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Koninklijke Ahold Delhaize — Q1 2017 Earnings Presentation

18 slides from Koninklijke Ahold Delhaize's earnings presentation, May 10, 2017

  1. Slide 1: First Quarter 2017 Results

    1 First Quarter 2017 Results May 10, 2017

  2. Slide 2: Highlights - first quarter 2017

    First Quarter 2017 Results 2 Highlights - first quarter 2017 • Ahold Delhaize reports higher margins with strong synergy delivery and resilient sales • Pro forma net sales increased by 2.9% to €15.8 billion (up 0.6% at constant exchange rates) • Pro forma underlying operating income increased by €45

  3. Slide 3: Synergy Savings

    First Quarter 2017 Results 3 Synergy Savings Timeline 2016 – 2019 € in million € in million Q1 2017 500 420 United States 35 220 Europe 15 Global Support Office 6 22 Ahold Delhaize Group 56 2016 2017 2018 2019 • Committed to deliver net synergies of €500 million in 2019, incremental to underlying op

  4. Slide 4: Group performance - pro forma

    First Quarter 2017 Results 4 Group performance - pro forma € in million Quarter 1 2017 2016 Change Change actual rates constant rates Net sales 15,766 15,324 2.9% 0.6% Net sales excl gas 15,525 15,134 2.6% 0.3% Underlying EBITDA 1,058 995 6.3% 3.7% Underlying EBITDA margin 6.7% 6.5% Underlying opera

  5. Slide 5: Ahold USA – pro forma results Q1 2017

    First Quarter 2017 Results 5 Ahold USA – pro forma results Q1 2017 Net sales Comparable sales growth ¹ € in million • Net sales decreased by 1.4% 216 41 at constant rates - 105 -20 • Comparable sales ex gas 6,053 2.0% 5,837 5,969 down by 1.8%, affected by 1.3% deflation of 1.3% and A&P re- -0.1% -0.

  6. Slide 6: Delhaize America – pro forma results Q1 2017

    First Quarter 2017 Results 6 Delhaize America – pro forma results Q1 2017 Net sales Comparable sales growth € in million • Net sales grew 0.1% at 140 2 constant rates • Comparable sales were flat, 3.0% 3,943 2.0% 2.2% 3,801 3941 affected by deflation of 1.7% 1.3% • Continued positive volume 0.0% gro

  7. Slide 7: The Netherlands – pro forma results Q1 2017

    First Quarter 2017 Results 7 The Netherlands – pro forma results Q1 2017 Net sales Comparable sales growth € in million • Net sales grew 3.9% 23 6.0% 102 • Comparable sales up 3.3% 4.4% 3,298 3.0% 3.3% • Inflation of 2.2% 2.8% 3,173 • Continued strong online net consumer sales growth Q1'16 Comp sale

  8. Slide 8: Belgium – pro forma results Q1 2017

    First Quarter 2017 Results 8 Belgium – pro forma results Q1 2017 Net sales Comparable sales growth € in million • Net sales decreased by 1.1% -7 -6 • Inflation of 2.0% 3.9% • Comparable sales down 0.6% 2.6% 1,194 1,181 mainly due to a weaker 1.3% performance in integrated -0.6% -0.9% supermarkets Q1

  9. Slide 9: CSE – pro forma results Q1 2017

    First Quarter 2017 Results 9 CSE – pro forma results Q1 2017 Net sales • Net sales grew 4.4% at Comparable sales growth ¹ € in million 7.4% 36 constant rates 6.5% 22 5.7% -2 • Comparable sales ex gas up 1.5%, driven by Romania and 3.5% 1,317 1,375 1,319 Serbia 1.5% • Slightly lower comparable sales

  10. Slide 10: Free cash flow generation

    First Quarter 2017 Results 10 Free cash flow generation * € in million 2 12 248 -85 197 46 -26 FCF Q1'16 Operating cash Change in working Income tax paid Net investment Interests and FCF Q1'17 flow capital dividends joint ventures • Strong FCF generated for Q1 2017 which increased €223 million compa

  11. Slide 11: Outlook 2017

    First Quarter 2017 Results 11 Outlook 2017 • In the United States, we expect sales performance to improve in the second quarter and to operate in a slightly inflationary environment in the second half of the year. • We re-iterate our target for 2017 of realizing €220 million net synergies, including

  12. Slide 12: Business Highlights

    Business Highlights

  13. Slide 13: Business highlights: Price perception

    First Quarter 2017 Results 13 Business highlights Ahold USA Delhaize America • Partnering with local produce farms results in year- • Food Lion continues strong volume trend and round sustainable and locally grown products maintains competitive price position • Easy, Fresh & Affordable roll-out in t

  14. Slide 14: Business highlights

    First Quarter 2017 Results 14 Business highlights The Netherlands Belgium • Launch of Appie Today: Albert Heijn’s social channel • Delhaize and GoodPlanet launched GoodCook, with customers and associates on YouTube workshops with school kids to promote healthy eating • AH to go continues strong sale

  15. Slide 15: Business highlights

    First Quarter 2017 Results 15 Business highlights Central & Southern Europe Global Online • Greece: strong promotions, market • ah.nl continued strong sales share gain in a contracting market, growth and won award ‘Best online competition strengthening grocery store of 2017’ • Czech Republic: succes

  16. Slide 16: Wrap up

    First Quarter 2017 Results 16 Wrap up • Resilient first quarter performance in deflationary U.S. markets • Integration on track, strong synergy delivery • Increased margins for the Group compared to Q1 2016 • Strong free cash flow with increased capital expenditure • Improving U.S. sales performance

  17. Slide 17: Cautionary notice

    First Quarter 2017 Results 17 Cautionary notice This communication includes forward-looking statements. All statements other than statements of historical facts may be forward-looking statements. Words such as resilient, on track, committed, incremental, plan, expect, improve, target, sustainable, c

  18. Slide 18: Thank you

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