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04-20-2021 Hazard Pay (9)
COVID-19 PROFITS & HAZARD PAY IN THE GROCERY INDUSTRY SARAH CHERIN, EXECUTIVE VICE-PRESIDENT UFCW LOCAL 21 STAY-AT-HOME ORDERS LEAD TO UNPRECEDENTED SPIKE IN SUPERMARKET SALES $ BILLIONS; SOURCE: USDA $900 $850 $800 $750 $700 $650 $600 $550 $500 $776 $814 $851 $797 so 2018 2019 2020 ■ Supermarkets ■ Restaurants COVID-19 BOOSTS SALES AT KROGER AND ALBERTSONS SOURCE: COMPANY FILINGS (4Q20 RESULTS NOT YET AVAILABLE FOR ALBERTSONS) 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 1.5% 1.5% 0.0% _ _ 1Q19 Same Store Sales 26.5% 19.0% 14.6% 13.8% 12.3% 10.9% � 10.6% 2.2% 2.4% 2.5% 2.7% 2.0% 1.8% on on .. 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 ■ Kroger ■ Albertsons COVID-19 SALES INCREASES LEAD TO WINDFALL PROFITS NET INCOME, IN $ MILLIONS; SOURCE: COMPANY FILINGS (ALBERTSONS DATA THROUGH 3RD QUARTER) $1, 200 $1, 000 $800 $600 $400 $200 $399 2019 Albertsons $994 2020 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $1, 659 Kew* Kroger $2,585 2020 FRONTLINE WORKERS VS SHAREHOLDERS: WHO'S ESSENTIAL? KROGER Kroger 2020 after-tax hazard pay & profit ($ in millions) $1,400.0 $1, 200.0 $1,000.0 $800.0 $ 600.0 $400.0 $200.0 Kroger 2020 after-tax hazard pay & share repurchases ($ in millions) $349 7 $1,324.0 ■ Hazard pay Profit ■ Hazard pay ■ Stock buybacks FRONTLINE WORKERS VS SHAREHOLDERS: WHO'S ESSENTIAL? ALBERTSONS Albertsons 2020 after-tax hazard pay & profit ($ in millions; through 3Q20) Albertsons 2020 after-tax hazard pay & share buybacks ($ in millions; through 3rd quarter) $2,000.0 $1,864.7 $1,800.0 $1, 600.0 $1,400.0 $1,200.0 $1,000.0 $800.0 $600.0 $400.0 $263.8 $200.0 Hazard pay Stock buybacks DESPITE COVID-19 COSTS &BILLIONS IN STOCK BUYBACKS SUPERMARKET CHAINS ARE FLUSH WITH CASH 1800.0 1600.0 1400.0 1200.0 1000.0 800.0 600.0 400.0 200.0 0.0 The Kroger Co.: Cash & Short Term Investments ($ in millions) f Feb-01-2020 Jan-30-2021 2000.0 1800.0 1600.0 1400.0 1200.0 1000.0 800.0 600.0 400.0 200.0 0.0 Albertsons Inc.: Cash & Short Term Investments ($ in millions) 71 Feb-29-2020 $1,847 Dec-05-2020 FREDmJ —consumer Prlce Index for All Urban Consumers: Food at Horne In U.S. city Average 255.0 252.5 250.0 0 247.5 O O� �y 245.0 cn x w 242.5 240.0 237.5 23 5.0 Jul2016 Jan 2017 Jul2017 Jan 2018 Ju12018 Jan 2019 Jul2019 Jan 2020 Ju12020 Jan 2021 Source; U.S. Bureau of Labor Statistics myf,redlglDcFO