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Fourth Quarter Full Year Earnings 2008

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Fourth Quarter / Full Year Earnings 2008. Kimberly Ross. Chief Financial Officer. March 2, 2009 ... Solid performance in 2008. All targets achieved. Dividend ... – PowerPoint PPT presentation

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Title: Fourth Quarter Full Year Earnings 2008


1
Fourth Quarter / Full Year Earnings 2008
  • Kimberly Ross
  • Chief Financial Officer
  • March 2, 2009

2
Another successful year for Ahold
  • Solid performance in 2008
  • All targets achieved
  • Dividend increased by 12 to 0.18


2
3
Q4 and full-year 2008 headline numbers
(in mln EUR)
3
4
Q4 2008 retail operating margin
(in mln EUR)
404
7
- 3
8
392
6.1
5.9
Q4 2008 Underlying
Q4 2008 Reported
Real estate
Impairments
Restructuring
4
5
FY 2008 retail operating margin
(in mln EUR)
- 45
36
1.297
1,294
13
5.0
5.0
FY 2008 Underlying
FY 2008 Reported
Real estate
Impairments
Restructuring
5
6
Update 500 million cost savings program
  • 350 million of annual savings as of year-end
    2008.
  • Top three areas
  • - Shrink - Distribution - Overhead
  • We will reach 500 million by the end of 2009.
  • Details for further cost saving initiatives to be
    provided later this year.


6
7
Core Corporate Center costs more than halved
(in mln EUR)
189
135
106
86
2005
2006
2008
2007
7
8
Cash flow
(in mln EUR)
2008
B/(W) 2007
Operating cash flow Working capital
Investments and acquisitions of fixed
assets Other changes and divestments Cash flow
before financing
1,858 100 (1,045) 360 1,272
89 (77) (276) (5,091) (5,354)
8
9
Gross and net debt
Net debt
(in mln EUR)
Gross debt
5.8bn lower
10,021
7,750
6,480
6,816
5,379
5,522
4,241
4,636
2,116
1,377
YE 2004
YE 2005
YE 2006
YE 2007
YE 2008
9
10
Gross debt maturity profile
2,575
(in mln EUR)
558
500
459
79
70
2009
2010
2011
2012
2013
2014
10
11
Pensions - Overview
  • The Netherlands
  • Defined benefit plans
  • Approx. 30,000 employees
  • United States
  • Defined contribution plans
  • Approx. 64,000 employees
  • Defined benefit plans
  • Approx. 21,000 employees
  • Multi-employer plans
  • Approx. 53,000 employees

11
12
Pensions Balance sheet
(in mln EUR)
YE 2006
YE 2008
YE 2007
Company plans surplus / deficit Multi-employer
plan deficit
(199)
486 (375)
(66) (458)
12
13
Pensions PL impact
(in mln EUR)
2007
2008
2009
Better / (worse) than previous year
38
61
(98)
13
14
Pensions Cash contributions
(in mln EUR)
2007
2008
2009
Total group cash contributions
106
242
260
14
15
2008 Delivery
Retail underlying operating margin 5.0 Capex
1.1 billion Net interest expense 234
million Corporate Center cost more than halved
500 million cost saving program on
schedule Upgraded to Positive outlook by
SP Dividend increased to 0.18

15
16
Fourth Quarter / Full Year Earnings 2008
  • John Rishton
  • Chief Executive Officer
  • March 2, 2009

17
We will transform our individual retail banners
into powerful consumer brands… Ahold Retail
Review - November 2006
18
VIP Progress
  • Establish advantaged price position
  • Improve price perception
  • Improve ID unit volume trends
  • Increase ID customer transactions
  • Reduce costs to help fund price reductions
  • Launch brand development plan
  • Improve ID sales

19
Identical sales growth accelerating

Excluding gas
20
Identical sales growth turning positive

Excluding gas
21
Identical sales growth remains strong


Excluding gas
22
Identical sales growth exceptional


23
Identical sales growth volatile


24
Priorities for 2009
  • Balance
  • Customer focus

25
Track record
2008
2007
2006
  • Margin
  • Capex
  • Interest expense
  • Divestments
  • Value Improvement Program
  • 500 million cost savings
  • 50 Corporate Center
  • Investment grade
  • Dividend

26
Cautionary notice
  • This presentation includes forward-looking
    statements, which do not refer to historical
    facts but refer to expectations based on
    management's current views and assumptions and
    involve known and unknown risks and uncertainties
    that could cause actual results, performance or
    events to differ materially from those included
    in such statements. These forward-looking
    statements include, but are not limited to,
    statements as to the annual dividend for 2008,
    Aholds response to the economic environment and
    its ability to give better value to its customers
    and to continue to improve its offer and cost
    reduction, Aholds ability to respond to changes
    in consumer behavior and market conditions,
    Aholds strategy and business model and the
    expected sales growth, underlying retail
    operating margin, capital expenditure net
    interest expense, divestments and cost savings.
    These forward-looking statements are subject to
    risks, uncertainties and other factors that could
    cause actual results to differ materially from
    future results expressed or implied by the
    forward-looking statements. Many of these risks
    and uncertainties relate to factors that are
    beyond Aholds ability to control or estimate
    precisely, such as the effect of general economic
    or political conditions, fluctuations in exchange
    rates or interest rates, increases or changes in
    competition, Aholds ability to implement and
    complete successfully its plans and strategies,
    the benefits from and resources generated by
    Aholds plans and strategies being less than or
    different from those anticipated, changes in
    Aholds liquidity needs, the actions of
    competitors and third parties and other factors
    discussed in Aholds public filings. Readers are
    cautioned not to place undue reliance on these
    forward-looking statements, which speak only as
    of the date of this presentation. Koninklijke
    Ahold N.V. does not assume any obligation to
    update any public information or forward-looking
    statements in this presentation to reflect
    subsequent events orcircumstances, except as may
    be required by securities laws. Outside the
    Netherlands, Koninklijke Ahold N.V., being its
    registered name, presents itself under the name
    of Royal Ahold or simply Ahold.

27
Track record
2008
2007
2006
  • Margin
  • Capex
  • Interest expense
  • Divestments
  • Value Improvement Program
  • 500 million cost savings
  • 50 Corporate Center
  • Investment grade
  • Dividend

27
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