Koninklijke Ahold Delhaize N.v. · EURONEXT:AD
Koninklijke Ahold Delhaize — Q4 2015 Earnings Presentation
27 slides from Koninklijke Ahold Delhaize's earnings presentation, Mar 3, 2016
Slide 1: Fourth quarter and full year 2015 results
Fourth quarter and full year 2015 results March 3, 2016
Slide 2: Group highlights
Group highlights Ahold reports strong results for Q4 and full year 2015, led by solid store performance and substantial increase in online sales 21.4% increase in Q4 Group sales to €9.8 billion (up 11.8% at constant rates) 4.3% increase in Q4 Group sales excluding gas (at constant rates and adju
Slide 3: Group highlights 2015
Group highlights 2015 Strong results driven by solid store performance and substantial increase in online sales Ahold USA The Netherlands Czech Republic Ongoing focus on rollout of U.S. Albert Heijn’s focus on Fresh, Strengthened commercial and customer value proposition innovation and healthy
Slide 4: Total sales performance
Total sales performance (in millions of euro’s) Quarter 4 Full year 2015 change change 2015 change change actual rates constant rates actual rates constant rates Sales 9,786 21.4% 11.8% 38,203 16.6% 4.3% Sales growth adjusted for 53rd week 11.9% 3.1% 14.2% 2.3% Sales growth excl gas adjusted for 53r
Slide 5: Operating performance
Operating performance (in millions of euro’s) Quarter 4 Full year 2015 change change 2015 change change actual constant actual constant rates rates rates rates Strong Q4 sales resulting from the Sales 9,786 21.4% 11.8% 38,203 16.6% 4.3% additional week, solid holiday season and continued online gr
Slide 6: Income from continuing operations
Income from continuing operations (in millions of euro’s) Full year 2015 2014 change actual rates Underlying operating income 1,461 1,267 15.3% Restructuring and related charges (106) (65) Other (37) 48 Operating income 1,318 1,250 5.4% Net financial expenses (265) (235) (12.8%) Income taxes (224) (
Slide 7: Q4 sales development – Ahold USA
Q4 sales development – Ahold USA (in millions of US dollars) Adjusted sales increase driven by: › Continued investment in customer proposition -1.8% 1.6% 2.6% › Successful rebranding of 25 A&P stores 8.3% › Market consolidation impact Customer price perception improving further 6,624 Lower gas
Slide 8: Q4 sales development – The Netherlands
Q4 sales development – The Netherlands (in millions of euro's) Strong holiday season at Albert Heijn Innovation, focus on Fresh and healthier 3.3% 2.7% 9.0% choices resonated with customers and drove sales growth Record high online sales, with over 30% 3,265 growth for bol.com and ah.nl 2,839
Slide 9: Q4 sales development – Czech Republic
Q4 sales development – Czech Republic (in millions of euro's, at constant rates) Identical sales impacted by inclusion of -0.1% former SPAR stores 6.2% -0.5% -1.4% Increased customer perception scores Net sales impacted by divestment of stores 443 4.2% following antitrust ruling 461 Q4 2014 We
Slide 10: Underlying operating income by segment
Underlying operating income by segment (in millions of euro’s) Quarter 4 Full year 2015 change change 2015 change change actual rates constant rates actual rates constant rates Ahold USA 259 43.9% 25.2% 940 27.4% 6.4% Balanced investments in customer Underlying operating 4.3% 0.5 0.5 4.0% 0.2 0.2
Slide 11: Simplicity cost and efficiency improvement program
Simplicity cost and efficiency improvement program All our businesses have successful cost and efficiency Functional split 2015 (in %) improvement programs underway Commercial improvements Delivered over €400 million in 2015: 38 50 Overhead reduction Commercial improvements Operational efficienc
Slide 12: Free cash flow and uses of cash
Free cash flow and uses of cash (in millions of euro’s) Strong free cash flow Balanced approach to capital allocation Operating cash flow* 2,139 Cash capex (804) Disposals 51 1,184 1,109 Other (202) 1,051 1,055 Free cash flow 1,184 845 Acquisitions / divestments (150) Dividend (396) Share buyback (1
Slide 13: Capital structure
Capital structure (in billions of euro’s) Increase in cash, reduction of net debt Cash and short-term investments Lease adjusted leverage decreased Gross debt Net debt Cash balances* up €0.5 billion to €2.4 3.5 billion 3.2 €161 million share buyback completed in 1.3 1.1 2015. Program stopped aft
Slide 14: Outlook 2016
Outlook 2016 Underlying operating margins expected to trend in line with full year 2015, excluding the potential impact from the proposed merger with Delhaize Ongoing customer proposition investments to be funded through Simplicity cost saving and efficiency program, that is expected to deliver
Slide 15: Ahold USA
Ahold USA Proposition improvements continue Transformation of strategic position Own-brand sales developing with good results in NYM market towards target Produce departments > 470 stores, Transformed strategic position in New Own-brand penetration 38% of sales completed by Q3 2016 York Metro
Slide 16: The Netherlands
The Netherlands Strong recovery and market share Touching customers’ hearts and Delivering a warm Christmas growth during the year minds experience Growing share by 90 bps during the Attractive customer campaigns Lifting food experience and inspiration year to 35% to a next level Personalize
Slide 17: Czech Republic
Czech Republic Good supermarket performance continues, larger former Building better brand position of Albert SPAR store results gradually improving Positive sales development following implementation of Favorite Albert wins prestigious Czech National Award for Quality for the concept in all sup
Slide 18: Maximize potential through online growth strategy
Maximize potential through online growth strategy Net consumer sales growth 2015 to €1.8 billion, up 33.3% versus last year (23.1% at constant rates and adjusted for the additional week) Online growth ambition: 20-25% CAGR Continue to invest in our leading online brands: Bol.com further developed
Slide 19: bol.com
bol.com The growth story continues this Extremely successful holiday Further assortment expansion quarter performance Adjusted net consumer sales growth over Sales growth of over 50% during Game- & software downloads for game 35% Christmas week lovers More than 120 million visits 11 articl
Slide 20: Ah.nl
Ah.nl The #1 online grocer in the Highly focused on customer, Allerhande.nl favorite recipe Netherlands innovation and assortment website in the Netherlands Offering online grocery, inspiration and Track & Trace; informing customers Over 54 million visits in 2015 shopping support upfront of de
Slide 21: Peapod
Peapod Robust identical sales growth in New store accessible to 100% of Assortment enhancements that expansion markets customers meet customer demands NYC new customer and sales growth Our stores now accessible to 100% of Launched own-brand meal kits to increased 45% in Q4 customers, driving v
Slide 22: Responsible retailing
Responsible retailing Proud to announce we have met >80% of our targets, vision for 2020 published today Ambition: Ambition: Ambition: Ambition: Ambition: Make healthy living choises easy Contribute to the well-being of our Provide a better place to work, and Source our products – including their Re
Slide 23: Excited about the upcoming merger
Excited about the upcoming merger Integration teams fully up to speed, getting ready for day one Final decision BCA expected second half of March ’16; FTC procedure in progress Synergy capturing program progressing well; target of €500 million run-rate in 3 years after completion still viewed
Slide 24: Wrap up
Wrap up Great progress during the year, with strong operating and financial results In the U.S., the journey to improve the customer proposition is bearing fruit; great job by the NYM team to step up our strategic position in that market and strong growth in the natural and organic categories
Slide 25: Legal notices
Legal notices No offer or solicitation This communication is being made in connection with the proposed business combination transaction between Koninklijke Ahold N.V. also known as Royal Ahold (“Ahold”) and Delhaize Group NV/SA (“Delhaize”). This communication is not intended to and does not consti
Slide 26: Legal notices
Legal notices 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 actual results,
Slide 27: Thank you
® Ahold Thank you = Vn YW . WH Ty Tt
Koninklijke Ahold Delhaize — Q4 2015 Earnings Presentation on 6ix