Analysts’ Meeting 2002 Annual Results Delhaize 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 2002 Craig Owens, CFO of Delhaize Group Accomplishments in 2002 and Priorities of Delhaize Group for 2003 Pierre-Olivier Beckers, CEO of Delhaize Group Strategic Sales and Cost Initiatives at Food Lion Rick 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

6 Delhaize Group 2002 Sales * Organic sales growth of + 2.1%

7 EBITDA Margin

8 Income Statement

9

10 Per Share Information

11 Results at Actual and at Identical Exchange Rates Dollar weakening by 5.3% on average in 2002 (1 EUR = USD in 2002 compared to 1 EUR = USD in 2001)

12 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

13 Highlights Cash Flow Statement

14 Working Capital Improvements at Delhaize America Receivables + inventory + accounts payables

15 Uses of Free Cash Flow (in millions EUR) Inflow Free cash flow300.2 Outflow Repayment short-term loans(85.2) Repayment long-term loans(120.2) Buyback own shares, net of stock options exercise (8.5) Cash movement before translation86.3 Foreign exchange translation difference(53.3) (on cash portion) Net increase of cash - balance sheet33.0 (205.4)

16 Net Debt Delhaize Group In millions of EUR 4, , (636.4) (205.4) (86.3) Other Capital leases Net exchange differences Net repayment of debt Cash movement Net debt 31/12/02 Net debt 31/12/01

17 Net Debt to Equity Ratio

18 Debt Maturity Profile Delhaize Group Revolving5.2%7.4%7.0%7.5%5.3%8.1%8.0%9.0% Credit

19 Outlook 2003

20 Outlook 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 ( ) Net debt to equity ratio of approximately 100% at the end of 2003

21 Outlook 2003 (At identical exchange rates) Outlook 2003 (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

23 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

24 Four Key Priorities in 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

25 Continued Strengthening of Concepts to Accelerate Sales Growth  Food Lion: sales building initiatives, reinforced price leadership 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

26 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

27 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

28 Deleveraging Balance Sheet Through Strong Free Cash Flow Generation Significant free cash flow generation by Delhaize America of USD 667 million ( ) through:  Strong EBITDA: USD 2.4 billion ( )  Working capital improvements of USD 91.5 million ( ):

29 Commitment to USD 1 Billion Free Cash Flow Target Delhaize America ( )  Sales and EBITDA expansions  Working capital improvements  Capital spending controls  Dividend management  Portfolio management

30 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

31 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

33 Food Lion

34 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

35 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 ExpectationsFood Lion Strategy

36 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

37 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

38 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 ) –Refine pricing strategy to deliver the appropriate balance between everyday shelf pricing and promotional activity –Deliver consistent and dependable pricing message to customers

39 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

40 Locational Convenience through a Dense Store Network

41 Store Prototypes 45 new Food Lion stores in 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

42 38,000 Sq. Ft. Prototype – Very Favorable Consumer Response Company New Prototype

43 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

44 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

45 Focused on Consumer Expectations to Support Continued Success and Growth Focused CostReductions Supply Chain StandardPractices Variety andSourcing Fresh ChainManagement ManufacturingTechniques New StorePrototypes Raleigh Project Low Price Leadership Fresh Products - Quality and Variety Convenience Store Experience and Atmosphere Current Initiatives Focused Strategy

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