Deutsche Bank Conference Paris June 21, 2012 Pierre Bouchut EVP - PowerPoint PPT Presentation

Deutsche Bank Conference – Paris – June 21, 2012 Pierre Bouchut – EVP & Chief Financial Officer

Forward looking statements “This presentation includes forward-looking statements within the meaning of the U.S. federal securities laws that are subject to risks and uncertainties. Forward-looking statements describe further expectations, plans, options, results or strategies. Actual outcomes and results may differ materially from those projected depending upon a variety of factors, including but not limited to changes in the general economy or the markets of Delhaize Group, in consumer spending, in inflation or currency exchange rates or in legislation or regulation; competitive factors; adverse determination with respect to claims; inability to timely develop, remodel, integrate or convert stores; and supply or quality control problems with vendors. Additional risks and uncertainties that could cause actual results to differ materially from those stated or implied by such forward-looking statements are described in our most recent annual report or Form 20-F and other filings with the Securities and Exchange Commission. Delhaize Group disclaims any obligation to update or revise the information contained in this presentation.” 2

Delhaize Group is an international supermarket operator 1 • Revenues €21.1 billion • EBITDA €1.5 billion • Stores 3 408 – 2 561 supermarkets – 773 convenience stores – 74 discount stores • Countries 11 • Employees 160 000 • Selling m² 5.4 million m² 1 All figures as of December 31, 2011 3

With a number of key strengths • Supermarket and convenience expertise • Private brands experience 1 - Belgium / 56% of revenues - U.S. / 27% of revenues - SEE&A / 18% of revenues • Diversified geographic exposure 1 - U.S. / 65% of revenues, 1 650 stores - Belgium / 23% of revenues, 821 stores - SEE&A / 12% of revenues, 937 stores • Integrated logistics • Strong brand equity at Hannaford, Delhaize Le Lion and Alfa Beta 1 All figures as of December 31, 2011 4

But confronted with several ongoing challenges • Economic headwinds • Rapid and structural change in consumer behavior, notably in the U.S. • Increasingly competitive environment in Belgium • Ongoing integration of Maxi • Uncertainty in Greece 5

Which has led us to establish clear and actionable priorities in keeping with our New Game Plan • Ongoing repositioning at Food Lion 1 • Price investments at Delhaize Le Lion and Hannaford • SG&A reduction • Accelerated expansion in selected markets and formats • Focus on Free Cash Flow 1 Representing close to 50% of our Group revenues 6

Food Lion brand repositioning puts the focus back on the customer • Portfolio optimization announced in January 2012 1 • Food Lion repositioning centered around: Competitive and consistent PRICE prices (Promotional  EDLP) Improved produce, particularly QUALITY assortment and freshness Better shopping experience SIMPLICITY (clean and easy place to shop) 1 Closure of 126 underperforming stores in the U.S. and 20 underperforming stores in Southeastern Europe which resulted in €127 million impairment charges in Q4 2011 and in €200 million negative impact on earnings in 2012 7

This repositioning is being rolled out through successive phases… Late 2012 / August March May Early 2013 2012 2012 2011 Approximately 80% of Phase 4 Phase 5 Phase 1 Phase 2 Phase 3 network repositioned by early 2013 172 stores 268 stores 269 stores 177 stores Raleigh Richmond Charlotte Norfolk Greensboro Roanoke Greensville/ Charlottesville Spartanburg 8

With encouraging results Difference between Phase One and the rest of Food Lion network Same store March 2012 April 2012 May 2012 # transactions growth 5.4% 5.8% 4.4% # items per transactions growth 11.5% 12.0% 6.3% Same store March 2012 April 2012 May 2012 Volume growth 10.3% 10.6% 6.8% 9

In Belgium, we will continue to invest to improve the value proposition to our customers Private brands 1 – Number of SKUs Price-index Colruyt vs. Delhaize (100) 6 233 private brand products 98 Premium (147) 96.9 97 96 95 93.8 Mainstream (5 634) 94 93 92 91 91.2 90 2012 First price (452) 2004 2006 2008 2010 A private brand offering which provides an unparalleled value proposition to our customers 1 Figures as of December 31, 2011 10

While reinforcing our historical strengths • Expansion of store network (25 new stores in Belgium this year) • Roll out New Generation Store concept - New functional furniture - Innovation and differentiation - Store efficiency - Modern colors and revamped look • Stepping up number of remodelings (double compared to 2011) • Acceleration of e-commerce development 1989 Home-delivery Pick-up at store & home delivery 2001 Pick-up at store 2009 11

In Greece, our team has been proactive and has managed to successfully increase market share while maintaining profitability 5% 20.0% 19.3% 18.1% 18.0% 16.8% 16.0% 14.5% 14.0% Understanding client needs is even more critical in 12.0% difficult times 10.0% 3% 2008 2009 2010 2011 Market share Operating margin 12

Our decided Food Lion repositioning and our price investments result in a decrease in our underlying operating margin Delhaize Group underlying operating margin evolution 1 Best-in-class operating margin Impact of our proactive 5.0% decision to invest in long- 4.9% 4.9% 4.8% term growth initiatives 4.4% 3.5% 2007 2008 2009 2010 2011 Q1 2012 2012e 1 At actual exchange rates; operating margin for 2007; underlying operating margin for 2008-2012 13

As a result, cost savings are critical in financing our price investments and other sales growth initiatives Generate cost savings Improve price and shopping experience Virtuous cycle of Improved retail price perception Drive sales momentum and create sales leverage 14

Therefore, we have decided to further intensify our cost savings program Cumulative gross cost Significant reservoir of savings (€ in millions) cost savings 232 2010 • Improve supplier terms • Reduce HQ costs 2011 407 • Eliminate complexity 500 target • Acceleration of non-food 2012 550 Global Procurement • SAP Retail implementation 2013 • Store productivity 2014 Short-term source of savings Medium-term source of savings 15

And to focus on generating a minimum of €500 million in Free Cash Flow through Capex discipline and Working Capital improvements • More disciplined and selective Free Cash Flow (€ in millions) capital expenditures - Capex guidance revised down by €100 million to €700-750 million 343 1 2011 for 2012 500 2012 • Working capital improvements target - Inventories - Accounts payable 1 Excluding Delta Maxi acquisition purchase price 16

With the view of reinforcing our BBB-/Baa3 credit rating 1i Moody’s Standard & Poor’s Adj. RCF Adj. FFO Adj. Debt Adj. Net Debt / Adj. Net Debt / Adj. EBITDA / Adj. Net Debt / Adj. EBITDA 35% 2.0x 30% 3.0x Delhaize Delhaize Baa2 BBB 3.1x 31% 2.5x 25% 3.5x 30% Delhaize Delhaize Baa3 BBB- 2.8x 24% 20% 4.0x 25% 3.0x Ba1 BB+ 18% 4.5x 20% 3.5x 1 All figures as of December 31, 2011 17

We also plan to expand in key areas to support sustained organic growth • Target to open between 200 and 230 new stores in 2012 Organic revenue growth • Strong expansion plans at Mega Image in Romania • Solid expansion plans at Super Q1 2012 2.3% Indo in Indonesia • Build out to density the Q1 2011 0.7% Philadelphia and Pittsburgh markets with Bottom Dollar Food over 2012 and 2013 • Increased number of remodelings at Delhaize Le Lion 18

We confirm our outlook for 2012 • Opening of 200 to 230 new stores in 2012 (20 to 50 net new stores after portfolio optimization and store closings) • Approximately 700 Food Lion stores repositioned by year-end 2012 • Intensive focus on price competitiveness • Expect to exceed the €500 million gross cost savings target by the end of 2012 and intensify cost savings program • Target of €500 million Free Cash Flow generation in 2012 through more disciplined capital expenditures (€700-750 million in 2012) and improvements in working capital • Underlying operating profit expected to decrease by 15% to 20% at identical exchange rates 19

We are working on the right initiatives and are confident that over time, they will lead us back to profitable growth Cost savings • Sucess of Food Lion brand repositioning • Price investments at Sales Improved growth pricing Hannaford and Delhaize Le Lion Expansion & new • Cost savings store openings • Expansion 20

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