Deutsche Bank ConferenceDeutsche Bank ConferenceJune 2014

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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-lookingstatements describe further expectations, plans, options, results or strategies. Actualoutcomes and results may differ materially from those projected depending upon a varietyof factors, including but not limited to changes in the general economy or the markets ofDelhaize Group in consumer spending in inflation or currency exchange rates or inDelhaize Group, in consumer spending, in inflation or currency exchange rates or inlegislation or regulation; competitive factors; adverse determination with respect to claims;inability to timely develop, remodel, integrate or convert stores; and supply or qualitycontrol problems with vendors. Additional risks and uncertainties that could cause actualpresults to differ materially from those stated or implied by such forward-lookingstatements are described in our most recent annual report or Form 20-F and other filingswith the Securities and Exchange Commission. Delhaize Group disclaims any obligationt d t i th i f ti t i d i thi t tito update or revise the information contained in this presentation.

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Delhaize Group has clear priorities...

PrioritiesPrinciplesWho we are

• Put the customer back at the• The customer is at the center• Preferred food retailer • Put the customer back at the center

• Focus on core markets

• Realize more operating efficiencies

The customer is at the center

• Business is local and market sharematters

• Strengthen our core capabilities and

• Differentiated concept

• Fresh specialist, Private Label expertise Realize more operating efficiencies

• Execute with speed

g pimprove those needed to succeed

• Exercise discipline in capital allocation

• Multinational

• Strong local identity

• Use scale to reduce costs

• Respond to industry dynamics and trends

• Respectful of all Stakeholders

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... and a precise action plan

2012 2013 2014 2015

• Finalise divestiture of non-core assets

Diff ti t F d Li

• Reduce complexity through divestitures of peripheral non-core assets

• Differentiate Food Lion

• Improve Delhaize Belgium’scompetitiveness – Transformation Plan

• Deleverage Balance Sheet

• Improve Working Capitalto be implemented

• Decrease SG&A as % of sales• Increase capex discipline

• Stabilise SG&A as % of sales• Turnaround Maxi

• Accelerate growth in core markets(Hannaford, Alfa Beta)

• Re-establish Food Lion pricecompetitiveness

( a a o d, a eta)

• Pursue working capital improvementsand capex discipline

4

Delhaize Group has leadership positions in the markets where it operates

M k t P iti (1) M k t h (1)Market Position(1) Market share(1)

Food Lion # 1 or 2 in 8 DMAs(72% of sales)

12.9%( )

Hannaford # 1 or 2 in 7 DMAs(59% of sales)

16.5%

B l i #2 25 3%Belgium #2 25.3%

Greece #1 19.5%

Serbia #1 13.9%

Romania #1 in greater Bucharest 24.9%

5(1) Source: Nielsen – end of Q1 2014

Delhaize Group benefits from a solid financial structure

(€ in Millions)

Cash position

x2.72011 419Free cash flow

2013 1,145(1)

Net debt3452011

-45%2013 1 473

2011 2,6607732012

S&P’s adjusted net debt / EBITDA(2)

2013 1,4736692013

1 9

2.5

2013

2011-24%

6

1.92013

(1) Excluding Maxi acquisition(2) Adjusted for a.o. operating leases and post retirement obligations – as updated by S&P’s rating services in light of the new methodology issued in 2013; 2013 data

based on Delhaize’s own estimates according to S&P’s new methodology

... and despite progress made over the last 2 years, we still target further improvements in working capital

Core Working Capital(1) Days working capital(2)

US Belgium(€ in Millions)

5712011

182011 5

-222013102013 -2

1 day of Group core working capital in 2013 = approximately €60 million

7(1) Inventories + accounts receivables – accounts payables(2) Core working capital * 365 / sales (including discontinued operations)

Successful completion of the Food Lion repositioning is an encouragement to invest further in the brand...

TODAY

• 1,113 stores

6 consecutive quarters of positive comparable store sales growth at

Food Lion

• 36,000 sq ft on average

• 20,000 SKUs on average0.4%Q4 2012

• Convenient locations

• Low prices driven by strong Q3 2013 2 2%

Q2 2013 1.4%

Q1 2013 2.2%

p y gpromotions

• Local brand, close to communities Q1 2014

Q4 2013

3.8%

3.9%

Q3 2013 2.2%

(1)

communities

8(1) Excluding positive impact from severe winter weather

… since Food Lion commercial performance lags behind its key competitors

Average weekly sales per square foot ($)(1)

Estimated share of wallet potential(4)

7.5

+5.8%

Food Lion 2010 82%18%Food Lion today

7.9

10 2

Food Lion 2013

Average selected

26% 74%Average of local peers(3)

10.2g

peers(2)

Other grocery spendSpend at food retailer

Our Easy, Fresh & Affordable strategy is meant to increase

(1) Square footage data notes: peer data from Spectra for 17 states with DA operations, Adjusted by industry average to reflect estimated selling sq ft; Food Lion actual selling sq ft(2) W l t t W l t N i hb h d M k t Bi L H i T t P bli

the number of items per basket

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(2) Walmart supercenter, Walmart Neighborhood Market, Bi-Lo, Harris Teeter, Publix(3) Local peers include Bi-Lo, Harris Teeter, Publix, Giant Carlisle and Martins(4) Source: Nielsen Homescan, 52 weeks ending 12/28/13, Cross Outlet Facts, Retail Banner Shopper, Total US

We have begun the Easy, Fresh & Affordable journey…

• Easy to shop

• Easy to save

• Consistent quality

• Fresh in the store

• Dependable lowprices

y

• Easy to get in and out quickly

and fresh at home

• Appealing readyto eat meals

• Compellingpromotions

• Simplified commu-• Easy to find

dinner for tonight

to eat meals

• Large selection in fresh departments

S p ed co unication on pricing

• Private brands providing excellentproviding excellent value

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... with a precise roadmap

Q4 2013Q1 2014 Q4 2014 Q2 2015 2018/2019End Q2 2014

Finalised Phase iti i

Live tests in stores- 3 Lab stores opened in October 2013- 1 Pilot store opened in December 2013

repositioning

- 1 Pilot store opened in December 2013

In depth assortment changesFinetune center store assortment(1)- Finetune center store assortment( )

- Larger fresh assortment and Deli selection, test pre-packed meat- Review private label range- Enlarged promotions area

U d t d h k t t h lUpdated checkout technology- Updated point-of-sales technology- Track customer behavior and drive loyalty- Decreased waiting time at checkout

T i i f t ff

Roll out of new store concept

- Training of staff

77 stores in 2014 … Further roll out…

11(1) ~50% change in SKUs generates ~18% net reduction while increasing market relevance

‘Easy, Fresh & Affordable’ will rely on remodeling our Food Lion network for a step change in the shopping experience

Market test (77 stores): testing and fine-tuning Easy, Fresh & Affordable

• Capital expenditures in market tests of $115 million

• Testing different capital investments and evaluating commercial modules

• Markets:Wilmington (35 stores late A g st)• Wilmington (35 stores, late August)

• Greenville (42 stores, late November)

• Main lessons of the rollout will be in late 2014/early 2015

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In a tough competitive market, Delhaize Belgium maintained market share and customer satisfaction over the last few years

Market share (%)

30

#2 iti 25 3% k t h26

28

30

• #2 position, 25.3% market share

• Strong Affiliated network20

22

24

2008• Excellent locations

• Differentiated assortment Customer satisfaction

2008 Q1 2014

• Large fresh offering

• Broad private label range

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Delhaize Belgium plans to re-inforce its differentiated position

• Great customer satisfaction

Launch of 2 pilot stores in April centeredaround ‘Bien acheter, bien manger’ (‘Buy well, eat well’)

• Sales according to expectations

•New look & feel and customerexperience

• Enhanced Fresh departments (Fruits & Vegetable Bakery Butchery Fish)& Vegetable, Bakery, Butchery, Fish)

•Efficient checkout, increased self checkout

•Innovative and more efficient t tassortment

•More visible promotions • SG&A burden making business case not yet compelling

April 2014 H2 2014 2015

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2 pilot stores 2 additional pilot stores Use learnings from pilots

... and to tackle its cost handicap to ensure future profitable expansion

Cost per productive hour

Proposed Transformation Plan

• Introduce a lighter and more

Cost per productive hour(Delhaize = 100)

100Delhaize

Average:77g

efficient structure for company-operated supermarkets

• Provide more efficient procedures

100

Colruyt

Delhaize

84

Provide more efficient procedures and working methods and place full focus on new technologies

• Adapt the wage and laborLidl

Carrefour

78

78

• Adapt the wage and laborconditions of all associates

• Stop company operated activities in 14 k t th t h

Aldi

Lidl

77

78

14 supermarkets that have an unsustainable financial performance

Albert Heijn 67

1515Source: AT Kearney

The legal procedure (Law Renault) consists of 3 phases

Statement of intention to

Phase IInformation &

Phase IINegotiation of

Phase IIIImplementa-

Phase IInformation & Consultation

Workers Council Consultationg

social plan, new wage & labour conditions

ption of social plan

June 11, 2014 Answer questions and assess suggestions

Constructive dialogue focused on interest of associates

Application of social plan, new wage & labor conditions

Phase IIIImplementation of the social

16

pplan

Delhaize Group has a decisive and practical approach for the years to come

2014 2015 and beyond

• Roll out Easy, Fresh & Affordable atF d Li

• Finalise portfolio optimization

T kl D lh i B l i t Food Lion

• Roll out New Generation Stores in Belgium; Transformation Plan to be

• Tackle Delhaize Belgium costhandicap

• Test Food Lion Easy Fresh & Belgium; Transformation Plan to beimplemented

• Accelerate disciplined expansion in

Test Food Lion Easy, Fresh & Affordable

• Prepare for growth in selectedselected markets (Hannaford, Greece)

markets

• Stabilise Maxi

Pressure on Capital Discipline & Working Capital improvements will not be released

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p

Appendix

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Q1 2014 highlights by region

• Market share stable or increasing in all our operations except Belgium

• U.S. • 6th consecutive quarter of positive real growth at both Food Lion and Hannaford

(adjusted for Easter timing)( j g)• Food Lion’s momentum supported by Phase repositioning and weather• Profit evolution impacted by price investments and costs related to winter storms

B l i• Belgium• Weaker than expected Q1 sales• Profitability significantly impacted by investments in prices and promotions in

combination with higher SG&Acombination with higher SG&A

• SEE• Alfa Beta and Mega Image continued to perform well• Serbia performing below our expectations

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Financial results – Q1 2014

Q1(€ in Millions)

% Growth

2013 2014 Actual Rates Identical Rates

Revenues 5,104 5,120 0.3% 2.8%

24 6% 24 0% (62 bps) (58 bps)

2013 2014 Actual Rates Identical Rates

24.6% 24.0% (62 bps) (58 bps)Gross Margin

SG&A as % of revenues 21.3% 21.3% (1 bps) (3 bps)

1933.8%

1613.1%

(16.5%)(63 bps)

(14.2%)(63 bps)

(48) (45) (4.4%) (1.4%)

Underlying Operating Profit / Margin

Net finance costs

(20) (22) 12.2% 15.3%

(48) (10) 79 8% 80 5%

Income tax expenses

Discontinued operations

51 80 57.6% 63.0%

(48) (10) 79.8% 80.5%Discontinued operations

Group Share in Net Profit

20

255 46(1) (81.8%) (80.7%)

(1) Excluding proceeds of the first tranche of the disposal of Sweetbay, Harveys and Reid´s (€41 million)

Free Cash Flow

EBITDA

(€ in Millions) Underlying EBITDAEBITDA

At Id ti l337Q1 2013310Q1 2013

At Identical Rates

312

-7.5%

Q1 2014309

-0.4%

Q1 2014

At Actual Rates

337

-9.9%

Q1 2013310

-2.9%

Q1 2013

304Q1 2014301Q1 2014

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Delhaize America - organic revenue growth and comparable store sales growth

Delhaize America

+0.3%

-0.8%

Q1 2014 +4.1%+4.6%

O i hE iC l dCSS Organic growthExpansionCalendar Impact

CSS

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Delhaize America – underlying operating margin

Delhaize AmericaDelhaize AmericaUnderlying Operating Margin

Q1 margin impacted by:

Q1 2014 3 6%

Q1 2013 4.0% - Q1 margin impacted by:• Price investments of around ~70bps

(Food Lion Phase 4 & 5, Hannaford)• Commodity price increases in meat,

produce and dairyQ1 2014 3.6% produce and dairy• Costs linked to severe weather

conditions• Volume growth

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Delhaize Belgium - organic revenue growth and comparable store sales growth

Delhaize Belgium

-0.8% -0.8%

Q1 2014

-0.7%

CSS O i hE i

+0.7%

C l dCSS Organic growthExpansionCalendar Impact

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Delhaize Belgium – underlying operating margin

Delhaize BelgiumDelhaize BelgiumUnderlying Operating Margin

Q1 2014 3 1%

Q1 2013 4.8% - Q1 margin impacted by:• Sales performance• Price investments and promotions (70

bps)Q1 2014 3.1% • Supply chain costs

• Higher SG&A costs (staff costs, remodeling related costs)

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SEE - organic revenue growth and comparable store sales growth

Southeastern Europe

3 5%

Q1 2014

+3.5%

+4.4%

O i hE iC l dCSS

-0.4%-0.5%

Organic growthExpansionCalendar Impact

CSS

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SEE – underlying operating margin

Southeastern EuropeSoutheastern EuropeUnderlying Operating Margin

Q1 2014 1 9%

Q1 2013 2.2%

- Q1 margin impacted by:• Negative sales leverage in Serbia

Q1 2014 1.9% • Improved procurement conditions

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Free Cash Flow generation

(€ in Millions) Free Cash Flow evolution

300

79

39

79

8757 41

87

46

(2)Operating

FCFOtherCash capexNet payment

of interest and taxes

Changes in core working

capital

EBITDA FCF1st tranche of proceeds

from Sweetbay,

(1)

(3)

28(1) Including €11 million from discontinued operations(2) Mainly higher bonus paid in the US in 2014 (3) Remaining proceeds amount to €138 million and will be received in Q2 2014

Harveys and Reid’s