Delhaize Group SA — FY2015 Earnings Presentation
14 slides from Delhaize Group SA's earnings presentation, Mar 4, 2016
Slide 1: Q4 and FY 2015 results
Q4 and FY 2015 results March 3, 2016
Slide 2: Forward looking statements
Forward looking statements NO OFFER OR SOLICITATION This communication is not intended to and does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities or the solicitation of any vote or approval in any j
Slide 3: Forward looking statements
Forward looking statements FORWARD-LOOKING STATEMENTS This communication contains 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 ac
Slide 4: 2015 highlights
2015 highlights 18% UOP growth at actual rates (4% at identical rates)(1) Free Cash Flow (excl. one-time elements) of €646m (€586m in 2014) Group 12.5% increase in gross dividend to €1.80 per share Dow Jones Sustainability Index inclusion CSS growth of 2.2% with solid 2.5% real sales growth 4.0% und
Slide 5: Financial results – FY 2015
Financial results – FY 2015 FY % Growth (€ in Millions) 2014(2) 2015 Actual Rates Identical Rates Revenues 21,361 24,395 14.2% 1.9% Revenues (excl 53rd week) 21,102 15.6% 3.2% Gross Margin 24.1% 24.3% 22 bps 2 bps SG&A as % of revenues 21.1% 21.2% 11 bps (2 bps) UOP(1) 762 14.4% 0.7% (1) 872 UOP (ex
Slide 6: EBITDA
EBITDA (€ in Millions) EBITDA Underlying EBITDA Q4 2015 Q4 2015 2014 excl. 188 1,142 350 1,314 53rd week At Identical 2014 +11% +4% 212 +86% 1,166 +7% 375 1,339 Rates 2015 351 1,222 388 1,362 2014 excl. 188 1,142 350 1,314 53rd week At Actual 2014 212 +104% +22% 375 +21% 1,339 +17% Rates 1,166 2015
Slide 7: Delhaize America—revenue growth and underlying operating margin
Delhaize America—revenue growth and underlying operating margin Revenue growth Underlying operating margin +0.4% 2014 excl. 3.8% -0.1% 53rd week 2015 Q4 +2.3% +2.6% 2014 4.2% 2015 4.1% CSS Expansion Calendar Organic impact revenue growth 0.0% 0.0% 2014 excl. 3.9% 53rd week +2.2% +2.2% 2014 4.1% 2015
Slide 8: Delhaize Belgium—revenue growth and underlying operating margin
Delhaize Belgium—revenue growth and underlying operating margin Revenue growth Underlying operating margin +0.3% +0.2% Q4 2014 1.9% 2015 Q4 +5.6% +5.1% Q4 2015 2.5% CSS Calendar Expansion Organic Impact Revenue Growth 2014 2.4% 0.0% +0.4% 2015 +1.3% +0.9% 2015 2.1% CSS Calendar Expansion Organic Imp
Slide 9: SEE—revenue growth and underlying operating margin
SEE—revenue growth and underlying operating margin Revenue growth Underlying operating margin +4.7% +1.0% +13.5% Q4 2014 7.1% 2015 Q4 +7.8% Q4 2015 7.2% CSS Calendar Expansion Organic Impact Revenue Growth 2014 4.4% +6.3% 2015 +0.4% +10.2% +3.5% 2015 4.7% CSS Calendar Expansion Organic Impact Revenu
Slide 10: Free Cash Flow generation
Free Cash Flow generation (€ in Millions) 2015 Free Cash Flow evolution 305 275 1,381 774 646 9 85 518 32 25 14 EBITDA Changes Net Cash Other Operating Transfor Merger Fine Divestiture FCF in core payment capex FCF mation related competition Bottom working of interest Plan costs authority in Dollar
Slide 11: We have significantly reduced our net debt
We have significantly reduced our net debt (€ in Millions) Net debt Underlying EBITDA Dec-11 2,660 2012 1,423 Dec-12 2,072 2013 1,350 Dec-13 1,473 -1,879 2014 1,339 Dec-14 997 2015 1,538 Dec-15 781 (1) 2011 is not adjusted for disposals 11
Slide 12: We have maintained our capex discipline
We have maintained our capex discipline (€ in Millions) Geography Category 606 774 606 774 New stores 17% 14% US 46% 55% Remodelings 34% 44% Belgium 21% Distribution Centers 11% 20% 10% HQ & IT 15% 13% SEE 28% 23% 23% Maintenance & Other 19% Corporate 5% 2% 2014 2015 2014 2015 12
Slide 13: Board proposes a 12.5% increase in our gross dividend
Our Board of Directors proposes a 12.5% increase in our gross dividend (€ in Millions) Underlying Group share in net profit from continuing operations 2014 165 466 2015 188 521 Gross dividend based on 35% payout ratio: €1.80 per share (€1.60 in 2014) 13
Slide 14: 2016 strategic priorities and outlook
2016 strategic priorities and outlook Complete the merger on schedule with Ahold by mid 2016 Group Continued capital discipline as per our plan to spend €825 million Remodel 142 Food Lion stores Open ~15 Hannaford to Go sites, bringing the total to ~35 by end 2016 US Focus on maintaining CSS momentu