Koninklijke Ahold Delhaize N.v. · EURONEXT:AD
Koninklijke Ahold Delhaize — Koninklijke Ahold — Shareholder Meeting (April 2014)
58 slides from Koninklijke Ahold Delhaize's shareholder meeting presentation, Apr 16, 2014
Slide 1: Annual General Meeting of Shareholders 2014
Annual General Meeting of Shareholders 2014 Welcome April 16, 2014
Slide 2: Agenda item 1: Opening
Agendapunt 1 / Agenda item 1 • Opening Amsterdam, April 16, 2014 2
Slide 3: Agenda item 2: Report of the Management Board
Agendapunt 2 / Agenda item 2 • Verslag van de Raad van Bestuur over het boekjaar 2013 • Report of the Management Board for financial year 2013 Amsterdam, April 16, 2014 3
Slide 4: Dick Boer, Chief Executive Officer
Dick Boer Chief Executive Officer 4
Slide 5: Amsterdam, April 16, 2014
Amsterdam, April 16, 2014 5 ~A Ahold
Slide 6: Reshaping Retail framework
Reshaping Retail framework Amsterdam, April 16, 2014 6
Slide 7: Group highlights 2013
Group highlights 2013 Financial Actively shaping Focus on performance our portfolio growth • Sales up 2.0% at constant • Successfully sold our • Further invested in our exchange rates with a stake in ICA customer offering challenging second half of • Exited New Hampshire • Achieved online sales the
Slide 8: Our promises are how we get better every day
Our promises are how we get better every day Amsterdam, April 16, 2014 8
Slide 9: Amsterdam, April 16, 2014
Amsterdam, April 16, 2014 9
Slide 10: Amsterdam, April 16, 2014
Peaped A StopsShop “ Lies Amsterdam, April 16, 2014 10 ~ Ahold
Slide 11: Amsterdam, April 16, 2014
Persoonilijke service, Belgische kwaliteit en Hollandse prijzen. Amsterdam, April 16, 2014 11 ® Ahold
Slide 12: Ahold is building a true omni-channel business
Ahold is building a true omni-channel business Strong online sales growth expected to Our brands continue (in million euros) Amsterdam, April 16, 2014 12
Slide 13: Amsterdam, April 16, 2014
Amsterdam, April 16, 2014 13 ~A Ahold
Slide 14: Better place to shop, work, neighbor
Better place to shop Better every day Better Better place to work neighbor Amsterdam, April 16, 2014 14 ~ Ahold
Slide 15: Amsterdam, April 16, 2014
Amsterdam, April 16, 2014 15
Slide 16: Amsterdam, April 16, 2014
a6 ® Ahold Amsterdam, April 16, 2014
Slide 17: Better place to shop, work, neighbor
Better place to shop Better every day Better Better place to work neighbor Amsterdam, April 16, 2014 17 ~ Ahold
Slide 18: Amsterdam, April 16, 2014
Amsterdam, April 16, 2014 18 ~A Ahold
Slide 19: The local route
ACAI BERRY aes Oa ee, se at (5>" The local route sai FE basi a Amsterdam, April 16, 2014 19 ~A Ahold
Slide 20: Amsterdam, April 16, 2014
a“ rk April 16, 2014 Amsterdam,
Slide 21: Dow Jones Sustainability Index
Dow Jones Sustainability Index 9% Amsterdam, April 16, 2014 21
Slide 22: Executive Committee
Executive Committee Exco group photo Amsterdam, April 16, 2014 22
Slide 23: Supervisory Board
Supervisory Board Amsterdam, April 16, 2014 23
Slide 24: Our strategy helps us leverage changing consumer trends
Our strategy helps us leverage changing consumer trends Amsterdam, April 16, 2014 24
Slide 25: Ahold brands
(Ahold NN wey StopsShop Gv: Gono ron Albert Heijn . - GIANT Better warms. = every day | albert Peaped ~ DeLcom® NW Giant Amsterdam, April 16, 2014 25 (Ahold
Slide 26: Thank you
Thank you Amsterdam, April 16, 2014 26
Slide 27: Jeff Carr, Chief Financial Officer
Jeff Carr Chief Financial Officer 27
Slide 28: Operating performance
Operating performance (in millions of euros) Full year Change at 2013 2012 Change constant rates Sales 32,615 32,682 (0.2%) 2.0% Gross profit margin 26.6% 26.4% 0.2 0.2 Underlying operating 1,379 1,412 (2.3%) (0.5%) income Underlying operating margin 4.2% 4.3% (0.1) (0.1) • A softer fourth quarter r
Slide 29: Operating performance by segment
Operating performance by segment (in millions) Ahold USA The Netherlands Czech Republic 2013 Change 2013 Change 2013 Change Sales $26,118 1.1% €11,494 4.0% €1,445 (4.7%) Underlying operating income $1,064 (2.9%) €619 0.7% €30 11.1% Underlying operating margin 4.1% (0.1) 5.4% (0.2) 2.1% 0.3 • In the
Slide 30: Simplicity cost savings program
Simplicity cost savings program Functional split Strong progress in cost savings program Overhead reduction: 10% • All our businesses have successful cost savings Commercial improvements: programs underway 60% Operational ef f iciencies: 30% • Delivered €295 million in 2013: • Commercial improvement
Slide 31: Adjusted net income
Adjusted net income (in millions of euros) Full year 2013 2012 Change Underlying operating income 1,379 1,412 (2.3%) Operating income 1,239 1,336 (7.3%) Net financial expenses (291) (208) (39.9%) Income taxes (153) (267) 42.7% Share in income (loss) of joint ventures 10 8 25.0% Income from continuin
Slide 32: Dividend
Dividend Dividend 2013 • €0.47 per common share Timetable • April 22, 2014 Ex-dividend date • April 24, 2014 Dividend record date • May 2, 2014 Payment date Amsterdam, April 16, 2014 32
Slide 33: Free cash flow
Free cash flow (in millions of euros) 1,109 1,029 1,051 925 845 2009 2010 2011 2012 2013 • Continued strong free cash flow of €1.1 billion in 2013 Amsterdam, April 16, 2014 33
Slide 34: Uses of cash
Uses of cash (in millions of euros) Continuous balanced investments Attractive shareholder returns 929 0.47 846 830 772 807 701 1,007 0.23 412 328 457 159 1,232 272 837 415 30 768 4 9 386 277 2009 2010 2011 2012 2013 2010 2011 2012 2013 2014* Capital expenditures Acquisitions (cash) Share buyback Di
Slide 35: Capital structure
Capital structure • Capital structure temporarily impacted by the sale of ICA (€2.5 billion) • Gross debt at €3.0 billion, down €0.2 billion • Cash balances up €2.1 billion to €4.0 billion • Net lease-adjusted debt / EBITDAR at 0.9 times (1.3 after capital repayment) • Continue to optimize cash posi
Slide 36: Financial strategy
Financial strategy Balanced investment in growth and return excess cash Return on capital • Top quartile of the sector Cash Capital structure Earnings generation • Net lease adjusted debt to EBITDAR around 2x growth • Liquidity around €2 billion • Committed to investment grade credit rating Dividend
Slide 37: Summary
Summary • Sales growth of 2.0% at constant exchange rates, with a tough second half of the year • Good progress on our cost savings program of €600 million for 2012-2014 • Continued strong free cash flow of €1.1 billion • Proposed dividend of €0.47, up 7% • Actively shaping our portfolio and focused
Slide 38: Remuneration policy 2013
Remuneration policy 2013 38
Slide 39: 2013 Remuneration policy
2013 Remuneration policy Purpose and link to strategy Policy Base salary The base salary supports the recruitment Base salaries are quoted in Euros and are and the retention of MB members with reviewed annually. the required skills and experience to implement Ahold’s strategy. Short term incenti
Slide 40: Cautionary notice
Cautionary notice These presentations includes 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, performance or events
Slide 41: Discussion agenda items 2, 3, 4, 5 and 6
Discussie agendapunten 2, 3, 4, 5 en 6 4 Discussion agenda items 2, 3, 4, 5 and 6 41
Slide 42: Voting is open
Stemming is geopend / Voting is open Om te stemmen, druk op 1, 2 of 3 Register your vote by pressing 1, 2 or 3 1 = voor / for 2 = tegen / against 3 = onthouding / abstention Correctie / Correction Maak opnieuw uw keuze. Uw laatste keuze geldt. Make your choice again. Your last choice will be registe
Slide 43: Agenda item 5
Agendapunt 5 / Agenda item 5 • Voorstel tot vaststelling van de jaarrekening over het boekjaar 2013 • Proposal to adopt 2013 financial statements Amsterdam, April 16, 2014 43
Slide 44: Agenda item 6
Agendapunt 6 / Agenda item 6 • Voorstel tot vaststelling dividend over het boekjaar 2013 • Proposal to determine the dividend over financial year 2013 Amsterdam, April 16, 2014 44
Slide 45: Agenda item 7
Agendapunt 7 / Agenda item 7 • Voorstel tot het verlenen van décharge aan de leden van de Raad van Bestuur • Discharge of liability of the members of the Management Board Amsterdam, April 16, 2014 45
Slide 46: Agenda item 8
Agendapunt 8 / Agenda item 8 • Voorstel tot het verlenen van décharge aan de leden van de Raad van Commissarissen • Discharge of liability of the members of the Supervisory Board Amsterdam, April 16, 2014 46
Slide 47: Agenda item 9
Agendapunt 9 / Agenda item 9 • Voorstel tot benoeming van de heer L.J. Hijmans van den Bergh voor een nieuwe termijn tot lid van de Raad van Bestuur met ingang van 16 april 2014 • Proposal to appoint Mr. L.J. Hijmans van den Bergh for a new term as a member of the Management Board, with effect from
Slide 48: Agenda item 10
Agendapunt 10 / Agenda item 10 • Voorstel tot benoeming van mevrouw J.A. Sprieser voor een nieuwe termijn tot lid van de Raad van Commissarissen met ingang van 16 april 2014 • Proposal to appoint Mrs. J.A. Sprieser for a new term as a member of the Supervisory Board, with effect from April 16, 2014
Slide 49: Agenda item 11
Agendapunt 11 / Agenda item 11 • Voorstel tot benoeming van de heer D.R. Hooft Graafland tot lid van de Raad van Commissarissen met ingang van 1 januari 2015 • Proposal to appoint Mr. D.R. Hooft Graafland as a member of the Supervisory Board, with effect from January 1, 2015 Amsterdam, April 16, 201
Slide 50: Agenda item 12
Agendapunt 12 / Agenda item 12 • Voorstel tot wijziging van de bezoldiging van de Raad van Commissarissen • Proposal to amend the remuneration of the Supervisory Board Amsterdam, April 16, 2014 50
Slide 51: Agenda item 13
Agendapunt 13 / Agenda item 13 • Benoeming Accountant • Appointment Auditor Amsterdam, April 16, 2014 51
Slide 52: Agenda item 14
Agendapunt 14 / Agenda item 14 • Aanwijzing tot uitgifte van aandelen • Authorization to issue shares Amsterdam, April 16, 2014 52
Slide 53: Agenda item 15
Agendapunt 15 / Agenda item 15 • Aanwijzing tot het beperken of uitsluiten van voorkeursrechten • Authorization to restrict or exclude pre-emptive rights Amsterdam, April 16, 2014 53
Slide 54: Agenda item 16
Agendapunt 16 / Agenda item 16 • Machtiging tot inkoop van eigen aandelen • Authorization to acquire shares Amsterdam, April 16, 2014 54
Slide 55: Agenda item 17
Agendapunt 17 / Agenda item 17 • Intrekking van gewone aandelen • Cancellation of common shares Amsterdam, April 16, 2014 55
Slide 56: Agenda item 18
Agendapunt 18 / Agenda item 18 • Sluiting • Closing Amsterdam, April 16, 2014 56
Slide 57: Questions
Questions 57
Slide 58: Thank you
Ahold Thank you Q~ @tos PEERS] votcom® albert NL stopeshop NS Giant GIANT MARTINS Peaped