GlobeNewswire Inc | Dec 18, 2020 04:05PM EST

December 18, 2020

Zaandam, the Netherlands,December18, 2020 Ahold Delhaize announces today that its U.S. brand Stop & Shop,reached anagreementtoterminate its participation in theUnited Food & Commercial Workers(UFCW)Local 1500 PensionFund(the1500Plan),through a transactionthat the1500Planstrusteesdetermined to be in the best interests of the1500Plansparticipantsand beneficiaries.Theagreement improvesthesecurity ofpensionbenefits forassociatesas well asreduces financial risk forthe company.Thistransaction will not impactthepreviously issuedoutlook for 2020.This statement should not beinterpretedas an update toany component ofthepreviously issued2020 outlook, announced in the Q3 2020 earnings release.

Stop & Shopwillpay the1500Planwithdrawal liability of $225million(00E2184million), on a pre-tax basis,tofulfill Stop & Shops obligations for past service for associates and retirees in the1500Plan. In addition, Stop & Shop expects to pay$4.1 million(00E23.4 million)to the defined contribution plan to provide transition benefits to certain plan participants who are near retirement.Stop & Shopwill provideassociates who are members of the UFCW Local 1500future service retirement benefitsthroughanexisting defined contributionplan.Ongoing contributions to thisdefinedcontributionplanwill havenosignificantimpacttogroupfinancial results,astheywillreplace contributions that have beenin placefortheprevious plan.

On an after-tax basis, the withdrawal liability and contribution to the transition reservetotal approximately$173million (00E2141million).Thewithdrawal liability willbe satisfied by installment payments to the1500Planover the next three years. Ahold Delhaize will therefore recognize aliabilityinthese amounts, which will impact Q4IFRS results.Theliabilitywill beexcluded from underlyingresults andwill therefore not impact the previously issued underlying operating results outlook for 2020.In 2020,$112.5million(00E292million)is expected to be paid, which is50%of thesettlementobligation.The Groups full year 2020 free cash flow outlook,whichisexpected to beat least1.7billion,will notbe impacteddue tothe strong level of free cash flowalreadygeneratedin the year-to-date through Q3.

Cautionary notice

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Forward-looking statements are subject to risks, uncertainties and other factors that are difficult to predict and that may cause actual results ofKoninklijkeAhold Delhaize N.V. (the Company) to differ materially from future results expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the risk factors set forth in the Companys public filings and other disclosures. Forward-looking statements reflect the current views of the Companys management and assumptions based on information currently available to the Companys management. Forward-looking statements speak only as of the date they aremadeand the Company does not assume any obligation to update such statements, except as required by law.