Koninklijke Ahold Delhaize N.v. · EURONEXT:AD
Koninklijke Ahold Delhaize — Koninklijke Ahold — Q2 2014 Earnings Presentation
14 slides from Koninklijke Ahold Delhaize's earnings presentation, 2014
Slide 1: Second quarter 2014 results
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Slide 2: Group highlights Q2 2014
Group highlights Q2 2014 Business and strategic highlights • Program to improve customer proposition in the U.S. rolled out to a total of 320 stores • European reorganization implemented, enabling greater commercial focus at Albert Heijn, resulting in a €29 million restructuring charge • Acquisition
Slide 3: Group performance
Group performance (in millions of euros) Quarter 2 Change at 2014 2013 Change constant rates Sales 7,420 7,738 (4.1)% (1.1)% Underlying operating income 288 341 (15.5)% (12.7)% Underlying operating margin 3.9% 4.4% Operating income 260 330 (21.2)% (18.8)% Income from continuing operations 158 204 (2
Slide 4: Performance by segment
Performance by segment (in millions of euros) Ahold USA The Netherlands Czech Republic Q2 2014 Change* Q2 2014 Change Q2 2014 Change* Sales 4,408 (1.7)% 2,706 0.1 % 306 (3.3)% Underlying operating income 162 (14.0)% 134 (9.5)% 6 14.5 % Underlying operating margin 3.7 % (0.5) 5.0% (0.5) 2.0% 0.2 Iden
Slide 5: Solid operating cash flow generation
Solid operating cash flow generation (in millions of euros) H1 2014 2013 Change Operating cash flow* 1,072 1,124 (52) Change in working capital (102) (70) (32) Income tax paid (216) (105) (111) Net investment (278) (381) 103 Interest and dividend joint ventures (104) (125) 21 Free cash flow 372 443
Slide 6: Ahold USA (1/2)
Business highlights: Ahold USA (1/2) Program to improve customer proposition rolled out to 320 stores Improved Rollout schedule 2014 • Remain encouraged by Fresh (# of stores) the results of our offering > 50% of store base program 320 • Expect our Enhanced investments will result customer 190 in im
Slide 7: Ahold USA (2/2)
Business highlights: Ahold USA (2/2) Making significant improvements in our customer offering Improved Fresh offering Enhanced customer experience Targeted price reductions • Taking a more tailored approach • Investing 400 hours per store in • Investing in price to address assortment gaps customer e
Slide 8: the Netherlands (1/2)
Business highlights: the Netherlands (1/2) European reorganization implemented • As part of Simplicity, a reorganization was implemented to: • Make the head office support roles more efficient • Streamline the commercial organization at Albert Heijn to enable a greater focus on improving quality and
Slide 9: the Netherlands (2/2)
Business highlights: the Netherlands (2/2) Focus on improving our quality and value offering Albert Heijn continued Successful to develop 'healthy redevelopment of Albert food' proposition Heijn to go format Introducing new natural Showing positive identical and organic products sales growth support
Slide 10: Czech Republic (1/2)
Business highlights: Czech Republic (1/2) Continued improvements in customer offering and financial results Rollout of improvements to Continued to improve Produce category profitability to 2.0% in Q2 2014 Leveraging new supply Supported by Simplicity initiatives chain and local growers in cost of g
Slide 11: Czech Republic (2/2)
Business highlights: Czech Republic (2/2) Acquisition of Czech SPAR stores successfully completed • Will make Albert the leading brand in the Czech food retail market • Rebranding of stores expected to be finalized within one year • Turnaround of a loss-making operation into one strong combined busi
Slide 12: Continue to strengthen our leading online positions
Continue to strengthen our leading online positions • Plaza sales up 121% in Q2 2014, • Double-digit sales growth • Continued strong growth now representing • New semi-automated warehouse • Ongoing openings of pick-up points 16% of total in New Jersey opened: will almost • Customer awareness of AH’s
Slide 13: Outlook
Outlook • We expect that ongoing investments in our customer proposition and further development of our product range across multiple categories will result in improving sales trends. • For the year we still expect to deliver close to €300 million in cost savings from our Simplicity program, in line
Slide 14: Cautionary notice
Cautionary notice • This presentation includes forward-looking statements, which do not refer to historical facts but refer to expectations based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events