Koninklijke Ahold Delhaize N.v. · EURONEXT:AD
Koninklijke Ahold Delhaize — Q4 2018 Earnings Presentation
25 slides from Koninklijke Ahold Delhaize's earnings presentation, Feb 27, 2019
Slide 1: Q4/Full year 2018
Q4/Full year 2018 February 27, 2019
Slide 2: Highlights
Highlights Frans Muller President & CEO
Slide 3: A strong quarter with full year underlying EPS up 29.6%
A strong quarter with full year underlying EPS up 29.6% Fourth quarter results: • Net sales of €16.5 billion, up 3.0% at constant exchange rates • Net consumer online sales up 25.0% at constant exchange rates • Operating income of €627 million, up 9.1% at constant exchange rates • Underlying operati
Slide 4: Financial Results
Financial Results Jeff Carr CFO 4
Slide 5: Group performance
Group performance € in million Quarter 4 Full year 2018 2017 Change Change 2018 2017 Change Change actual rates constant rates actual rates constant rates Net sales 16,547 15,763 5.0% 3.0% 62,791 62,890 (0.2)% 2.5% Underlying EBITDA 1,129 1,081 4.5% 2.4% 4,305 4,249 1.4% 4.1% Underlying EBITDA margi
Slide 6: Group performance
Group performance € in million Full year 2018 2017 Change Change actual rates constant rates Underlying operating income 2,554 2,456 4.0% 6.7% Restructuring and related charges (108) (214) Other (51) (17) Operating income 2,395 2,225 7.7% 10.5% Net financial expenses (246) (297) Income taxes (372) (
Slide 7: United States Q4 2018
United States Q4 2018 Strong financial performance across all brands Comparable sales growth¹ Underlying operating margin 4.1% 4.3% 4.1% 4.3% 4.0% 2.8% 3.0% 2.7% 1.0% Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 -0.1% 1Comparable sales growth excl. gas • Net sales up 2.6% at constant
Slide 8: The Netherlands Q4 2018
The Netherlands Q4 2018 Solid quarter with full year positive EBITDA margins for bol.com Comparable sales growth Underlying operating margin 6.0% 5.9% 5.3% 5.1% 4.7% 4.9% 4.9% 3.2% 3.3% 2.9% Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 • Net sales of €3,805 million increased by 3.6% c
Slide 9: Belgium Q4 2018
Belgium Q4 2018 New strategy for Delhaize gaining traction Comparable sales growth Underlying operating margin 4.1% 3.0% 3.2% 2.7% 2.9% 2.3% 1.4% 1.0% 0.6% 0.0% Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 • Net sales were €1,338 million, up 3.6% versus the same quarter last year • Co
Slide 10: Central and Southeastern Europe Q4 2018
Central and Southeastern Europe Q4 2018 Expansion of store network in Romania and Greece, continued strong performance in Czech Republic Comparable sales growth¹ Underlying operating margin 5.4% 5.3% 3.6% 3.7% 3.0% 2.0% 0.7% 0.5% 0.6% 0.3% Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18
Slide 11: Synergies delivered ahead of plan
Synergies delivered ahead of plan €432 million delivered in 2018 Timeline 2016 – 2019 € in million Quarter 4 Full year € in million 500* 2018 2017 2018 2017 432 United States 81 51 291 159 268 Europe 28 25 102 78 Global support 11 7 40 31 22 office Total 120 83 432 268 2016 2017 2018 2019 * Guidance
Slide 12: Free cash flow
Free cash flow Strong free cash flow, supported by further improvements in working capital € in million Quarter 4 Full year 2018 2017 2018 2017 Operating cash flow 1,104 1,043 4,124 4,049 Change in working capital 498 522 484 131 Income tax paid – net (148) (152) (280) (480) Cash from cont. operatio
Slide 13: Ahold Delhaize delivers a consistent strong performance
Ahold Delhaize delivers a consistent strong performance Net sales growth1 Underlying operating margin 4.1% 2.5% 3.9%* 2.1%* 1.7%* 3.7%* 2016 2017 2018 2016 2017 2018 1At constant exchange rates *2016 & 2017 on a pro forma basis *2016 & 2017 on a pro forma basis Free cash flow & Capex spend Underlyin
Slide 14: Reporting changes 2019: Implementation of IFRS 16
Reporting changes 2019 Implementation of IFRS 16 • Implementation of new accounting standard IFRS 16, adopting full retrospective approach • We refer to Note 3 of Ahold Delhaize’s 2018 Annual Report consolidated financial statements for an explanation of the impact of this new accounting standard •
Slide 15: Outlook 2019
Outlook 2019* Strong foundation and confidence in the future • We confirm our target for 2019 of realizing €750 million gross synergies, resulting in €500 million net synergies from the integration of the two companies • We expect to save €540 million in 2019 as part of our €1.8 billion Save for Our
Slide 16: Business Highlights
Business Highlights Frans Muller President & CEO 16
Slide 17: From Better Together to Leading Together strategy
Introduction From our successful To our ambitious Better Together strategy Leading Together strategy • Strong business performance during the • Omnichannel growth including merger integration eCommerce and meal solutions • Consistent delivery on merger synergies • Technology including AI and Robotic
Slide 18: Highlights United States
Highlights United States • Roll-out Click & Collect points on track, with Food Lion To-Go service available at 53 Food Lion stores • Peapod opened its fifth wareroom on Long Island, increasing order delivery capacity by 10% in the New York region • Stop & Shop launched first micro fulfillment center
Slide 19: Highlights the Netherlands
Highlights the Netherlands • Albert Heijn most sustainable Dutch food retailer in the Netherlands for second consecutive year • Albert Heijn and bol.com accessible via Google Home, customers can now receive voice-activated shopping advice • Albert Heijn broadens omni-channel offering: – AH to go and
Slide 20: Highlights Belgium
Highlights Belgium • Further improvement of omnichannel offering and accelerating growth: – Delhaize will open ~100 new supermarkets in the next 3 to 4 years – Albert Heijn will open 30-50 new supermarkets in Flanders in the next few years – Bol.com started a collaboration with Delhaize, adding inst
Slide 21: Highlights Central and Southeastern Europe
Highlights Central and Southeastern Europe • Albert hypermarket at Chodov awarded Best Store in Czech republic, recognized for freshness and quality and for various innovations • Alfa Beta launched first “Green Truck” with CNG as combustible and recycled CO2 for cooling, less polluting and more sile
Slide 22: Wrap-up: Ahold Delhaize well positioned to continue to win
Wrap-up Ahold Delhaize well positioned to continue to win • Very robust financial profile and right structure to further grow our brands, both in-store and online • Completion of merger integration process and synergies delivered as promised • Full year free cash flow €2.3 billion, up 24.0% at const
Slide 23: 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 strategy, guidance, to be, outlook, future, target, expect, well-positioned to continue to win, will, on track, planning
Slide 24: S& Ahold
S& Ahold G2 Delhaize QdA FOODAALION — $sTopasHoP. See cuavsr\sannts Giant Peaped Gym [Ha] Eto GalleGall bolcom® alert (BMIND Tempo A Beatonovtes-ENA000 be _ , @ Ahold ee @ BoP
Slide 25: Thank you
ZS) Ahold YX Delhaize Thank you FOODFALION © $storesHop «= Spe’? lar liars © Giant — Peaped = yen §— |i] Ets GalleGall pokcom® albert HITS). «7 Tempo SJ Bamitoneutes © ENAFO00 be _ , @ Ahold ee @ BoP
Koninklijke Ahold Delhaize — Q4 2018 Earnings Presentation on 6ix