Delhaize Group in 2014
Content 3 Delhaize Group 4 Highlights 8 A leading food retailer 20 Strategic Framework 28 Delhaize Group timeline 32 Contact
Delhaize Group in 2014
Delhaize Group Delhaize Group is a Belgian international food retailer with leading positions in key markets. Our operating companies have acquired these positions through distinct go-to-market strategies. The Group is committed to offer its customers a locally differentiated shopping experience, to deliver superior value and to maintain high social, environmental and ethical standards. Our Group’s strength is supported by the close cooperation of its operating companies at both the regional and global levels. Delhaize Group’s stock is listed on NYSE Euronext Brussels (DELB) and the New York Stock Exchange (DEG).
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Highlights
Highlights
â‚Ź 586
million operating free cash flow
7
countries
â‚Ź 762
million underlying operating profit3
2014 figures
149 968 associates worldwide2
â‚Ź 21.4 billion revenues3
3 402 stores1
3
continents
+ 2.6%
organic revenue growth
â‚Ź 606
million investments
6
Frans Muller President and CEO, Delhaize Group
“We want to continue to drive a greater collective focus on our customers across the Group, work together to improve the consistency of our performance, and operate our customers’ preferred local supermarkets.”
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A leading food retailer
A leading food retailer Delhaize Group is a Belgian international food retailer present in seven countries on three continents. With its locally robust brands, the company is number one or number two in most of its markets.
2014 figures
Number of stores per country
Indonesia
Greece
Serbia
Romania
Belgium & Luxembourg
122
308
387
410
880
U.S.1
1 295
Our regions
United States
Belgium & Luxembourg
3 402 stores
1
Indonesia: 122
U.S.: 1 2951
Southeastern Europe & Indonesia
149 968 associates2
U.S.: 96 6762
Indonesia: 6 419 Southeastern Europe: 30 602
Southeastern Europe: 1 105
Belgium & Luxembourg: 880
â‚Ź 21.4
billion revenues3
Belgium & Luxembourg: 16 271
â‚Ź 762
million underlying operating profit3
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A leading food retailer
2014 figures
United States Delhaize America continues to deliver the highest contribution to Delhaize Group revenues. Through Food Lion and Hannaford, the company operates with two different store formats.
63%
of Group revenues in the U.S.
+
6.6%
1 295
13.4
96 676
4.4%
15
revenues
3
â‚Ź
billion revenues3
+
comparable store sales
stores1
associates2
states
12
A leading food retailer
2014 figures
Belgium & Luxembourg
Delhaize Group
In Belgium and Luxembourg, Delhaize Group operates a wide variety of company-operated and affiliated store formats including supermarkets and proximity stores and it aims to accelerate its online presence with its e-shop at Delhaize.be.
-
3.0%
880
4.9
16 271
revenues
â‚Ź
billion revenues
-
stores
associates
3.5%
comparable store sales
23%
of Group revenues in Belgium & Luxembourg
14
A leading food retailer
Southeastern Europe Revenue growth in Southeastern Europe was largely driven by our operations in Greece and Romania. In Serbia, despite tough economic conditions, Delhaize Group invested in a new distribution center that will support continued network expansion and ultimately employ 750 people.
+
4.3%
+
3.1
30 602
revenues4
â‚Ź
billion revenues
2014 figures
-
1.0%
comparable store sales
114
new stores in Romania
associates
Delhaize Group
14%
of Group revenues in Southeastern Europe
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A leading food retailer
Indonesia Delhaize Group operates in Indonesia through a 51% holding stake in Super Indo. Focus on store expansion in residential areas and aggressive market renewals were the engine of growth in 2014.
122
6 419
14
+
stores
2014 figures
stores remodeled
associates
8
new stores
Delhaize Group
“Our goal is to be known as the best in fresh, delivering the best shopping experience at the best everyday value.�
18
Mats Jansson Chairman of the Board of Directors, Delhaize Group
“Our new Strategic Framework puts our customers at the center of everything we do and provides a roadmap for a winning business.�
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Strategic Framework
Strategic Framework Our Purpose, our Promise, our Principles and our Values make up our Strategic Framework. They are underpinned by our Sustainability Strategy.
At the core of our Strategic Framework: our Purpose
To operate our customers’ preferred local supermarkets and work together to support that ambition.
Our Promise These are the promises we make to our stakeholders:
Our customers tru st us to provide a great loc al shopping experience, in store s and online.
trust us Our communities neighbors. to be responsible
us to be Our associates trust r. plo a rewarding em ye
Our shareholders
trust us for value creation.
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Strategic Framework
Our Principles To keep our Promise and achieve our Purpose we follow four principles:
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2 Put customers first We listen to our customers and passionately deliver the best shopping experience.
3
Learn to grow We get stronger from our experiences by analyzing external developments, learning from each other and embracing change.
4 Lead locally Our brands and people are local leaders in their communities.
Drive profitable growth today & beyond We pursue profitable sales growth and allocate human, financial, and natural resources effectively to improve our cost position.
Our Values
Determ
ination
Integrity
Humility
Humor
Courage
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Strategic Framework
Our Sustainability Strategy Underlying our Promise and Principles is “Supergood�, our sustainability ambition. Being Supergood enables us to deliver on our Purpose.
1
Sustainable private brands Our private brands make delicious, sustainable food affordable.
3
Healthy lifestyles Our customers and associates lead healthier, more sustainable lives.
2
4
Associate diversity & development Our stores welcome diverse associates and customers.
Zero waste Our waste-free operations support clean, thriving local communities.
Being Supergood is Delhaize Group’s sustainability ambition.
“We will delight our customers and energize our associates by helping them live happier and eat healthier in thriving local communities.”
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“Our stores welcome diverse customers and associates; we work hard to ensure our associate diversity reflects our local communities.�
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Delhaize Group timeline
Delhaize Group
timeline Serving customers since 1867 and proud to be growing ever since.
1883
Factories
Delhaize starts to manufacture and sets up a series of factories producing foods under its own brand name: chocolate and biscuit factories, a distillery, coffee roasting. In 1914, Delhaize ‘Le Lion’ has 23 factories.
1867
Start
Jules Delhaize, his brother Edouard and his brother-inlaw Jules create a network for food retailing in Belgium, charging set prices and cutting down the succession of intermediaries.
1919-1939
Crisis
During the crisis of the thirties, Delhaize enlarges its assortment with its own discount brand Derby.
1997
The East
Delhaize Group opens up a new avenue for growth towards the East, by acquiring stakes in Indonesia.
1974
United States
Delhaize acquires a stake in the Food Town chain, operating 22 supermarkets in the U.S. During the next 10 years, their number will climb to 226 supermarkets.
1962
Stock Exchange, Brussels
Delhaize is listed on the Brussels Stock Exchange.
2001
Stock Exchange, Ny
Delhaize Group is introduced on the New York Stock Exchange. 2011
Southeastern Europe
After the acquisition of all the shares of a Serbian retailer, Delhaize Group becomes one of the leading food retailers in Southeastern Europe.
2014
Strategic framework
Delhaize Group launches its Strategic Framework and focuses on serving its core markets. 1957
First supermarket
Opening of the first super market in Belgium (Place Flagey, Brussels). It is the first fully self-service supermarket in Belgium, with pre-packaged meat and frozen froods – just like in America!
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“With 149 968 associates we provide a great local shopping experience to 20 million customers each week.�
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Contact
COMPANY INFORMATION Registered Office: Delhaize Group SA rue Osseghemstraat 53 1080 Brussels, Belgium Tel: +32 2 412 21 11 - Fax: +32 2 412 21 94
OPERATIONS United States FOOD LION P.O. Box 1330, 2110 Executive Drive Salisbury - NC 28145-1330, U.S.A. Tel: +1 704 633 8250 www.foodlion.com
Company Support Office: Delhaize Group Square Marie Curie 40 1070 Brussels, Belgium Tel: +32 2 412 22 11 - Fax: +32 2 412 22 22 www.delhaizegroup.com Company number: 0402 206 045
HANNAFORD 145 Pleasant Hill Road Scarborough - ME 04074, U.S.A. Tel: +1 207 883 2911 - Fax: +1 207 883 7555 www.hannaford.com
Delhaize Brothers and Co. “The Lion” (Delhaize Group) SA is a Belgian company formed in 1867 and converted into a limited company on February 22, 1962.
Belgium, G.D. of Luxembourg DELHAIZE BELGIUM Rue Osseghemstraat 53 - 1080 Brussels, Belgium Tel: +32 2 412 21 11 - Fax: +32 2 412 21 94 www.delhaize.be
INVESTORS AND MEDIA For all questions regarding Delhaize Group and its stock, please contact: Delhaize Group Investor Relations Department Square Marie Curie 40 1070 Brussels, Belgium Tel.: +32 2 412 21 51 - Fax.: +32 2 412 29 76
Greece ALFA BETA VASSILOPOULOS 81, Spaton Ave. - Gerakas Attica, Greece 153 44 Tel: +30 210 66 08 000 Fax: +30 210 66 12 675 www.ab.gr
Questions can be sent to investor@delhaizegroup.com. corporatecommunications@delhaizegroup.com
Serbia Delhaize Serbia Jurija Gagarina 14 - 11070 Belgrade, Serbia Tel: +381 11 715 34 00 - Fax: +381 11 715 39 10 www.maxi.rs
Information regarding Delhaize Group, including press releases, annual reports and share price can be found in three languages (English, French and Dutch) on Delhaize Group’s website: www.delhaizegroup.com.
Romania MEGA IMAGE 95 Siret Str. - Sektor 1 - Bucharest, Romania Tel: +40 21 224 66 77 - Fax: +40 21 224 60 11 www.mega-image.ro
You can also subscribe through the email alert. Indonesia PT LION SUPER INDO Menara Bidakara 2, 19th floor Jl Jend. Gatot Soebroto kav 71-73 Jakarta Selatan 12870, Indonesia Tel.: +62 21 2929 3333 Fax: +62 21 29069441-45 www.superindo.co.id
1
Does not include 66 Bottom Dollar Food stores. In November 2014, Delhaize Group signed an agreement to sell its Bottom Dollar Food store locations to ALDI Inc. The stores were closed on Jan 12th, 2015 but the transaction with ALDI Inc. has not been completed yet.
2 Does not include 2040 Bottom Dollar Food associates. In November 2014, Delhaize Group signed an agreement to sell its Bottom Dollar Food store locations to ALDI Inc. The stores were closed on Jan 12th, 2015 but the transaction with ALDI Inc. has not been completed yet. 3 Including 53rd week at Delhaize America. 4 At identical exchange rate.
Printed 28/02/2015
www.delhaizegroup.com