Frans Muller President and CEO of Delhaize Group 1 Pierre-Olivier - - PowerPoint PPT Presentation

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Frans Muller President and CEO of Delhaize Group

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• Didier Smits
• Pierre-Olivier Beckers

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New Directors

• Patrick De Maeseneire
• Dominique Leroy

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Delhaize America CEO

• Kevin Holt

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Thanks to our colleagues around the Group

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Serving more than 20 million customers every week

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Our new Strategic Framework

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Principles help us make decisions

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Promises we make to our stakeholders

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Our Values remain consistent

Humor helps to put things in perspective and enables us to appreciate both our successes and our setbacks. Humor keeps us from taking

• urselves too seriously. Humor makes work enjoyable while sparking

creativity and innovation. Humor makes us different. The humble person is inspired to teach, to learn from others, and to be alert to external developments. We always look for ways to serve

• thers and respect the role each of us plays in delivering on our

commitments. Courage is required to take the road less traveled. We dare to challenge ourselves, each other, and our competitors. We are commercially aggressive. We are authentic. We are honest with ourselves and with others. We are fair and principled towards our colleagues, our suppliers, our customers, and our communities. We stick to our word. We do things the right way, every day. We commit to perform, even if barriers stand in our way and we know we can count on each other to achieve our goals together. We’re accountable and we deliver.

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2014 Sustainability Report

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Our 2015 priorities

• Put the customer back

at the center

• Focus on core markets
• Realize more operating

efficiencies

• Act decisively and with

speed

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Revenues Q1

(€ in Millions)

5,820 166 3.3% 173 3.0% 80 28 (64.9%) (79.8%) 46 (107) N/A N/A

% Growth Underlying Operating Profit / Margin Operating Free Cash Flow 2014 2015 Actual Rates Identical Rates

5,025 15.8% 2.2% 4.4% (33 bps) (11.2%) (43 bps)

Group share in Net Profit

305 339 11.2% (3.5%)

Underlying EBITDA

Financial results – Q1 2015

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Q1 2015 highlights by region – U.S.

• 2.5% comparable store sales growth driven by both Food Lion

and Hannaford despite a meaningful reduction in inflation

• 10th consecutive quarter of positive real growth at Food Lion
• 76 Easy, Fresh & Affordable stores performing as expected
• On track to roll out additional 160 Easy, Fresh & Affordable

stores this year in Raleigh, North Carolina

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Q1 2015 highlights by region – Belgium

• Comparable store sales decreased

by 2.8%

• Market share declined by 87 bps

although trend gradually improving

• On track with execution of

Transformation Plan

• Revenue growth and profitability

expected to improve in H2

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Q1 2015 highlights by region – SEE(1) and Indonesia

• Comparable store sales

decreased by 0.8%

• However, both CSS and real

growth have improved for all SEE countries

• All SEE countries continued to

gain market share

• Posted positive CSS growth, in

Serbia supported by 21 successful fully remodelled Maxi stores

• In Indonesia we delivered

strong comparable store sales growth

(1) SEE is Greece, Serbia, and Romania

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2015 outlook

• Two important strategic initiatives underway
• Food Lion « Easy, Fresh and Affordable » strategy
• Transformation Plan in Belgium
• U.S.
• Focused on maintaining sales momentum and profitability at

both Food Lion and Hannaford

• Belgium
• Expect positive market share and CSS evolution in H2 in

Belgium, with gradual improvement in profitability

• SEE
• Greece and Romania continue expansion, sales

improvement in Serbia coupled with good profitability level

• Healthy Free Cash Flow generation
• Cash capex of approximately €700 million(1)

(1) At identical exchange rates (€1 = $1.3285)

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