Koninklijke Ahold Delhaize N.v. · EURONEXT:AD
Koninklijke Ahold Delhaize — Q1 2018 Earnings Presentation
20 slides from Koninklijke Ahold Delhaize's earnings presentation, May 9, 2018
Slide 1: First Quarter 2018 Results
First Quarter 2018 Results May 9, 2018
Slide 2: Q1 Highlights
Q1 Highlights Dick Boer President and CEO
Slide 3: Highlights Q1 2018
Highlights Q1 2018 Another strong quarter with operating income up 10.5%* • Net sales of €14.9 billion, up 2.5% at constant exchange rates • Net consumer online sales up 23.2% at constant exchange rates • Underlying operating margin up 20 bps to 4.0%, underlying operating income at €600 million • Ne
Slide 4: Financial Results
Financial Results Jeff Carr CFO
Slide 5: Group performance
Group performance € in million Quarter 1 2018 2017 Change Change actual rates constant rates Net sales 14,933 15,870 (5.9)% 2.5% Net sales excl remedy stores 3.1% Underlying EBITDA 1,037 1,061 (2.3)% 7.1% Underlying EBITDA margin 6.9% 6.7% Underlying operating income 600 606 (1.0)% 8.5% Underlying o
Slide 6: United States: Improved comparable sales; margins boosted by synergies
United States Improved comparable sales; margins boosted by synergies Net sales Comparable sales growth ² Underlying operating margin € in million 4,0% 3,9% 4,1% 4,3% 3,9% 232 16 2,8% -70 9.989 -1,328 8.839 1,3% 1,0% 8.661 0,7% -1,1% Q1'17 FX Q1'17 Comp New/ Gas Q1'18 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q
Slide 7: The Netherlands: Strong consumer online growth continues
The Netherlands Strong consumer online growth continues at 28.3% Net sales Comparable sales growth Underlying operating margin € in million 6,0% 104 4,8% 5,0% 5,1% 4,9% 4,7% 4,9% -15 3,6% 3,3% 3,2% 3.320 3.408 Q1'17 Comp New/ Q1'18 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 sales cl
Slide 8: Belgium: Encouraging signs following commercial improvements
Belgium Encouraging signs following commercial improvements Net sales Comparable sales growth Underlying operating margin € in million 45 14 4,1% 3,0% 2,4% 2,6% 2,3% 1.245 1.186 1,0% 0,0% 0,0% Q1'17 Comp New/ Q1'18 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 sales closed -0,7% -0,3%
Slide 9: Central and Southeastern Europe: Continued strong sales growth
Central and Southeastern Europe Continued strong sales growth in Romania, Serbia & Czech Republic Net sales Comparable sales growth ¹ Underlying operating margin € in million 5,4% 29 9 32 4,3% -5 3,8% 3,0% 3,0% 1.375 1.404 1.441 1,5% 1,7% 0,5% 0,7% 0,3% Q1'17 FX Q1'17 Comp New/ Gas Q1'18 Q1'17 Q2'17
Slide 10: Free Cash Flow: Further improvements in working capital
Free Cash Flow Further improvements in working capital € in million Quarter 1 2018 2017 Operating cash flow 1,007 1,001 Change in working capital (203) (346) Income tax paid – net (34) (28) Cash from cont. operations 770 627 Investments (303) (431) Divestments 13 50 Net interest paid (39) (51) Divid
Slide 11: Synergies and One-time costs
Synergies and One-time costs On track to meet targets and guidance for 2018 € in million Quarter 1 2018 2017 Incremental United States 66 35 31 Europe 25 15 10 Global Support Office 9 6 3 Ahold Delhaize Group Synergies 100 56 44 € in million Costs to Expected Q1 date full costs Integration costs 18
Slide 12: Business Highlights
Business Highlights Dick Boer President and CEO
Slide 13: United States: Improved local brands performance
United States Improved local brands performance Guiding stars offered at all US brands – industry-leading nutrition navigation program helping customers eat healthier and save time on grocery shopping Stop&Shop – Successful testing improved store format elements Food Lion – Easy, Fresh & Affordable
Slide 14: The Netherlands: Innovation and customer appreciation continues
The Netherlands Innovation and customer appreciation continues Artificial Intelligence Retail Lab - First company to launch an industry research lab in Amsterdam, using AI to optimize supply chain and product availability Albert Heijn • Now has >800 Goedkoopje (“Best Buy”) SKUs in its assortment • S
Slide 15: Belgium: Exciting new commercial plan launched
Belgium Exciting new commercial plan launched • Reinforced commercial positioning with focus on health, convenience and taste • Successful commercial campaigns launched with focus on healthy eating, interesting deals and attracting new customers • Investing in supply chain processes, improved produc
Slide 16: CSE: Successful growth in Central and Southeastern Europe
CSE Successful growth in Central and Southeastern Europe Greece - Personalized offers to AB Plus cardholders increasing redemption to 30% with biweekly 50k cardholders targeted Czech Republic - Successfully upgraded 23 supermarkets and further improvements in performance of compact hypermarkets Roma
Slide 17: Stichting Continuïteit Ahold Delhaize
Stichting Continuïteit Ahold Delhaize Option agreement extended, adopting additional commitments • Current option agreement expires December 2018 • Extension is at the discretion of the Management Board with the approval of the Supervisory Board • Feedback from shareholders resulted in two commitmen
Slide 18: Wrap up & Outlook 2018
Wrap up & Outlook 2018 Another strong quarter with operating income up 10.5%* • Solid sales growth of 3.1% adjusted for remedy stores • Increased margins of 20 bps to € 600 million of underlying operating income • Net synergy target of €420 million in 2018, including €268 million realized in 2017 •
Slide 19: 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 on track, target, guidance, 2018, continues to drive, planned, acquiring, strengthen, driving, to launch, focus, investi
Slide 20: Thank you
S& Ahold XxX Delhaize Thank you FoonaaLion — SY stopsshop giant wants Giant Peaped QQ (RB) &s & DELHAIZE a a EY Bao’ FOOD ee Fal GallGall Bbokcom® albert = HEIN =F Tempo = Bamviintes «TENA F208 Ne 2S Ahold Delhaize Proud companies of
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