Koninklijke Ahold Delhaize N.v. · EURONEXT:AD
Koninklijke Ahold Delhaize — Q3 2020 Earnings Presentation
20 slides from Koninklijke Ahold Delhaize's earnings presentation, Nov 4, 2020
Slide 1: Q3 2020 Ahold Delhaize Results
Q3 2020 Ahold Delhaize Results November 4, 2020
Slide 2: 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 constant, outlook, to start, 2021(+), solidifying position, 2021 and beyond, increase, 2023, will, by, test, plans to, g
Slide 3: Highlights
Highlights Frans Muller, President & CEO
Slide 4: Strong results in Q3, largely driven by COVID-19
Strong results in Q3, largely driven by COVID-19 Net sales were €17.8 billion, up 6.8%; up 10.1% at constant exchange rates U.S. and Europe comp sales growth excluding gas in Q3 was up 12.4% and 7.5%, respectively Net consumer online sales grew 62.6% in Q3 at constant exchange rates COVID-19 related
Slide 5: Solidifying position as industry-leading local omnichannel retailer in 2021+
Solidifying position as industry-leading local omnichannel retailer in 2021+ November 4, 2020
Slide 6: Initiatives to solidify our position as industry-leading local omnichannel retailer
Initiatives to solidify our position as industry-leading local omnichannel retailer in 2021 and beyond 1 2 3 Step-up online capacity, supply Advance chain and omnichannel ESG Action items technological offerings capabilities 6
Slide 7: Significantly step-up online capacity, supply chain & technological capabilities
1 Significantly step-up online capacity, supply chain & technological capabilities 2020 & 2021 2020 & 2021 2020 U.S. market US online EU online capacity household capacity increase of ~50% coverage ~90%; increase of (incl. over 50% at same-day ~100% bol.com) coverage ~70% 2021 2021 2020 & 2021 Self-
Slide 8: Advancements in omnichannel offerings to consumers in the U.S.
2 Advancements in omnichannel offerings to consumers in the U.S. Q1 2021 H1 2021 U.S. will offer an ‘endless aisle’ The GIANT Company to with an additional 80,000 – test a new subscription 100,000 general merchandise model with < $100 and food items, utilizing the annual membership fee Mirakl platfo
Slide 9: Advancements in omnichannel offerings to consumers in Europe
2 Advancements in omnichannel offerings to consumers in Europe July 2020 August 2020 September 2020 Albert Heijn Bol.com expanded to Mega Image launched a home French-speaking Belgium launched a 90 delivery service in in Brussels & Wallonia; min. home the Antwerp region reaches new customers deliver
Slide 10: The call to action in ESG
the call to ESG Action Items 3 action in ESG Climate % Reduction Human in CO2 Diversity & Rights Plastic Waste Inclusion % Plastic Committed to Healthy science-based sales targets for Strive for Embraced clear Food waste Aim of zero -50% 100% % Food shrink standards on Goal to have human rights; 51%
Slide 11: ESG Action Items Recent Initiatives
ESG Action Items Recent Initiatives Albert Heijn doubled its own- 1 brand assortment of vegetarian, vegan and vegetable products in the fall ADUSA commitments: 2 • By June 2025, at least 54% of own-brand food sales will achieve 1 to 3 stars through the Guiding Stars nutrition guidance 3 • Starting t
Slide 12: Highlights: United States
Highlights: United States ~115% online sales growth in Q3; raising full year target to over 90%+ US sales growth in 2020 (from 75%+ previously). 883 click & collect points at the end of Q3 (up from 765 in Q2); target of 1,100+ in 2020 Completed 11 Stop & Shop remodels in Q3 and expect a total of 31
Slide 13: Highlights: Europe
Highlights: Europe Continued strength in the Benelux ecosystem, with Q3 market share gains in both The Netherlands and Belgium; CSE maintained 1 share 48.6% net consumer online sales growth in Q3 Bol.com net consumer online sales growth of ~46% in Q3 and 2 added roughly 3,000 Bol.com merchant partne
Slide 14: Financial Performance
Financial Performance Natalie Knight, CFO
Slide 15: Strong growth continued in Q3, largely driven by COVID-19
Strong growth continued in Q3, largely driven by COVID-19 Comparable Sales Net Consumer Operating Net sales Growth excl. gas Online Sales income € 17.826 10.5% € 1.780 € 207 in million in million in million U.S. 12.4% vs LY constant rates 10.1% E.U. 7.5% vs LY constant rates 62.6% vs LY constant rat
Slide 16: High sales growth in both regions, though Europe margins hurt by pension expense
High sales growth in both regions, though Europe margins hurt by pension expense and lap of 1x benefits in The Netherlands Ahold Delhaize The United States Europe Net consumer online sales Group grew nearly 115% in the U.S. Q3 % change Q3 % change Q3 % change and 50% in Europe constant constant cons
Slide 17: Q3 Free Cash Flow Bridge
Q3 Free Cash Flow Bridge FCF Q3 2020 vs Last Year (in €m) Change in Inventory 113 98 484 36 Change in other WC 145 78 5 59 176 FCF Q3 2019 Operating Changes in Income Tax Paid Net Investment Net Interest Net Lease FCF Q3 2020 Cash Flow Working Capital Repayment 17
Slide 18: Raising underlying EPS 2020 again due to strong YTD performance
Raising underlying EPS 2020 again due to strong YTD performance We are increasing underlying EPS guidance to high 20% (previously low-to-mid-20%) due to our strong YTD performance Free Cash Flow outlook unchanged at over €1.7 billion, net of Q4 payment for U.S. pension withdrawal The underlying oper
Slide 19: Wrap-up
Wrap-up A strong Q3 performance despite significant costs incurred related to COVID-19 High growth in net consumer online sales, driven by ~115% growth in the U.S. and ~50% in Europe 2 Raising underlying EPS growth to high 20% due to strong YTD performance Reiterating free cash flow guidance of at l
Slide 20: Thank you
Ahold % Delhaize Thank you eu Peapod Qezsziee FOODAALION sTopesHor ‘Gs? GIANT MARTIN'S ¥ Giant Qe (Ba) Eos atest albert ‘do vankal van one allemaal bolcom” = BIN eF Tempo AY Pemtinewtes TENA? eB Ahold Proud compenses of " Delhaize
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