Analysts’ Meeting

2002 Annual ResultsDelhaize Group

Brussels - March 13, 2003

2

Safe Harbor

“This presentation includes forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those stated in any forward-looking statements based on a number of factors. Delhaize Group assumes no obligation to update the information contained in this presentation.”

3

Summary

Financial Results 2002Craig Owens, CFO of Delhaize Group

Accomplishments in 2002 and Priorities ofDelhaize Group for 2003

Pierre-Olivier Beckers, CEO of Delhaize Group

Strategic Sales and Cost Initiatives at Food LionRick Anicetti, CEO of Food Lion

Financial Results 2002

Craig Owens, CFO of Delhaize Group

5

Highlights 2002 Results

Continued organic sales growth

Strong operating margins

Growth in reported earnings per share

High free cash flow

Significant dollar impact

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(in millions) 2002 2001 % Change

United States USD 15,020 15,141 -0.8%

of which Delhaize America USD 15,020 14,891 +0.9%

Belgium EUR 3,420 3,213 +6.5%

Southern and Central Europe EUR 1,666 1,091 +6.9%

Asia EUR 218 187 +16.6%

Delhaize Group EUR 20,688 21,396 -3.3% *

(in millions) 2002 2001 % Change

United States USD 15,020 15,141 -0.8%

of which Delhaize America USD 15,020 14,891 +0.9%

Belgium EUR 3,420 3,213 +6.5%

Southern and Central Europe EUR 1,666 1,091 +6.9%

Asia EUR 218 187 +16.6%

Delhaize Group EUR 20,688 21,396 -3.3% *

Delhaize Group 2002 Sales

* Organic sales growth of + 2.1%

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2002 2001

United States 8.4% 8.6%

Belgium 5.3% 5.4%

Southern and Central Europe 4.2% 4.3%

Asia 1.0% 1.2%

Delhaize Group 7.4% 7.7%

2002 2001

United States 8.4% 8.6%

Belgium 5.3% 5.4%

Southern and Central Europe 4.2% 4.3%

Asia 1.0% 1.2%

Delhaize Group 7.4% 7.7%

EBITDA Margin

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Income Statement

(in millions EUR) 2002 2001 % Change

Sales 20,688 21,396 -3.3%

EBITDA 1,535 1,649 -6.9%

Depreciation (549) (561) -2.2%

Amortization of goodwill and intangibles (176) (158) +11.5%

Operating profit 807 921 -12.4%

(in millions EUR) 2002 2001 % Change

Sales 20,688 21,396 -3.3%

EBITDA 1,535 1,649 -6.9%

Depreciation (549) (561) -2.2%

Amortization of goodwill and intangibles (176) (158) +11.5%

Operating profit 807 921 -12.4%

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Income Statement

(in millions EUR) 2002 2001 % Change

Operating profit 807 921 -12.4%

Financial expense (455) (464) -2.0%

Exceptional expense (12) (96) -85.6%

Income taxes (160) (192) -16.8%

Tax rate 47.0% 53.2% -

Minority interests (2) (19) -91.8%

Reported earnings 178 149 +19.3%

Cash earnings 336 339 -0.8%

(in millions EUR) 2002 2001 % Change

Operating profit 807 921 -12.4%

Financial expense (455) (464) -2.0%

Exceptional expense (12) (96) -85.6%

Income taxes (160) (192) -16.8%

Tax rate 47.0% 53.2% -

Minority interests (2) (19) -91.8%

Reported earnings 178 149 +19.3%

Cash earnings 336 339 -0.8%

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(in EUR) 2002 2001 % Change

Reported earnings 1.94 1.88 +3.0%

Cash earnings 3.65 4.26 -14.4%

Average number of shares 92,068 79,494 +15.8%(000)

Gross dividend 0.88 1.44 -38.9%Net dividend 0.66 1.08 -38.9%

(in EUR) 2002 2001 % Change

Reported earnings 1.94 1.88 +3.0%

Cash earnings 3.65 4.26 -14.4%

Average number of shares 92,068 79,494 +15.8%(000)

Gross dividend 0.88 1.44 -38.9%Net dividend 0.66 1.08 -38.9%

Per Share Information

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Results at Actual and at Identical Exchange Rates

Actual Identical Exchange Rates Exchange Rates

Sales -3.3% +0.7%

EBITDA -6.9% -2.5%

Operating profit -12.4% -7.9%

Reported earnings +19.3% +27.8%

Cash earnings -0.8% +4.0%

Reported earnings per share +3.0% +10.3%

Cash earnings per share -14.4% -10.2%

Actual Identical Exchange Rates Exchange Rates

Sales -3.3% +0.7%

EBITDA -6.9% -2.5%

Operating profit -12.4% -7.9%

Reported earnings +19.3% +27.8%

Cash earnings -0.8% +4.0%

Reported earnings per share +3.0% +10.3%

Cash earnings per share -14.4% -10.2%

Dollar weakening by 5.3% on average in 2002(1 EUR = 0.9456 USD in 2002 compared to 1 EUR = 0.8956 USD in 2001)

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Final results 2002: cash EPS -10.2% at identical exchange rates instead of expected -20% to -25% due to: Better than expected sales at Food Lion and in

Belgium in December 2002 Higher than expected EBITDA margins at Food Lion

and in Belgium due to aggressive cost control Tax rate lower because of:

- Improved pre-tax income versus non-deductible amortization of goodwill and intangibles- Adjustment to deferred tax liability to reflect Belgian tax rate reduction in 2003

Better than Expected Results

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Highlights Cash Flow Statement

(in millions EUR) 2002 2001

Net earnings 179.8 168.8

Adjustments for non-cash items 1,291.0 1,302.5

Working capital improvement 43.4 70.1

Net cash provided by 1,036.8 1,208.5operating activities

Capital expenditures (634.9) (553.6)

Purchase of shares in consolidated companies (13.3) (69.9)

Dividends (135.8) (144.4)

Free cash flow 300.2 455.8

(in millions EUR) 2002 2001

Net earnings 179.8 168.8

Adjustments for non-cash items 1,291.0 1,302.5

Working capital improvement 43.4 70.1

Net cash provided by 1,036.8 1,208.5operating activities

Capital expenditures (634.9) (553.6)

Purchase of shares in consolidated companies (13.3) (69.9)

Dividends (135.8) (144.4)

Free cash flow 300.2 455.8

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Working Capital Improvementsat Delhaize America

2002 2001 2000 1999 1998

Trade receivables days 3.5 4.9 5.2 7.0 7.1

Inventory days on hand 44.9 42.8 47.5 57.8 58.2

Trade payable days 24.9 22.8 25.8 25.5 25.5

(in millions of USD)

Working capital change 55.7 35.8 93.3 (41.0) (130.7)

2002 2001 2000 1999 1998

Trade receivables days 3.5 4.9 5.2 7.0 7.1

Inventory days on hand 44.9 42.8 47.5 57.8 58.2

Trade payable days 24.9 22.8 25.8 25.5 25.5

(in millions of USD)

Working capital change 55.7 35.8 93.3 (41.0) (130.7)

Receivables + inventory + accounts payables

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Uses of Free Cash Flow

(in millions EUR)

InflowFree cash flow 300.2

OutflowRepayment short-term loans (85.2)Repayment long-term loans (120.2)Buyback own shares, net of stock options exercise (8.5)Cash movement before translation 86.3Foreign exchange translation difference (53.3) (on cash portion)

Net increase of cash - balance sheet 33.0

(205.4)

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Net Debt Delhaize Group

In millions of EUR

2,000

3,000

4,000

5,000

4,775.9

3,897.8

+45.3 +4.7(636.4)

(205.4)

(86.3)

OtherCapitalleases

Netexchange

differences

Netrepayment

of debt

Cash movement

Net debt31/12/02

Net debt31/12/01

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109%

127%

160%

71%

51%

1998 1999 2000 2001 2002

Net Debt to Equity Ratio

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Debt Maturity Profile Delhaize Group

0

200

400

600

800

1,000

1,200

(in

millio

ns o

f E

UR

)

Delhaize America

Other

28 14

753

157 189

1,049

117

815

491

Revolving 5.2% 7.4% 7.0% 7.5% 5.3% 8.1% 8.0% 9.0% Credit 2003 2004 2005 2006 2007 2008-2010 2011 2012-2030 2031

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Outlook 2003

(in millions of EUR)EUR 1 =

USD 0.94EUR 1 =

USD 1.09

Sales 21,000-21,300 18,800-19,100

Reported earnings 150-185 130-150

Earnings before amortizationof goodwill and intangibles andexceptional items 320-350 285-305

(in millions of EUR)EUR 1 =

USD 0.94EUR 1 =

USD 1.09

Sales 21,000-21,300 18,800-19,100

Reported earnings 150-185 130-150

Earnings before amortizationof goodwill and intangibles andexceptional items 320-350 285-305

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Outlook 2003

97 new stores (+ 3.9%) to 2,617 stores

Comparable store sales growth of Delhaize America:

between -2.0% and flat

USD 1 billion free cash flow Delhaize America (2001-2003)

Net debt to equity ratio of approximately 100% at the end of

2003

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Outlook 2003

(in millions of EUR) 2003 2002

Capital expenditures 650 635

Depreciation and amortization 740-750 725

Financial charges ± 455 455

Average tax rate on earnings before non-deductible expense ± 38% * 36.8%

(in millions of EUR) 2003 2002

Capital expenditures 650 635

Depreciation and amortization 740-750 725

Financial charges ± 455 455

Average tax rate on earnings before non-deductible expense ± 38% * 36.8%

(At identical exchange rates)

Outlook 2003

(in millions of EUR) 2003 2002

Capital expenditures 650 635

Depreciation and amortization 740-750 725

Financial charges ± 455 455

Average tax rate on earnings before non-deductible expense ± 38% * 36.8%

(in millions of EUR) 2003 2002

Capital expenditures 650 635

Depreciation and amortization 740-750 725

Financial charges ± 455 455

Average tax rate on earnings before non-deductible expense ± 38% * 36.8%

(At identical exchange rates)

* Non-deductible expense is estimated to be approximately EUR 90 million in 2003

Accomplishments in 2002 and Priorities of Delhaize Group for 2003

Pierre-Olivier Beckers, CEO of Delhaize Group

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Accomplishments in a Challenging Year

Strong sales at Delhaize Belgium and Alfa-Beta Confirmation of success of Hannaford Aggressive cost management in the second half of 2002 Reorientation of Food Lion to a sales focus Continued strong free cash generation (7.4% EBITDA

margin) and reduction of net debt Fast growing regional and global cooperation Further strengthening corporate governance and

continued transparent communication

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Four Key Priorities in 2003

1. Build sustainable sales growth

2. Immediate reduction of structural costs

3. Continued focus on cash flow and deleveraging balance sheet

4. Regional and global cooperation

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Continued Strengthening of Concepts to Accelerate Sales Growth

Food Lion: sales building initiatives, reinforced priceleadership and continued expansion

Hannaford: continuation of the Festival strategy Kash n' Karry: reinforced focus on meat and produce Delhaize Belgium: ongoing differentiation by continued

renewal of our store network and further reinforcement of the fresh products offering

Alfa-Beta - Trofo & Delvita: completing Trofo integration and expansion

Asia: network strengthening

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Reducing Cost Base to Reinforce Competitive Position and Protect Profitability

Store closings in the U.S. and streamlining of the Food

Lion support structure

New commercial policy at Delhaize Belgium resulting in

lower operations and marketing costs

Major savings of USD 40 million in purchase of indirect

goods and supplies at Food Lion

Integration Trofo in Alfa-Beta

Merging Czech and Slovak support services at Delvita

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Reducing Cost Base to Reinforce Competitive Position and Protect Profitability

Supply chain optimization: evaluation project at Food

Lion and fully automated break pack facility at Delhaize

Belgium

Continued investment in information systems: new

inventory management system at Delhaize Belgium and

Food Lion

Regional and global synergies: buying, energy, supply

chain, benefits, retail practices, IT, organizational

development, risk management

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Deleveraging Balance Sheet Through Strong Free Cash Flow Generation

Significant free cash flow generation by Delhaize America of USD 667 million (2001-2002) through:

Strong EBITDA:USD 2.4 billion (2001-2002)

Working capital improvements of USD 91.5 million (2001-2002):

1999 2000 2001 2002Inventory turnover 6.5x 8.0x 8.2x 8.3xInventory days on hand 57.8 47.5 42.8 44.9

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Commitment to USD 1 Billion Free Cash Flow Target Delhaize America

(2001-2003)

Sales and EBITDA expansions

Working capital improvements

Capital spending controls

Dividend management

Portfolio management

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Regional and Global Cooperation

Simplified financial and management structure

Efficient corporate structure supporting banners

Rapidly increasing synergies on regional and global level

Exchange of best practices and knowledge

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Characteristics Delhaize Group

A focused organization One business: food retail Lean and aligned management team

A disciplined organization Immediate cost reductions Building sustainable sales growth Prudent in our approach

A profitable organization Leading local banners with strong market shares Ongoing high margins Strong free cash flow generation

Food Lion Strategy

Rick Anicetti, CEO of Food Lion, LLC

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Food Lion

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Challenges

• Depressed economic conditions in the Southeast of the U.S.– Higher unemployment rates in North and South Carolina – Significant military deployment from our major markets

• Competition– Most large supermarket operators and many regional and local chains

operate in the Southeast market– Competing with Wal-Mart Supercenters for almost 10 years– New non-traditional formats: dollar stores, limited assortment stores,

drugstores• Customer choices

– Food Lion serves approximately 10 million loyal customers each week, a stable number compared to 2001

– But transaction size and frequency have decreased in 2002 due to:• Economy• Competition

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Food Lion Strategy Addresses Consumer Expectations

Source: Food Marketing Institute (2002)

Clean, neat store

Friendly associates

Convenient locations

Store layout

Fast check-out

High-quality fruits and vegetables

High-quality meats

Low prices

On-sale items or special promotions

Store experience and atmosphere

Convenience

Quality and variety in fresh departments

Low price leadership

Consumer Expectations Food Lion Strategy

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Low Price Leadership

• Cost Efficient Operation– Cost reduction – USD 100 million in 2003

• Close 41 unprofitable stores • Revise store labor model to focus on high value

activities that are aligned with strategy• Eliminate non-value added activities throughout the

support structure– Reduction in workforce – 400 positions

• Consolidate fragmented activities and reduce redundancy

– Indirect purchasing project

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Low Price Leadership

• Cost Efficient Operation, continued– Additional opportunities

• Optimize supply chain processes and systems

• Introduce manufacturing techniques in labor intensive departments

• Continue U.S. and global synergy identification

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Low Price Leadership

• Delivering Price– Maintain strong consumer images related to price

leadership

– Leverage cost efficient operation to support investment in price position

– Continued refinement of zone pricing (rolled out in 2001-2002)

– Refine pricing strategy to deliver the appropriate balance between everyday shelf pricing and promotional activity

– Deliver consistent and dependable pricing message to customers

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Quality and Variety in Fresh Departments

• Capitalize on progress achieved to date– Produce sales distribution increased in 2002

• Optimize supply chain processes and systems– Product sourcing

– Quality assurance

– Variety

– Fresh chain management

– Store delivery frequency

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Locational Convenience through aDense Store Network

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Store Prototypes

• 45 new Food Lion stores in 2003• 150 potential additional new sites

in next three years

Current new store prototypes - 28,000 and 38,000 square feet

Modern convenient store

More focus on fresh offering

Increased services

Low breakeven point

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38,000 Sq. Ft. Prototype – Very Favorable Consumer Response

0%

10%

20%

30%

40%

50%

60%

70%

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90%

Shelves Well S

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Overall Satis

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Knowledgeable, Helpful E

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Reasonable Checkout Tim

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Lowest Total S

hopping Bill

Company

New Prototype

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Store Experience and Atmosphere

• Consistent execution across retail stores– Standard Practices

• Clean and well-kept store environment

• In-stock conditions

• Increase variety in fresh departments

• Effective store signage and messaging

• Prepare for peak customer traffic

• Fast, efficient check-out

• Friendly associates

• Available associates

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Mid/Long-Term Strategy

– Further develop an exciting and compelling shopping experience as defined by on-going consumer research

• Leverage and maintain strong price perception• Transform offering in fresh departments• Redefine customer service • Design and deliver distinguished convenience

– Raleigh Project• Leverage planned remodel activity to implement

these concepts

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Focused on Consumer Expectations to Support Continued Success and Growth

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Low Price Leadership

Fresh Products - Quality and Variety

Convenience

Store Experience and Atmosphere

Current Initiatives

Foc

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