Koninklijke Ahold Delhaize N.v. · EURONEXT:AD
Koninklijke Ahold Delhaize — Q4 2023 Earnings Presentation
36 slides from Koninklijke Ahold Delhaize's earnings presentation, Feb 16, 2024
Slide 1: Q4 & FY 2023 Ahold Delhaize Results
Q4 & FY 2023 Ahold Delhaize Results February 14, 2024
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 and expressions such as outlook, increased, grow(th)/(s), accelerat(ing)/(es), mainly, impact(ed), expectations, accelerate init
Slide 3: Welcome
Welcome JP O’Meara SVP Investor Relations Ahold Delhaize – Q4/FY 2023 Results 3
Slide 4: Ahold Delhaize reports Q4 2023 financial results
• Q4 Group net sales were €23.0 billion, up 1.9% at constant exchange rates and down 1.4% at actual exchange rates. Q4 comparable sales excluding gas increased by 1.8% for the Group, with a decline of 1.0% in the U.S. and an increase of 6.5% in Europe. • Net consumer online sales increased by 2.6% i
Slide 5: Business Highlights
Q4 & FY 2023 Business Highlights Frans Muller, President & CEO
Slide 6: Performance Review: Key Highlights
Performance Review: Key Highlights Key Financial Targets 2023 Most Recent Guidance Results in 2023 Group underlying operating margin ≥ 4.0% 4.1% Slightly below prior year Diluted underlying EPS growth at actual rates (0.4%) level Capital expenditures, net Around €2.4 billion €2.3 billion Free cash f
Slide 7: Industry-leading local omnichannel food retailer
402,000 Total stores associates 7,716 Optimized Industry-leading local own-brand products omnichannel food retailer 63M customers served weekly Dense networks Own-brand 1,558 penetration in U.S. loyalty Click & Collect the EU of ~50% customers with points in U.S. and U.S. of ~32% ~80% loyalty sales
Slide 8: Exceeded Save For Our Customers goal with €1,259 million for 2023
Exceeded Save For Our Customers goal with €1,259 million for 2023 Guidance of ≥€4 billion of additional savings from 2022-2025 Initial Save for Our Customers target • Save for Our Customers helps fund Additional Savings €1,259 growth investments, absorbs cost pressures, and improves our €979 €259 cu
Slide 9: Active participant in our local communities
Active participant in our local communities >€240m in charitable cash, product and food donations1 1. Total donation amount includes charitable, cash equivalent of product and food donations Ahold Delhaize – Q4/FY 2023 Results
Slide 10: Diligently staying the course to deliver short and long-term ambitions
Diligently staying the course to deliver short and long-term ambitions Elevating the shopping Simplifying go-to- experience market models to through vibrant, excel for our modern stores customers Growing high- quality, high-value own brand product assortment Ahold Delhaize – Q4/FY 2023 Results 10
Slide 11: Food Lion achieves 45th quarter of consecutive sales growth
Food Lion achieves 45th quarter of consecutive sales growth Highlights • Food Lion to Go expanded to 700 locations and reached the $1 billion online sales milestone • Started roll-out of PRISM ecommerce technology to first stores • In 2023, Food Lion Feeds donated 182 million meals and associates do
Slide 12: The GIANT Company accelerates store fleet remodel
The GIANT Company accelerates store fleet remodel Highlights • During 2023, remodelled more than 15% of store fleet and nearly 60% of fleet now has new ‘For Today’s Table’ design • GIANT Choice Rewards Ranked in Top 10 of dunnhumby Retailer Preference Index – Personalization Edition • Donated 13.5 m
Slide 13: Albert Heijn grows market share for 5th year in a row
Albert Heijn grows market share for 5th year in a row Highlights • Completed conversion of all 44 Jan Linders stores • More than 950,000 subscribers to AH Premium • 16 Own-Brand Products named ‘Best Product of the Year’ • Supporting ‘Voedselbanken Nederland’ (Foodbank Netherlands) for more than 10 y
Slide 14: Newly converted Delhaize Belgium stores see encouraging results
Newly converted Delhaize Belgium stores see encouraging results Highlights • 107 stores have now signed agreements with independent buyers and 44 stores have completed transition to affiliated stores • Launched Delhaize Delivery Professional as part of ambition to double sales to companies • Won a G
Slide 15: Elevating Health and Sustainability strategy remains a strategic focus
Elevating Health and Sustainability strategy remains a strategic focus ADUSA Ahold Delhaize Ahold Delhaize USA is a founding participant in the U.S. Food Waste Pact, a voluntary agreement between ReFED and the World Wildlife Fund, aiming to Albert Heijn Launched updated climate plan, reduce food was
Slide 16: Financial Highlights
Q4 & FY 2023 Financial Highlights Jolanda Poots-Bijl, CFO
Slide 17: Fourth Quarter results 2023
Comparable Fourth Quarter Net sales Sales Growth €23.0bn excl. gas +1.8% results 2023 vs LY constant rates +1.9% U.S. (1.0%) EU +6.5% Underlying Results Net Consumer Underlying Online Sales1 Underlying operating margin €3.3bn operating income 4.3% vs LY constant rates +2.6% €996m vs LY constant rate
Slide 18: Full year results 2023
Comparable Full year Net sales Sales Growth €88.6bn excl. gas +3.9% results 2023 vs LY constant rates +3.8% U.S. +2.3% EU +6.5% Underlying Results Net Consumer Underlying Online Sales1 Underlying operating margin €11.9bn operating income 4.1% vs LY constant rates +5.9% €3.6bn vs LY constant rates (0
Slide 19: Comparable sales growth trends by region
Actuals excluding gas Ex weather/calendar/other Comparable sales growth trends by region Ex. Gas Q4 Group Comparable Sales Growth excl. gas Europe U.S. Q4 Q4 +1.8% (1.0%) +6.5% 9.3% 8.8% 8.1% 7.7% 7.6% 7.0% 7.2% 6.2% 6.3% 6.5% 6.5% 6.1% 5.7% 5.6% 4.0% 3.6% 0.9% 1.0% -0.5% -1.0% Q4 2022 Q1 2023 Q2 20
Slide 20: USA: Q4 2023
USA: Q4 2023 PDL Leveraging data Comparable science, launched new sales growth ex gas substitution features Giant Food Net sales that offer customers €13.8bn (1.0%) increased choice and control of their pickups Engaged customers with vs LY holiday Flexible Rewards vs LY constant rates promotions – g
Slide 21: Europe: Q4 2023
Europe: Q4 2023 Albert Comparable 8 consecutive years sales growth ex gas of comparable Maxi Serbia Net sales 6.5% store sales growth €9.2bn €X bn vs LY Launched upgraded ‘Moj MAXI’ loyalty app with vs LY constant rates more functionality +7.5%% including personalized Mega Image +9.2 Alfa Beta promo
Slide 22: bol
Net sales €2.9 bn GMV vs LY excluding VAT1 +7.3% €5.8 bn bol vs LY +4.9% Underlying Full year EBITDA €151m results vs LY 2023 +21.5% Capital Expenditure €127m vs LY (25.3%) 1. Gross merchandise value (“GMV”) is the total gross value of goods sold through bol’s online platform (either Retailer I or N
Slide 23: UOM trends by region
UOM trends by region Group Q4 4.3% 5.2% 4.8% 4.7% 4.6% 3.7% 4.2% 3.5% 3.3% 3.2% 2.8% Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Ahold Delhaize – Q4/FY 2023 Results 23
Slide 24: Fourth Quarter results 2023 (IFRS-reported)
Online Sales Fourth Quarter Net sales €2.5bn €23.0bn vs LY actual rates results 2023 vs LY actual rates (1.4%) +1.2% IFRS-Reported Results • €250m loss on divestment of Operating FreshDirect Operating income margin • €60m restructuring €675m 2.9% costs for Accelerate initiatives vs LY actual rates v
Slide 25: Full year results 2023 (IFRS-reported)
Online Sales Full year Net sales €9.0bn €88.7bn vs LY actual rates results 2023 vs LY actual rates +1.9% +4.6% IFRS-Reported Results • €266m in impairment charges for Belgium and Operating FreshDirect Operating income margin 3.2% • €250m loss on divestment €2.8bn of FreshDirect vs LY actual rates vs
Slide 26: Impact of FreshDirect Divestment on Results
Impact of FreshDirect Divestment on Results Cash Flow Operating Income • Loss on divestment is a non- cash adjustment to operating cash flows • Impact from divestment recorded as non-recurring items • Cash portion of loss on divestment is €130 million – • YTD impact of €415 million part of Investing
Slide 27: Q4 Free Cash Flow Bridge
Q4 Free Cash Flow Bridge FCF Q4 2023 vs Last Year (in €m) Timing related to the netting process during transition to SAP between Q3 & Q4 2022 Ahold Delhaize – Q4/FY 2023 Results 27
Slide 28: Full Year Free Cash Flow Bridge
Full Year Free Cash Flow Bridge FCF FY2023 vs Last Year (in €m) Includes Belgium tax receivable of Negatively €377m impacted by Accelerate costs Ahold Delhaize – Q4/FY 2023 Results 28
Slide 29: Full Year Debt Bridge
Full Year Debt Bridge FY2023 vs Last Year (in €m) Ahold Delhaize – Q4/FY 2023 Results 29
Slide 30: Dividend to increase 4.8% to €1.10
Dividend 7% CAGR to increase € 1.05 €€1.10 1.11 4.8% to € 0.95 € 0.90 €1.10 +18.4% +5.6% +10.5% +4.8% Reflecting our ambition of sustainable dividend growth 2020 2021 2022 2023 Ahold Delhaize – Q4/FY 2023 Results 30
Slide 31: Healthy & Sustainable
Healthy & Sustainable Reducing GHG 37% emissions Reduction in food Elevating healthy waste2 Reducing Food Waste 54.8% of healthy own-brand sales Reducing plastic 35% product packaging 10% Reduction in absolute GHG emissions1 Scope 1 + 2 Reduction virgin plastic packaging 3 1. % reduction is based on
Slide 32: 2024 outlook
around 2023 around levels €2.2 Underlying ≥4.0% diluted EPS billion Net Capital Underlying Expenditures Operating Margin around €2.3 €1 billion billion Share Buyback2 Free Cash Flow ≥€1 40-50% payout; billion YOY growth in dividend per share Save for Our Customers Dividend payout ratio 1,2 1. Calcul
Slide 33: Priorities to kick off new phase of momentum
Priorities to kick off new phase of momentum Organization Drive price, value simplification to and assortment sustain growth to support our investments customers Leveraging strength of our great local brands, including a holistic reset of S&S Advance own- Laser focused brand strategies, on cost cont
Slide 34: Ahold Delhaize proud companies
Ahold % Delhaize FOODAALION © $sToPasHoP. Gant Giant Qe Company Sos soe bins Aeneid DOL, SEND. Beceteutes fenacee (BA) of [ii Bau & Ahold Delhaize Proud companies of
Slide 35: Corporate Calendar 2024
Corporate Calendar 2024 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Jan - March April - June July - Sept Oct - Dec February 14 April 10 August 7 November 6 Q4 & FY 2023 Results Annual Shareholder Meeting Q2 2024 Results Q3 2024 results April 25 End of August February 28 Final dividend 2023 Interim dividend 2024
Slide 36: Thank you
Ahold % Delhaize Thank you FOODAALION © $sToPasHoP. Gant = S& Giant Qe Company £03 GalkGall_ Peaped Sewn, yy Co — _ @vwer albert bol. BLEED Bi Pastenotes ‘LENA £002 Le of [susiNess QB cua & Ahold Delhaize Proud companies of
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