Koninklijke Ahold Delhaize N.v. · EURONEXT:AD
Koninklijke Ahold Delhaize — Q3 2017 Earnings Presentation
22 slides from Koninklijke Ahold Delhaize's earnings presentation, Nov 8, 2017
Slide 1: Third Quarter 2017 Results
Third Quarter 2017 Results November 8, 2017
Slide 2: Q3 Highlights
Q3 Highlights Dick Boer President and CEO
Slide 3: Highlights – third quarter 2017
Third Quarter 2017 Results 3 Highlights – third quarter 2017 • Pro forma net sales up 2.1% at constant exchange rates to €15.1 billion • Strong sales performance in the U.S., gaining market share across our brands • Online businesses growing total net consumer sales by more than 20% • Pro forma unde
Slide 4: Financial Results
Financial Results Jeff Carr CFO
Slide 5: Group performance - pro forma
Third Quarter 2017 Results 5 Group performance - pro forma € in million Quarter 3 2017 2016 Change Change actual rates constant rates Net sales 15,121 15,282 (1.1)% 2.1% Net sales excl gas 14,887 15,059 (1.1)% 1.9% Underlying EBITDA 1,029 981 4.9% 8.4% Underlying EBITDA margin 6.8% 6.4% Underlying o
Slide 6: Ahold USA – pro forma results Q3 2017
Third Quarter 2017 Results 6 Ahold USA – pro forma results Q3 2017 Net sales Comparable sales growth 1 € in million • Net sales up 0.8% at 36 23 constant rates -284 -14 • Comparable sales ex gas 5,665 up 0.7% 5,381 5,425 • Retail inflation of 0.9% 0.7% -0.1% -0.5% -1.8% 0.3% • Gaining market share Q
Slide 7: Delhaize America – pro forma results Q3 2017
Third Quarter 2017 Results 7 Delhaize America – pro forma results Q3 2017 Net sales Comparable sales growth € in million • Net sales up 2.2% at 82 6 constant rates -197 • Comparable sales up 2.3% 3,888 3,691 3,780 • 20th consecutive quarter of 2.2% 2.3% volume growth at Food Lion 1.3% 1.3% 0.0% • Re
Slide 8: The Netherlands – pro forma results Q3 2017
Third Quarter 2017 Results 8 The Netherlands – pro forma results Q3 2017 Net sales Comparable sales growth € in million • Net sales up 4.1% 17 6.0% 111 • Comparable sales up 3.6% 4.9% (up 2.3% ex bol.com) 3.3% 3.6% 2.8% 3,277 3,148 • Retail inflation of 2.4% • Continued online sales Q3'16 Comp sales
Slide 9: Belgium – pro forma results Q3 2017
Third Quarter 2017 Results 9 Belgium – pro forma results Q3 2017 Net sales Comparable sales growth • Net sales flat € in million 3 • Comparable sales down -3 0.3% 1,213 1,213 • Retail inflation of 0.7% • Good performance at 1.3% affiliate stores offset by -0.9% -0.6% 0.0% -0.3% Q3'16 Comp sales New/
Slide 10: CSE – pro forma results Q3 2017
Third Quarter 2017 Results 10 CSE – pro forma results Q3 2017 Net sales Comparable sales growth 1 € in million • Net sales up 3.1% at 15 7 37 constant rates 5.7% • Comparable sales ex gas 3.5% 1,426 up 0.5%. Strong 1,368 1,382 1.7% performance in Romania, 1.5% 0.5% Serbia, and Czech Republic Q3'16 F
Slide 11: Free cash flow generation
Third Quarter 2017 Results 11 Free cash flow generation* € in million 2017 2016 Q3 YTD Q3 YTD Operating cash flow 951 3,006 798 2,727 Change in working capital (52) (391) (176) (575) Income tax paid – net (111) (328) (100) (319) Cash from cont. operations 788 2,287 522 1,833 Investments (397) (1,213
Slide 12: Synergies and One-time Costs update
Third Quarter 2017 Results 12 Synergies and One-time Costs update € in million 2017 Q3 YTD United States 36 108 Europe 22 53 Global Support Office 10 24 Ahold Delhaize Group Synergies 68 185 Program Expected Q3 YTD to date full costs Integration costs 16 94 262 380 Brand centric restructuring costs
Slide 13: New share buyback announced for 2018
Third Quarter 2017 Results 13 New share buyback announced for 2018 For 2018 we expect: • Increase in Free cash flow • Including step-up of capex to €1.9 billion • Online capital investments from €100 million in 2017 to €150 million in 2018 • Accelerating investments to drive digital transformation •
Slide 14: Business Highlights
Business Highlights Dick Boer President and CEO
Slide 15: Innovation drives loyalty and growth
Third Quarter 2017 Results 15 Innovation drives loyalty and growth Continued innovation provides a seamless online / in-store experience and makes shopping easier, hassle free, and more entertaining • Accelerating investments in our online businesses, on track to almost €3 billion online consumer sa
Slide 16: Business highlights – Ahold USA
Third Quarter 2017 Results 16 Business highlights – Ahold USA Further optimizing our own-brands: • Total AUSA more than 20,000 own-brand SKU’s, representing 38% of total sales • Introducing Nature’s Promise across other brands, increasing to 1400 SKU’s and building a $1.5 billion brand by 2020 • Gia
Slide 17: Business highlights – Delhaize America
Third Quarter 2017 Results 17 Business highlights – Delhaize America Food Lion shows volume growth for the 20th consecutive quarter: • Well positioned in current competitive environment • Successfully facing new competition in the Carolina’s Easy, Fresh & Affordable program roll-out continues: • Str
Slide 18: Business highlights – The Netherlands
Third Quarter 2017 Results 18 Business highlights – The Netherlands Albert Heijn ranked first externally on promotions; most bargains & highest discounts Optimizing customer experience using data analytics at Albert Heijn: • 14 million weekly personalized offers to more than 2 million customers • In
Slide 19: Business highlights – Belgium & CSE
Third Quarter 2017 Results 19 Business highlights – Belgium & CSE Belgium • Network expansion: • 18 new Delhaize stores in our network in 2017 • Renovation of 120 stores in 2017 on track • Loyalty campaign for fruits and vegetables; over 1 million “hug fruits and vegetables” distributed • Successful
Slide 20: Wrap up & Outlook 2017
Third Quarter 2017 Results 20 Wrap up & Outlook 2017 • Strong financial performance; increased sales growth and strong synergy delivery, resulting in margin expansion • Continued development of our online businesses; growth > 20% in the quarter, nearly €3 billion online consumer sales in 2017, close
Slide 21: Cautionary notice
Third Quarter 2017 Results 21 Cautionary notice This communication includes forward-looking statements. All statements other than statements of historical facts may be forward-looking statements. Words such as guidance, expected, step up, announced, continued, incremental, on track, in 2018, acceler
Slide 22: Thank you
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