Koninklijke Ahold Del Ord

Today we present our second quarter results. In the past month, inflation has remained at elevated levels due to higher energy, commodity, transport and labour costs. The flexibility that our brands and associates are showing by adjusting assortments quickly to customers' needs has been of great importance for our solid performance in this quarter. Our brands do this by extending own brand assortments with high quality products of good value and implementing personalized offers through loyalty programs. Combined with our 1 billion euros cost savings program, these actions are vital in helping us to support our customers in these challenging times. More recently, we have started to see some first signs that inflation has surpassed its peak. In response, our brands are reflecting this in product prices where they can, and particularly in fresh and healthy assortments. Looking at the Q2 numbers, group net sales increased by 4.3%. In the US, growth in loyalty sales and increasing online penetration were the strong contributors to our performance. Our brand Hannaford in the Northeast and Food Lion in the Southeast continue to show strong market share gains. In Europe, sales grew by 6.3% and our local brands maintained the loyalty of customers. A key highlight is the performance of Bold.com, where gross merchandise value grew by 10.5%. In the second quarter, the group underlying operating margin was 4.1%. Cost increases due to inflation have had an impact on our margin, especially in Europe, where the margin was down 20 basis points compared to the same quarter last year. Returning our margin in Europe to our historical levels is one of our priorities. A hallmark of our company is our portfolio of great local brands with deep roots in their communities. And as a great example, this quarter, we began celebrations for the giant company's 100 years anniversary. Across the states of Pennsylvania, New Jersey, Maryland, Virginia, and West Virginia, the giant company serves families in over 190 stores, including 132 pharmacies and 187 pickup points. centered and grounded in its communities, as part of the giant company's Eliminating Hunger program, it has delivered over $15 million to local food banks to date. A key investment and progress area for Isle de Les is our ESG agenda, no matter how challenging the business climate is. We are pleased to share that we have achieved a triple A rating from MSCI, which is an important benchmark for investors. Being categorized into the highest scoring range indicates that Alderles is a leader in the industry in managing the most significant ESG challenges and opportunities. In turn, it helps us attract ESG-minded investors to fund our efforts that contribute towards our mission of leading the transition to a sustainable food system. Another significant achievement is bol.com's B Corp certification. With 13 million customers and 52,000 local sales partners, we are proud that an e-commerce platform of its size has been able to achieve this. Another of our Dutch brands, Albert Heijn, has recently announced that they're also on the way to B Corp. And I'm proud of our teams and their ambitions. Looking to the remainder of this year, we are well on track to deliver on our expectations. continue to invest in our company with increased investments in digital capabilities, as well as in health and sustainability initiatives. We also remain committed to finding ways to become more efficient and save costs to reinvest in our customer value proposition. Above all, we remain focused on our central role as an active member of the communities that we serve. And by offering high-quality, affordable products for every wallet, both online and offline, and through offering extra help and care in times of need. I invite you to have a look at our website to read more about how our brands are contributing. Thanks, and see you next quarter, when I will be able to introduce our new CFO, Jolanda Poots-Bell, to you.

ladies and gentlemen good morning and welcome to the analyst conference call on the second quarter and half year 2023 results of our hotel hazer please note that this call is being webcast and recorded please note that in today's call forward-looking statements may be made all statements other than statements of historical facts may be forward-looking statements such statements may involve known and unknown risks and uncertainties that could cause actual results performance or events to differ materially from those included in the statements Such risks and uncertainty are discussed in the interim report, second quarter and half year 2023, and also in Aho Delherza's public filings and other disclosures. Forward-looking statements reflect the current views of Aho Delherze's management and assumptions based on information currently available to Aho Delherze's management. Forward-looking statements speak only as of the date they are made and Aho Delherze does not assume any obligation to update such statements except as required by law. The introduction will be followed by a Q&A session. Any views expressed by those asking questions are not necessarily the views of Aarhus Dalherza. At this time, I would like to hand the call over to JP O'Meara, Senior Vice President, Head of Investor Relations. Please go ahead, JP.

Thank you, operator, and good morning, everyone. I'm delighted to welcome you today to our Q2 2023 results conference call. On today's call is Franz Muller, our President and CEO. After a brief presentation, we will open the call for questions. In case you haven't seen it, the earnings release and the accompanying presentation slides can be accessed through the investor section of our award-winning website, ajoeldelez.com, which also provides extra disclosures and details for your convenience. To ensure everyone has the opportunity to get their questions answered today, I ask that you initially limit yourself to two questions. If you have further questions, then feel free to re-answer the queue. To ensure ease of speaking, all growth rates mentioned in today's prepared remarks will be at constant exchange rates unless otherwise stated. So with that, over to you, Frans.