Slides
Page 1
results Q3 2026 November 4, 2026
Page 2
cautionary notice Ahold Delhaize – Q3 20262 This communication includes forward-looking statements. All statements other than statements of historical facts may be forward-looking statements. Forward-looking statements can be identified by certain words, such as “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods. Forward-looking, including statements about the potential benefits of the proposed acquisition and the anticipated timing of the closing of the proposed acquisition, statements are subject to risks, uncertainties and other factors that are difficult to predict and that may cause the actual results of Koninklijke Ahold Delhaize N.V. (the “Company”) to differ materially from future results expressed or implied by such forward-looking statements. Therefore, you should not place undue reliance on any of these forward-looking statements. Factors that might cause or contribute to such a material difference include, but are not limited to, risks relating to the Company’s inability to successfully implement its strategy, manage the growth of its business or realize the anticipated benefits of acquisitions; risks relating to competition and pressure on profit margins in the food retail industry; the impact of economic conditions, including high levels of inflation, on consumer spending; changes in consumer expectations and preferences; turbulence in the global capital markets; political developments, natural disasters and pandemics; wars and geopolitical conflicts; climate change; energy supply issues; raw material scarcity and human rights developments in the supply chain; disruption of operations and other factors negatively affecting the Company’s suppliers; the unsuccessful operation of the Company’s franchised and affiliated stores; changes in supplier terms and the inability to pass on cost increases to prices; risks related to environmental, social and governance matters (including performance) and sustainable retailing; risks related to data management and data privacy; food safety issues resulting in product liability claims and adverse publicity; environmental liabilities associated with the properties that the Company owns or leases; competitive labor markets, changes in labor conditions and labor disruptions; increases in costs associated with the Company’s defined benefit pension plans; ransomware and other cybersecurity issues relating to the failure or breach of security of IT systems; disruption from developments in artificial intelligence or inability to realize related benefits; the impact of adverse publicity or operational disruption related to activism or negative media coverage; the Company’s inability to successfully complete divestitures and the effect of contingent liabilities arising from completed divestitures; antitrust and similar legislation; unexpected outcomes in the Company’s legal proceedings; additional expenses or capital expenditures associated with compliance with federal, regional, state and local laws and regulations; unexpected outcomes with respect to tax audits; the impact of the Company’s outstanding financial debt; the Company’s ability to generate positive cash flows; fluctuation in interest rates; the change in reference interest rate; the impact of downgrades of the Company’s credit ratings and the associated increase in the Company’s cost of borrowing; exchange rate fluctuations; inherent limitations in the Company’s control systems; changes in accounting standards; inability to obtain effective levels of insurance coverage; adverse results arising from the Company’s claims against its self-insurance program; the Company’s inability to locate appropriate real estate or enter into real estate leases on commercially acceptable terms; and other factors discussed in the Company’s public filings and other disclosures. Forward-looking statements reflect the current views of the Company’s management and assumptions based on information currently available to the Company’s management. Forward-looking statements speak only as of the date they are made, and the Company does not assume any obligation to update such statements, except as required by law.
Page 3
welcome Q3 2026 Ahold Delhaize – Q3 20263 New picture needed
Page 4
speakers Frans Muller President & Chief Executive Officer JP O’Meara SVP Investor Relations Jolanda Poots-Bijl Chief Financial Officer 4 Ahold Delhaize – Q3 2026
Page 5
• Through our family of great local brands, we remain closely connected to the needs of customers and communities. Disciplined investments in value, quality and convenience are strengthening our competitive positions and enabling us to continue to gain market share. This balanced approach supports sustainable, long-term growth and positions us to deliver on our Growing Together strategic ambitions. • Q3 net sales were €23.1 billion, up 1.9% at constant exchange rates and up 2.6% at actual exchange rates. • Q3 comparable sales excluding gasoline increased 0.5% in the U.S. Several market-specific factors, including reduced SNAP benefits, the cyclospora outbreak and egg price deflation, alongside pharmacy pricing changes related to the Inflation Reduction Act, reduced our growth rate by approximately 2.1 percentage points. This was partially offset by 0.2 percentage points due to wea ther. • Q3 comparable sales excluding gasoline increased 2.1% in Europe. Accelerating volumes amid deflation in most of our European markets highlight the appeal of our brands’ value propositions and convenient shopping solutions. • Ahold Delhaize's online sales increased 8.2% in Q3 at constant exchange rates and 9.0% at actual exchange rates. This was dri ven by strong growth of 14.2% at constant exchange rates in the U.S., where customers continue to appreciate the convenience, assort ments and personalization offered by our brands' online shopping experiences, supported by our strong omnichannel model. • Q3 underlying operating margin was 4.1%, a decrease of 0.1 percentage points at constant exchange rates. A favorable discount ing effect on insurance provisions at Ahold Delhaize Group, driven by interest rate developments, was offset by a modest decline in the U.S., in part from cycling prior-year non-recurring items. • Q3 diluted underlying earnings per share (EPS) was €0.69, an increase of 1.4% compared to the prior year at constant exchange rates. • Q3 IFRS operating income was €976 million and IFRS-diluted EPS from continuing operations was €0.72. IFRS results were €30 million higher than underlying results, primarily due to a pension settlement in the U.S. • Q3 free cash flow was €445 million, driven by improvements in working capital, partially offset by higher purchases of non -current assets and new supplier payment regulations in Serbia. • In October, a cybersecurity incident affected our business and, based on current estimations, is expected to reduce Q4 net sales by between €200 million and €250 million and underlying and IFRS operating income by between €75 million and €100 million. In addition, we expect incremental response and remediation costs to have a marginal impact on 2026 IFRS operating income. • For 2026, the Company now expects (on a 53-week basis): underlying operating margin approaching 4.0% (previously around 4.0%); low-single-digit diluted underlying EPS growth at constant exchange rates (previously mid- to high-single-digit); and free cash flow of around €2.1 billion (previously at least €2.3 billion). • Ahold Delhaize announces a €1 billion share buyback program to start at the beginning of 2027 and we aim to grow our dividend per share for 2026 at a mid-single-digit rate this year, based on this outlook5 Ahold Delhaize reports resilient Q3 2026 results and updates 2026 guidance to reflect business disruption caused by recent cybersecurity incident Ahold Delhaize – Q3 2026
Page 6
quarterly performance Q3 2026 Ahold Delhaize – Q3 20266 Frans Muller New picture needed
Page 7
update on the cyber security incident Ahold Delhaize – Q3 20267
Page 8
expanding our market positions enhancing our customer value propositions driving omnichannel growth Ahold Delhaize – Q3 20268 leveraging our own brand offering
Page 9
offering value through affordability, quality, convenience and choice Ahold Delhaize – Q3 2026 9
Page 10
leveraging our strong own brand proposition to drive loyalty and support healthier choices +50bps YTD own brand food sales penetration Ahold Delhaize – Q3 2026 10
Page 11
innovating for growth through our omnichannel offering Ahold Delhaize – Q3 202611
Page 12
strengthening our store networks and market positions Ahold Delhaize – Q3 202612
Page 13
13 Ahold Delhaize – Q3 2026 298 total stores 182 total stores Prague Ostrava Žilina Plzeň Brno Banská Bratislava Acquiring 100% of the Czechia and Slovakia business from Tesco Enterprise value of ~€1.7 billion1 (EV/LTM EBITDA of ~7.2x, or ~5.0x incl synergies)1 Generating significant revenue growth and synergies Closing is expected in Q4 2027 and subject to regulatory clearances reinforcing our leading position in Czechia and establishing ourselves as a significant player in Slovakia 1. Post-IFRS 16
Page 14
help customers enjoy the moments that matter 14 Ahold Delhaize – Q3 2026
Page 15
financial highlights Q3 2026 Ahold Delhaize – Q3 202615 Jolanda Poots-Bijl
Page 16
latest estimate on Q4 impact Ahold Delhaize – Q3 2026 16 financial impact of cybersecurity incident €200-250M net sales impact €75-100M UOP impact marginal impact on 2026 IFRS operating income due to response and remediation costs 16
Page 17
third quarter results 2026 underlying results underlying income from continuing operations1 €603m vs LY constant rates (1.9%) online sales €2.6bn vs LY constant rates +8.2% net sales €23.1bn vs LY constant rates +1.9% underlying operating margin1 4.1% vs LY constant rates (0.1) pts diluted underlying EPS1 €0.69 vs LY constant rates +1.4% comparable sales growth excl. gas +1.2% U.S. +0.5% EU +2.1% €946m vs LY constant rates +0.4% underlying operating income1 1. Adjusted for impairments of non-current assets, gains and losses on the sale of assets and leases/subleases, restructuring and related charges and other items considered not to be directly related to the underlying operating performance Ahold Delhaize – Q3 202617
Page 18
third quarter results 2026 IFRS-reported results income from continuing operations €625m vs LY actual rates +7.0% online sales €2.7bn vs LY actual rates +7.3% net sales €23.1bn vs LY actual rates +0.3% €976m vs LY actual rates +8.1% operating income diluted EPS from continuing operations €0.72 vs LY actual rates +10.6% Ahold Delhaize – Q3 202618 operating margin 4.2% vs LY actual rates +0.2 pts €30m higher than underlying results, largely due to: • A pension settlement gain in the U.S.
Page 19
2.8% 2.4% 2.6% 1.7% 2.1% 3.4% 2.9% 2.7% 1.8% 2.0% Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 2.9% 2.7% 1.5% 0.8% 0.5% 3.1% 2.9% 1.8% 1.6% 1.0% Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 comparable sales growth trends by region Ex. Gas U.S. Q2 +0.5% Europe Q2 +2.1% Q3 group comparable sales growth excl. gas +1.2% Ahold Delhaize – Q3 202619 Actuals excluding gas Ex weather/calendar/other1 1. Includes the impact from pharmacy prices related to the Inflation Reduction Act in the U.S. and the cessation of tobacco sales in the Netherlands and Belgium
Page 20
US Q3 2026 highlights 1. At constant rates gaining volume and market share by offering the best quality & value ADUSA gaining market share across 4 out of 5 brands Food Lion 56th consecutive quarter of positive comparable sales growth and 21% online growth remodels launching the Greensboro market remodels at Food Lion and on track to deliver >40 remodels at Stop & Shop online marking the 10th consecutive quarter of double-digit growth own brandnet sales €13.3bn +1.1% vs LY at constant rates online sales growth 14.2% vs. LY at constant rates underlying operating margin 4.3% (0.3 pts) vs. LY introducing new products such as Nature’s Promise sourdough breads and Taste of Inspirations charcuterie meats 20 Ahold Delhaize – Q3 2026
Page 21
EU&I Q3 2026 highlights 1. At constant rates net sales €9.8bn +3.1% vs. LY at constant rates online sales growth 3.1% vs. LY at constant rates underlying operating margin 4.0% flat vs LY driving resilient performance by carefully balancing savings and investments bol launched successful a range of healthy, own-brand high fiber products, responding to the latest health trends Albert delivered its 39th consecutive quarter of comparable sales growth (excl calendar shifts) Delhaize is investing 120 million euro in its own logistics operations to accommodate future growth Albert Heijn launched its latest AI- powered tool: Shophulp to make shopping easier and faster Maxi expanded its range of own brand products, growing penetration by 210 basis points YTD Ahold Delhaize – Q3 202621
Page 22
22 improving productivity by increasing output capacity by mechanization 20% 10% scaling what works using technology, data and AI as powerful drivers of productivity Ahold Delhaize – Q3 2026
Page 23
-181 -37 -6 -40 -86 -2 -6 747 1,104 FCF Q3 2025 YTD Changes in working capital Other operating cash flow Dividends from joint ventures Income taxes paid Net investments Net Lease Repayments Net interest paid FCF Q3 2026 YTD Q3 free cash flow bridge FCF Q3 2026 vs Last Year (in €m) Ahold Delhaize – Q3 202623 Q3 YTD free cash flow bridge FCF Q3 2026 YTD vs Last Year (in €m) Primarily the result of calendar and seasonal phasing between the quarters and year over year 122 -1 -5 12 -89 -13 29 445 389 FCF Q3 2025 Changes in working capital Other operating cash flow Dividends from joint ventures Income taxes paid Net investments Net Lease Repayments Net interest paid FCF Q3 2026 Includes majority of the impact of new supplier payment regulations in Serbia
Page 24
updated outlook 2026 year-over- year growth in dividend per share2,3 at least €1.25 billion save for our customers low single digit growth underlying EPS1 around €2.1 billion free cash flow underlying operating margin approaching 4% €1 billion share buyback2 around €2.7 billion gross capital expenditures 2026 is a 53-week calendar year 1. Based on constant rates 2. Management remains committed to the company's share buyback and dividend programs while continuously assessing macroeconomic, geopolitical, and legislative factors as part of its decision-making process. Additionally, the programs may be adjusted in response to corporate activities, including significant mergers and acquisitions 3. Our dividend policy is to target a dividend payout ratio range of 40-50% Ahold Delhaize – Q3 202624
Page 25
25 Ahold Delhaize – Q3 2026
Page 26
Q&A 26 Ahold Delhaize – Q3 2026
Page 27
thank you Ahold Delhaize - Q2 202427
Page 28
calendar Q3 2026 Ahold Delhaize – Q3 202628
Page 29
corporate calendar rolling 12 months Ahold Delhaize – Q3 202629 Q4 2026 Q3 2027 Q2 2027 April 14 Annual General Meeting of Shareholders Q1 2027 August 11 Results Q2 2027 February 17 Results Q4 & FY 2026 May 12 Results Q1 2027 November 4 Results Q3 2026 March 3 Annual Report 2026 publication