Koninklijke Ahold Delhaize N.v. · EURONEXT:AD

Koninklijke Ahold Delhaize — Shareholder Meeting (April 2018)

61 slides from Koninklijke Ahold Delhaize's shareholder meeting presentation, Apr 11, 2018

  1. Slide 1: Annual General Meeting of Shareholders

    Annual General Meeting of Shareholders April 11, 2018

  2. Slide 2: Jan Hommen

    Jan Hommen Vice Chairman Supervisory Board

  3. Slide 3: Agenda item 1 / Agendapunt 1

    Agenda item 1 / Agendapunt 1 • Opening Annual General Meeting 2018 3

  4. Slide 4: Agenda items 2 – 7 / Agendapunten 2 – 7

    Agenda items 2 – 7 / Agendapunten 2 – 7 2: Report of the Management Board for the financial year 2017 3: Explanation of corporate governance 4: Explanation of policy on additions to reserves and dividends 5: Explanation of the implementation of the Management Board remuneration policy 6: Proposal to

  5. Slide 5: Dick Boer

    Dick Boer President & Chief Executive Officer 5

  6. Slide 6: Our world is changing

    Our world is changing Annual General Meeting 2018 6

  7. Slide 7: Our world is changing

    Our world is changing Annual General Meeting 2018 7

  8. Slide 8: The most local and personal

    The most local and personal Europe United States ENA Albert Albert Heijn Alfa Beta bol.com Delhaize Le Lion Etos Cash & Carry Food Lion GIANT/MARTIN’S Gall & Gall Maxi Mega Image Pingo Doce Tempo Giant Food Peapod Indonesia Hannaford Stop & Shop Super Indo Annual General Meeting 2018 8

  9. Slide 9: The most local and personal: A great store experience

    The most local and personal A great store experience Annual General Meeting 2018 9

  10. Slide 10: The most local and personal: A great store experience

    The most local and personal A great store experience Annual General Meeting 2018 10

  11. Slide 11: The most local and personal: Fresh and healthy

    The most local and personal Fresh and healthy Annual General Meeting 2018 11

  12. Slide 12: The most local and personal: Fresh and healthy

    The most local and personal Fresh and healthy Annual General Meeting 2018 12

  13. Slide 13: Personalization through online and digitalization

    The most local and personal Personalization through online and digitalization Annual General Meeting 2018 13

  14. Slide 14: The most local and personal: Technology & innovation

    The most local and personal Technology & innovation Annual General Meeting 2018 14

  15. Slide 15: Sound financials and strong governance

    Sound financials and strong governance Higher sales Increased margins Strong free cash flow € in million € in million 62,694 3.9% 1,926 3.7% 62,331 1,377 2016 2017 2016 2017 2016 2017 Annual General Meeting 2018 15

  16. Slide 16: Sound financials and strong governance

    Sound financials and strong governance Kevin Holt Wouter Kolk Ben Wishart Chief Executive Officer Chief Operating Officer Global Chief Ahold Delhaize USA the Netherlands and Information Belgium Officer Proposed member of the Management Board Annual General Meeting 2018 16

  17. Slide 17: The most local and personal

    The most local and personal Annual General Meeting 2018 17

  18. Slide 18: Annual General Meeting 2018

    Annual General Meeting 2018 18

  19. Slide 19: Jan Hommen

    Jan Hommen Vice Chairman Supervisory Board

  20. Slide 20: Agenda item 3 / Agendapunt 3

    Agenda item 3 / Agendapunt 3 3: Explanation of corporate governance 3: Toelichting op de Ondernemingsstructuur Annual General Meeting 2018 20

  21. Slide 21: Dick Boer

    Dick Boer President & Chief Executive Officer

  22. Slide 22: Agenda item 3 / Agendapunt 3

    Agenda item 3 / Agendapunt 3 3: Explanation of corporate governance 3: Toelichting op de Ondernemingsstructuur Annual General Meeting 2018 22

  23. Slide 23: Frans Muller

    Frans Muller Deputy Chief Executive Officer and Chief Integration Officer

  24. Slide 24: Jan Hommen

    Jan Hommen Vice Chairman Supervisory Board

  25. Slide 25: Jeff Carr

    Jeff Carr Chief Financial Officer

  26. Slide 26: Group performance: Net sales up 1.7%, margin expanded to 3.9%

    Group performance Net sales up 1.7% and margin expanded by 20 bps to 3.9% € in million Full year 2017 2016 Change Change actual rates constant rates Net sales 62,694 62,331 0.6% 1.7% Net sales excl gas 1.6% Underlying EBITDA 4,247 4,063 4.5% 5.9% Underlying EBITDA margin 6.8% 6.5% Underlying operati

  27. Slide 27: Group performance: Income up 70%, dividend per share up 10.5%

    Group performance Income from cont. operations up 70% , dividend per share up 10.5% € in million Full year 2017 2016 Change actual rates Underlying operating income 2,456 2,298 6.9% Restructuring and related charges 178 246 Other 42 78 Operating income 2,236 1,974 13.3% Net financial expenses (297)

  28. Slide 28: Ahold Delhaize delivering performance

    Ahold Delhaize delivering performance Net sales increasing Best-in-class underlying operating margin € in million 62,694 expanding further 3.9% 62,331 3.7% 3.5% 60,881 2015 2016 2017 2015 2016 2017 Free cash flow yield ¹ increasing and ahead of peers Continued commitment to investing in our business

  29. Slide 29: Performance by segment

    Performance by segment Strong performance in Delhaize America & The Netherlands € in million Full year Delhaize Ahold USA The Netherlands Belgium CSE America 2017 Change 2017 Change 2017 Change 2017 Change 2017 Change constant rates constant rates constant rates Net sales 22,894 0.1% 15,395 1.3% 13,

  30. Slide 30: Synergies delivered ahead of plan

    Synergies delivered ahead of plan €268 million delivered in 2017 € in million Quarter 4 Full year Timeline 2016 – 2019 2017 2016 2017 2016 € in million 500 420 United States 51 8 159 8 268 Europe 25 7 78 7 GSO* 7 4 31 7 Total 83 19 268 22 22 * Global Support Office 2016 2017 2018 2019 • Net synergie

  31. Slide 31: Tax reform U.S. and Belgium

    Tax reform U.S. and Belgium Tax benefits provide investment options and profitability increases • One-time tax effect in Q4 2017: €407 million, non cash • Impact tax reform on 2018: – Cash tax benefit of around €200 million – Effective tax rate expected to be in the low twenty percent range € in mil

  32. Slide 32: Free cash flow and working capital

    Free cash flow and working capital * Exceptionally strong cash flow in 2017, also expected for 2018 Outstanding free cash flow generation in 2017 Working capital improvement well on track for cumulative target of €175 mln 2016-2018 € in million € in million 1,926 c. 1,900 1,812 1,702 c. 175 1,377 13

  33. Slide 33: Uses of cash

    Uses of cash Strong cash flow used for higher investments and increasing returns Higher capital expenditure planned Increasing shareholder returns € in million € in million, dividend per share in € 1,900 3000 0.7 0.63 1,694 1,698 1,580 0.57 0.6 2500 0.52 0.48 0.5 2000 2,000 0.4 1500 1,000 0.3 1,001

  34. Slide 34: Capital structure

    Capital structure Reduced net debt, strong capital structure continued € in billion € in billion 7.6 7.3 0.7 3.2 2.5 1.0 Cash * -0.5 Gross debt 3.2 Net debt 2.5 -1.9 (4.3) (4.7) Net debt YE FCF SBB 2016 Dividend FX & other Net debt YE YE 2016 YE 2017 2016 generation 2017 • 2017 full year leverage ra

  35. Slide 35: Important dates

    Important dates Timetable dividend • April 13, 2018 Ex-dividend date • April 16, 2018 Dividend record date • April 26, 2018 Payment date Timetable quarterly results • Ahold Delhaize Q1 2018 results May 9, 2018 • Ahold Delhaize Q2 2018 results August 8, 2018 • Ahold Delhaize Q3 2018 results November

  36. Slide 36: Summary 2017 and outlook 2018

    Summary 2017 and outlook 2018 Reflecting on successful 2017, confident about outlook 2018 • 2017 has been a successful year for Ahold Delhaize • Net sales of €62.7 billion in 2017, up 1.7% at constant exchange rates • Close to €3 billion in net consumer online sales, growth of 21.8% in 2017 • Margin

  37. Slide 37: Jan Hommen

    Jan Hommen Vice Chairman Supervisory Board

  38. Slide 38: Bill McEwan

    Bill McEwan Chairman of the Remuneration Committee

  39. Slide 39: Implementation of the Management Board Remuneration Policy

    Explanation of the implementation of the Management Board Remuneration Policy Annual Cash Incentive Plan Performance Year Performance Year 2017 2016 2015 2014 2013 Payout as % of target 93% 108% 135% 45% 89% Performance measures current policy • Net sales growth (30%) • Operating Underlying Margin (

  40. Slide 40: Implementation of the Management Board Remuneration Policy

    Explanation of the implementation of the Management Board Remuneration Policy Internal Pay Ratio External Context Pay ratio between the Total Remuneration of the Pay ratio Ahold Delhaize CEO compared to pay ratios of respective Management Board members and the average other CEOs in the peer group (2

  41. Slide 41: Cautionary Notice

    Cautionary Notice This communication includes forward-looking statements. All statements other than statements of historical facts may be forward-looking statements. Words such as ambition, to be, will, always, continue, predict, never, later, future, forever, remaining, can, goal, intend, 2020, tar

  42. Slide 42: Jan Hommen

    Jan Hommen Vice Chairman Supervisory Board

  43. Slide 43: Agenda items 2 – 7 / Agendapunten 2 – 7

    Agenda items 2 – 7 / Agendapunten 2 – 7 2: Report of the Management Board for the financial year 2017 3: Explanation of corporate governance 4: Explanation of policy on additions to reserves and dividends 5: Explanation of the implementation of the Management Board remuneration policy 6: Proposal to

  44. Slide 44: Questions & Answers

    Questions & Answers

  45. Slide 45: Voting procedure / Stemprocedure

    Voting procedure / Stemprocedure • Register your vote by pressing 1, 2 or 3 • Om te stemmen, druk 1, 2 of 3 1 = for voor 2 = against tegen 3 = abstention onthouding • To correct a vote, please make your choice again. Your last choice will be registered. • Om een stem te corrigeren, dient u opnieuw e

  46. Slide 46: Agenda item 6 / Agendapunt 6

    Agenda item 6 / Agendapunt 6 • Proposal to adopt the 2017 financial statements • Voorstel tot vaststelling van de jaarrekening over het boekjaar 2017 Annual General Meeting 2018 46

  47. Slide 47: Agenda item 7 / Agendapunt 7

    Agenda item 7 / Agendapunt 7 • Proposal to determine the dividend over financial year 2017 • Voorstel tot vaststelling dividend over het boekjaar 2017 Annual General Meeting 2018 47

  48. Slide 48: Agenda items 8 – 16 / Agendapunten 8 – 16

    Agenda items 8 – 16 / Agendapunten 8 – 16 8: Proposal for discharge of liabilities of the members of the Management Board 9: Proposal for discharge of liabilities of the members of the Supervisory Board 10: Proposal to appoint Wouter Kolk as member of the Management Board 11: Proposal to re-appoint

  49. Slide 49: Agenda item 8 / Agendapunt 8

    Agenda item 8 / Agendapunt 8 • Proposal for discharge of liabilities of the members of the Management Board • Voorstel tot het verlenen van décharge aan de leden van de Raad van Bestuur Annual General Meeting 2018 49

  50. Slide 50: Agenda item 9 / Agendapunt 9

    Agenda item 9 / Agendapunt 9 • Proposal for discharge of liabilities of the members of the Supervisory Board • Voorstel tot het verlenen van décharge aan de leden van de Raad van Commissarissen Annual General Meeting 2018 50

  51. Slide 51: Wouter Kolk

    Wouter Kolk Chief Operating Officer the Netherlands and Belgium Proposed member of the Management Board

  52. Slide 52: Agenda item 10 / Agendapunt 10

    Agenda item 10 / Agendapunt 10 • Proposal to appoint Wouter Kolk as member of the Management Board • Voorstel tot benoeming van Wouter Kolk tot de Raad van Bestuur Annual General Meeting 2018 52

  53. Slide 53: Agenda item 11 / Agendapunt 11

    Agenda item 11 / Agendapunt 11 • Proposal to re-appoint René Hooft Graafland as member of the Supervisory Board • Voorstel tot herbenoeming van René Hooft Graafland voor een nieuwe termijn van de Raad van Commissarissen Annual General Meeting 2018 53

  54. Slide 54: Agenda item 12 / Agendapunt 12

    Agenda item 12 / Agendapunt 12 • Proposal to appoint PricewaterhouseCoopers Accountants N.V. as external auditor for financial year 2018 • Voorstel tot benoeming van PricewaterhouseCoopers Accountants N.V. als externe accountant voor het boekjaar 2018 Annual General Meeting 2018 54

  55. Slide 55: Agenda item 13 / Agendapunt 13

    Agenda item 13 / Agendapunt 13 • Authorization to issue shares • Machtiging tot uitgifte van aandelen Annual General Meeting 2018 55

  56. Slide 56: Agenda item 14 / Agendapunt 14

    Agenda item 14 / Agendapunt 14 • Authorization to restrict or exclude pre-emptive rights • Machtiging tot het beperken of uitsluiten van voorkeursrechten Annual General Meeting 2018 56

  57. Slide 57: Agenda item 15 / Agendapunt 15

    Agenda item 15 / Agendapunt 15 • Authorization to acquire shares • Machtiging tot inkoop van eigen aandelen Annual General Meeting 2018 57

  58. Slide 58: Agenda item 16 / Agendapunt 16

    Agenda item 16 / Agendapunt 16 • Cancellation of common shares • Intrekking van gewone aandelen Annual General Meeting 2018 58

  59. Slide 59: Agenda item 17 / Agendapunt 17

    Agenda item 17 / Agendapunt 17 • Closing • Sluiting Annual General Meeting 2018 59

  60. Slide 60: Questions & Answers

    Questions & Answers

  61. Slide 61: Thank you

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