financial Digital Customer 3P Services & On Property 360 Marketplaces Partnerships Digital Commissions Off Property Loyalty Ahold
Slide 121: Growing towards €1b by 2025
Growing towards €1b by 2025 Ahold Delhaize - Investor Day 2021 121
Slide 122: Data powers every aspect of what we do…
Data powers every aspect of what we do… Data Customer priority Ca pa ion …for the best customer ...yielding more bil at experience, for business sales, lower costs, itie tiv Ac optimization, and to unlock and funds to s new business opportunities… re-invest Ahold Delhaize - Investor Day 2021 122
Slide 123: Thank you
2% Ahold Delhaize Thank you FOODMALION $sToPasHor. SR Gee & Giant Q~~ Bi) étos a auft Dolcom!” EIT 7 tempo emits LENA [fA] streshdrect [A] of Hey Caton — Ont.
Slide 124: Health and Sustainability
Health and Sustainability Daniella Vega Global Senior Vice President Health and Sustainability 124
Slide 125: 4 priorities for the next 4 years
4 priorities for the next 4 years For customers For operations For H&S For our portfolio Serve Accelerate the Lead the Create the customers with omnichannel transformation ecosystem for deeper (digital) transformation & into a healthy & smarter customer relationships continue to be the sustainable f
Slide 126: Health and sustainability progress
Reduced absolute scope 1 Increased own Reduced food and 2 carbon brand healthy waste by 17% equivalent sales by 7.8% compared to 2016 emissions by 17% since 2016 baseline compared to 2018 baseline Published inaugural Set science based targets for scope 1, 2 and 3 human rights due Committed to Taskfo
Slide 127: AA Low Risk ratings
AA Low Risk (included in top 10% of food retail industry) Over 10 years consistent leadership Ahold Delhaize – Investor Day 2021 127
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Slide 132: A third of food is wasted
10% of the world population goes to bed hungry and yet a third of food is wasted Ahold Delhaize – Investor Day 2021 132
Slide 133: We make healthy and sustainable choices easy for everyone
We make healthy and sustainable choices easy for everyone Customers Our operations Empower customers to make healthy Drive the decarbonization and sustainable choices within of our businesses and partners to a Healthier planetary boundaries. 1.5-degree future by becoming net planet zero. Product Dev
Slide 134: Customers
Customers Ahold Delhaize – Investor Day 2021 134
Slide 135: Customers want to buy healthier food
of American customers want to 63% buy healthier food and either don’t know how or can’t afford to Ahold Delhaize – Investor Day 2021 135
Slide 136: Over 2 million subscribers
Over 2 million subscribers Ahold Delhaize – Investor Day 2021 136
Slide 137: Product
Product Ahold Delhaize – Investor Day 2021 137
Slide 138: By 2025 own brand healthy food sales target
By 2025 own brand healthy food sales should be well above 55% Ahold Delhaize – Investor Day 2021 138
Slide 139: We make healthy and sustainable choices easy for everyone
We make healthy and sustainable choices easy for everyone Customers Our operations Empower customers to make healthy Drive the decarbonization and sustainable choices within of our businesses and partners to a Healthier planetary boundaries. 1.5-degree future by becoming net planet zero. Product Dev
Slide 140: Our farmers and suppliers
Zero deforestation and conversion by 2025 Our farmers and suppliers Ahold Delhaize – Investor Day 2021 140
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Slide 142: Our operations
Our operations Ahold Delhaize – Investor Day 2021 142
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Slide 144: Poidte s nami iting
Poidte s nami iting snizit maakstvi plasté - > Hawt a EXD hosmetibe ene inovu 3 mow é stent nadoby Nezaplavujme nati pfirode odpadem KA _ Die evidence EKD-KOM, a. 5, veprodukoval | obtan CR w roce 2020 v pelimeru ~ 24 kg jedoerd. h piastovych ai heel ee C) ae / A Nakupujte bez obaly, +h re abychom s
Slide 145: Reduce food waste by 50%
Reduce food waste by 50% Achieve 100% recyclable, reusable from or compostable plastic packaging 2016-2030 from own brand product. Ahold Delhaize – Investor Day 2021 145
Slide 146: Reach net zero carbon emissions by 2040 and 2050
Reach net zero carbon emissions across our own operations by 2040 Become a net zero business across our entire supply chain, products and services by 2050 Ahold Delhaize – Investor Day 2021 146
Slide 147: 2018 baseline CO2 equivalent emissions
2018 baseline CO2 equivalent emissions Electricity Refrigerants 4% Heating Transport 7% Other 7% 46% 36% Ahold Delhaize – Investor Day 2021 147
Slide 148: Reduced absolute energy consumption by 8%
Reduced absolute energy consumption by 8% since 2016 Ahold Delhaize – Investor Day 2021 148
Slide 149: Reduced global warming potential by >11%
Reduced global warming potential by >11% since 2016 Ahold Delhaize – Investor Day 2021 149
Slide 150: Fuel consumption increased by 17%
Fuel consumption increased by 17% since 2017 as a result of increased sales and online growth Ahold Delhaize – Investor Day 2021 150
Slide 151: Carbon equivalent emissions reduced
70% Carbon equivalent emissions reduced More than 90% in last 12 years Carbon equivalent emissions reduced in last 10 years Ahold Delhaize – Investor Day 2021 151
Slide 152: Business ambition for 1.5°C
Business ambition for 1.5°C Ahold Delhaize – Investor Day 2021 152
Slide 153: We make healthy and sustainable choices easy for everyone
We make healthy and sustainable choices easy for everyone Customers Our operations Empower customers to make healthy Drive the decarbonization and sustainable choices within of our businesses and partners to a Healthier planetary boundaries. 1.5-degree future by becoming net planet zero. Product Dev
Slide 154: Thank you!
Thank you!
Slide 155: Win in Benelux
Win in Benelux Wouter Kolk Chief Executive Officer Europe & Indonesia
Slide 156: We have a unique position in the Netherlands & Belgium
We have a unique position in the Netherlands & Belgium We fulfill (almost) every food and non-food need with trusted local brands through offline & online channels 5.7m All types of active card holders shopping >2,900 journeys stores in NL / >35m 25% BE unique of net sales via products online Ahold
Slide 157: We already work together to strengthen our customer propositions…
We already work together to strengthen our Collection Gift cards customer points propositions… Subscription benefits Single sign-on Ahold Delhaize – - CMD2021 Investor Day November 2021 157
Slide 158: …and believe there is even more opportunity
… and believe there is even more opportunity Potential to develop & nurture the customer base to increase share of wallet and stickiness 10.6m total customers 9.9m total customers 3.7m total customers 4.0m total customers 4.9m 5.7m shared 4.2m 2.7m 1.0m shared 3.0m The Netherlands Belgium Ahold Delh
Slide 159: Our Joint Mission
Our Joint Mission Connect shopping experiences across food and non-food, giving our customers… More More More convenience value relevance Joint retail media services to fund & augment customer propositions Ahold Delhaize – Investor Day 2021 159
Slide 160: We will create ultimate convenience in shopping
Easy connection between brands We will therefore create ultimate convenience in shopping Linked account convenience Connect our brands’ shopping experiences, whilst retaining the fast & efficient shopping journeys our customers love In the longer term, we will work to optimize deliveries and returns
Slide 161: We will create a truly relevant experience
Cross banner We will create a promotions and events truly relevant experience and go the extra mile for Duurzame cadeaus our loyal customers Improved relevance in the customer journeys We will use our joint brand experience to realize the best and most relevant customer experience and add value acro
Slide 162: Our joint retail media services will offer unique value
One stop shop for agencies and big brands Our joint retail media services will offer unique value to advertisers and #1 Retail Media customers player in NL/BE Combining our food & non- food reach and first party data yields a joint media proposition that makes us essential in every advertiser’s medi
Slide 163: Bringing this to life
For ultimate convenience, Sam Sam uses our baby signed up for our joint environment to get tips & subscription program to get all tricks, an easy shopping list for baby items any day, any time new parents and free samples at the local store. We and discounts remember Sam across all our banners & cha
Slide 164: We will delight Dutch and Belgian customers with our joint collaboration
Bring together In unique our great local omnichannel brands propositions We will delight Dutch and Belgian customers with our Driving joint collaboration convenience, value & Creating sustainable competitive relevance for advantage customers Ahold Delhaize – Investor Day 2021 164
Slide 165: Thank you
2% Ahold Delhaize Thank you FOODMALION $sToPasHor. SR Gee & Giant Q~~ Bi) étos a auft Dolcom!” EIT 7 tempo emits LENA [fA] streshdrect [A] of Hey Caton — Ont.
Slide 166: Financial Framework
Financial Framework Natalie Knight Chief Financial Officer
Slide 167: Delivering on our Commitments
Delivering on our Commitments Nearly 3x net consumer online sales Industry-leading Consistent sales growth margins and market share gains 14.2% > 10 4.4% 4.8% ~4.4% 4.2% 7,6 2.5% 2.3% 4,5 3,5 2018 2019 2020 2021E 2018 2019 2020 2021E 2018 2019 2020 2021E Ahold Delhaize - LT2021 October In € millions
Slide 168: Transparent and Consistent Financial Management
Transparent and Consistent Financial Management Consistent EPS growth and shareholder returns Accelerate Save For Our Customer driving operational excellence Strong free cash flow >30% >750 2,2 2,2 2,28 1,8 >2 844 ~1.7 1,57 1,71 709 552 2018 2019 2020 2021E 2018 2019 2020 2021E 2018 2019 2020 2021E
Slide 169: Driving Long Term Financial Efficiency
Driving Long Term Financial Efficiency Strong balance sheet and solid investment grade No Debt Maturity Until 2024 First €-denominated Sustainability Linked Bond in sector First retailer to issue €-denominated Sustainability Bond Arranged a Sustainability Linked Credit Facility De-risk 90% Off Balan
Slide 170: We are creating the leading local food shopping experience
We are creating the leading local food shopping experience Local Shopping Stay rooted in Make shopping our local Food easy, personal communities, and convenient Leading contributing Keep food at the through a truly Experience and serving the center of our seamless Be the local needs offering, while
Slide 171: Kickstarting our medium-term plan
2022 Kickstarting our medium-term plan Macro- economic environment Higher food at Inflation and home demand labor Supply chain eCommerce challenges growth Positive shifts in Climate customer and ESG behavior Ahold Delhaize - Investor Day 2021 171
Slide 172: Financial Guidance 2022
2022 Financial Net sales Guidance ≥2021 Industry-leading margins ≥4.0% Share Buy Back* €1b *Management remains committed to the share buyback and dividend program, but given the uncertainty caused by COVID-19, they will continue to monitor macroeconomic developments. The program is also subject to c
Slide 173: Accelerating revenue growth in a post-Covid world
Covid-19 drives new normal 2025 Net sales +€10b 2017 2020 2022 Higher growth due to higher share of Growth versus 2021 stomach and basket Accelerating revenue growth in a post-Covid world 2023 Pre-Covid19 2025 Ahold Delhaize - Investor Day 2021 173
Slide 174: 2x Net consumer online sales
2x Net consumer online sales Fueled by grocery core and bol.com Ahold Delhaize - Investor Day 2021 174
Slide 175: bol.com Step Change to Support Win in Benelux
bol.com Step Change to Support Win in Benelux Our bol.com 2025 ambition New CVP opportunities and loyalty through greater collaboration in Benelux Net consumer ~2x sales Bring In unique together our omnichannel great local propositions High traffic Best brands volume customer experience Driving Purp
Slide 176: Industry-leading margin powered by…
Industry-leading margin powered by… Omnichannel profitability Growth & Leverage Complementary revenue streams S4OC Ahold Delhaize - Investor Day 2021 176
Slide 177: Profitable eCommerce
Sales Complementary leverage revenues eCommerce growth drivers Profitable Customer service proposition Operations fully-allocated eCommerce by 2025 Ahold Delhaize - Investor Day 2021 177
Slide 178: 3x Complementary revenue streams
Digital Media 3x Data Insights In-Store Media Complementary revenue streams Ahold Delhaize - Investor Day 2021 Retail Media Services to €1b 178
Slide 179: Accelerating S4OC
ADUSA self distribution Self checkout EU joint sourcing initiatives Automation Accelerating S4OC Shrink ~€4b Electronic cumulative savings 2022-2025 Shelf Labels Ahold Delhaize - Investor Day 2021 179
Slide 180: Increasing pace of investment to accelerate digital capabilities and online growth
Increasing pace of investment to accelerate digital capabilities and online growth Mechanization CAPEX Omnichannel store remodels ~3.5% of sales Refrigerants and energy Digitech 180 Ahold Delhaize – Investor Day 2021 Ahold Delhaize - Investor Day 2021 180
Slide 181: Continuous focus on Free Cash Flow
Continuous focus on Free Cash Flow Higher CAPEX to fuel growth Increasing Operating Cumulative Cash Flow ~3.5% of Free Cash Flow sales >€6b Operating Working Capital Continued 2022 2023 2024 2025 Improvements 2022 2023 2024 2025 Ahold Delhaize - Investor Day 2021 2023- 2025 181
Slide 182: Increasing shareholder value
Share Buy Back* Increasing €1b Annual underlying EPS growth vs. 2022 shareholder 2022 High value and a firmly Dividend payout ratio** single- anchored digit investment 40%-50% grade rating YoY growth in dividend per share *Management remains committed to the share buyback and dividend program, but g
Slide 183: 4 priorities for the next 4 years
4 priorities for the next 4 years For customers For operations For H&S For our portfolio Serve Accelerate the Lead the Create the customers with omnichannel transformation ecosystem for deeper (digital) transformation & into a healthy & smarter customer relationships continue to be the sustainable f
Slide 184: Our financial ambitions
2025 Our financial ambitions +€10b 2x Sales growth vs. 2022 Net consumer online sales growth vs. 2021 Profitable €1b Fully-allocated eCommerce Complementary revenue by 2025 streams by 2025 >€6b High Single-Digit Annual underlying EPS Cumulative growth vs. 2022 Free Cash Flow Ahold Delhaize - Investo
Slide 185: Thank you
%) Ahold Delhaize Thank you FOODMALION $sToPasHor. SR Gee & Giant Q~~ Bi) étos a auft Dolcom!” EIT 7 tempo emits LENA [fA] streshdrect [A] of Hey Caton — Ont.