Market Capitalization $11.8 Billion. Weekly Price: (US$) SMA (50) SMA (100) 1 Year 2 Years

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1 BUY HOLD SELL A+ A A- B+ B B- C+ C C- D+ D D- E+ E E- F Annual Dividend Rate BUSINESS DESCRIPTION Etablissements Delhaize Freres et Cie `Le Lion' (Groupe Delhaize) Societe Anonyme, together with its subsidiaries, operates food supermarkets. It also operates other store formats, including proximity, cash and carry, and specialty stores. STOCK PERFORMANCE (%) 3 Mo. 1 Yr. 3 Yr (Ann) Price Change GROWTH (%) Last Qtr 12 Mo. 3 Yr CAGR Revenues Net Income , EPS RETURN ON EQUITY (%) Ind Avg S&P 500 Q Q Q P/E COMPARISON BUY Sector: Consumer Non-Discretionary Sub-Industry: Food Retail Source: S&P BUY RATING SINCE 12/23/2014 TARGET PRICE $33.24 Weekly Price: (US$) SMA (50) SMA (100) 1 Year 2 Years Rating History HOLD Volume in Millions BUY COMPUSTAT for Price and Volume, TheStreet Ratings, Inc. for Rating History TARGET PRICE $33.24 RECOMMENDATION We rate () a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any nesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel its strengths outweigh the fact that the company shows low profit margins EPS ANALYSIS¹ ($) Q Q Q Q Q Ind Avg Q Q NA = not available NM = not meaningful Q Q S&P Compustat fiscal year convention is used for all fundamental data items. HIGHLIGHTS The revenue growth came in higher than the industry average of 1.4%. Since the same quarter one year prior, revenues rose by 12.1%. Growth in the company's revenue appears to have helped boost the earnings per share. reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, increased its bottom line by earning $0.96 versus $0.55 in the prior year. This year, the market expects an improvement in earnings ($3.71 versus $0.96). The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Food & Staples Retailing industry. The net income increased by 312.8% when compared to the same quarter one year prior, rising from $30.08 million to $ million. Powered by its earnings growth of % and other important driving factors, this stock has surged by 30.92% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels. The current debt-to-equity ratio, 0.40, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a debt-to-equity ratio, its quick ratio of 0.71 is somewhat and could be cause for future problems. Report Date: PAGE 1

2 PEER GROUP ANALYSIS REVENUE GROWTH AND EBITDA MARGIN* Revenue Growth (TTM) -10% 25% SFS UNFAVORABLE 1% EBITDA Margin (TTM) VLGEA KR WMK SVU IMKTA FAVORABLE NGVC SFM WFM CASY 10% Companies with higher EBITDA margins and revenue growth rates are outperforming companies with lower EBITDA margins and revenue growth rates. Companies for this scatter plot have a market capitalization between $298.2 Million and $35.4 Billion. Companies with NA or NM values do not appear. *EBITDA Earnings Before Interest, Taxes, Depreciation and Amortization. REVENUE GROWTH AND EARNINGS YIELD Revenue Growth (TTM) -10% 25% SFS UNFAVORABLE 2% SFM NGVC WFM VLGEA WMK KR CASY Earnings Yield (TTM) IMKTA FAVORABLE SVU 14% Companies that exhibit both a high earnings yield and high revenue growth are generally more attractive than companies with low revenue growth and low earnings yield. Companies for this scatter plot have revenue growth rates between -8.3% and 20.2%. Companies with NA or NM values do not appear. INDUSTRY ANALYSIS Food and staples retailing is the second largest segment of the consumer staples industry and includes wholesale food distribution, grocery retaining, specialty food stores, and drugstores. Major players are Wal-Mart Stores (WMT), CVS Health (CVS), Walgreens Boots Alliance (WBA), Sysco (SYY), Kroger (KR), Supervalu (SVU), Andersons (ANDE), and Whole Foods Market (WFM), all of which possess unique operational models. The industry is defensive and characterized by stable growth. Food distributors maintain a specific product mix. Grocery stores are usually locally owned and have a fixed client base. They record average annual revenue of $14 million. Supermarkets rely on a distribution network to survive as they do not have enough space to store goods. Specialty stores use merchandising to attract foot traffic. Drugstores focus on prescription customers and sell over-the-counter (OTC) drugs, health and beauty aids, greeting cards, photo-finishing services, and general merchandise. Demand for basic products remains stable regardless of economic conditions. Commodity pricing pressures are being offset by corporate restructurings, which are helping to maintain margins. During periods of growth, the industry tends to outperform. The Food and Drug Administration (FDA) is the regulatory body for food manufacturers and drug retailers. Regulation begins at the initial phases of development and continues through the manufacturing phase and down the supply chain. Law makers are considering legislation to prohibit Canadian pharmacies from selling prescription drugs to US mail-order customers in order to help domestic pharmacies. Prescription drugs account for approximately 10% of the total US medical bill. Also, Medicare favors generic drugs and in doing so influences industry participants. In the past recession, consumer preference shifted towards cost-effective choices such as discount groceries. Premium organic options benefit from the improved economic climate. Lifestyle drugs have been hit hardest. However, baby boomers are now propelling growth in the drugstore segment, which is expected to expand within the consumer staples industry. Increased pharmacy traffic is not necessarily a profit driver, but it triggers impulse purchase of general merchandise and services. The industry s dependable revenue and low beta are commendable during an economic recession, but two factors will curtail long-run performance, rising raw material costs and high valuations. Food and staples retailing remains a stable business, but demand for food products is limited by the small annual US population growth. PEER GROUP: Food & Staples Retailing Recent Market Price/ Net Sales Net Income Ticker Company Name Price ($) Cap ($M) Earnings TTM ($M) TTM ($M) DELHAIZE GROUP - ETS DLHZ F , , IMKTA INGLES MARKETS INC , CASY CASEYS GENERAL STORES INC , , SFM SPROUTS FARMERS MARKET , , KR KROGER CO , , , NGVC NATURAL GROCERS VITAMIN CTG VLGEA VILLAGE SUPER MARKET , WMK WEIS MARKETS INC , , SVU SUPERVALU INC , , SFS SMART & FINAL STORES INC , , WFM WHOLE FOODS MARKET INC , , The peer group comparison is based on Major Food Retail companies of comparable size. Report Date: PAGE 2

3 Annual Dividend Rate COMPANY DESCRIPTION Etablissements Delhaize Freres et Cie `Le Lion' (Groupe Delhaize) Societe Anonyme, together with its subsidiaries, operates food supermarkets. It also operates other store formats, including proximity, cash and carry, and specialty stores. In addition, the company sells its products to affiliated stores that are operated by independent third parties, as well as offers food, care products and services, and accessories for pets. It operates a network of 3,512 stores in Belgium, Luxembourg, the United States, Greece, Romania, Serbia, and Indonesia. The company was founded in 1867 and is based in Brussels, Belgium. Rue Osseghemstraat 53 Brussels 1080 BEL Phone: Fax: Employees: STOCK-AT-A-GLANCE Below is a summary of the major fundamental and technical factors we consider when determining our overall recommendation of shares. It is provided in order to give you a deeper understanding of our rating methodology as well as to paint a more complete picture of a stock's strengths and nesses. It is important to note, however, that these factors only tell part of the story. To gain an even more comprehensive understanding of our stance on the stock, these factors must be assessed in combination with the stock s valuation. Please refer to our Valuation section on page 5 for further information. FACTOR SCORE Growth 3.0 out of 5 stars Measures the growth of both the company's income statement and cash flow. On this factor, has a growth score better than 50% of the stocks we rate. Total Return 4.5 out of 5 stars Measures the historical price movement of the stock. The stock performance of this company has beaten 80% of the companies we cover. Efficiency 3.5 out of 5 stars Measures the strength and historic growth of a company's return on invested capital. The company has generated more income per dollar of capital than 60% of the companies we review. Price volatility 5.0 out of 5 stars Measures the volatility of the company's stock price historically. The stock is less volatile than 90% of the stocks we monitor. Solvency 3.0 out of 5 stars Measures the solvency of the company based on several ratios. The company is more solvent than 50% of the companies we analyze. Income 3.5 out of 5 stars Measures dividend yield and payouts to shareholders. The company's dividend is higher than 60% of the companies we track. THESTREET RATINGS RESEARCH METHODOLOGY TheStreet Ratings' stock model projects a stock's total return potential over a 12-month period including both price appreciation and dividends. Our Buy, Hold or Sell ratings designate how we expect these stocks to perform against a general benchmark of the equities market and interest rates. While our model is quantitative, it utilizes both subjective and objective elements. For instance, subjective elements include expected equities market returns, future interest rates, implied industry outlook and forecasted company earnings. Objective elements include volatility of past operating revenues, financial strength, and company cash flows. Our model gauges the relationship between risk and reward in several ways, including: the pricing drawdown as compared to potential profit volatility, i.e.how much one is willing to risk in order to earn profits; the level of acceptable volatility for highly performing stocks; the current valuation as compared to projected earnings growth; and the financial strength of the underlying company as compared to its stock's valuation as compared to projected earnings growth; and the financial strength of the underlying company as compared to its stock's performance. These and many more derived observations are then combined, ranked, weighted, and scenario-tested to create a more complete analysis. The result is a systematic and disciplined method of selecting stocks. Report Date: PAGE 3

4 Consensus EPS Estimates² ($) IBES consensus estimates are provided by Thomson Financial FINANCIAL ANALYSIS 's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. has liquidity. Currently, the Quick Ratio is 0.71 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year. NA NA 3.71 E 2016(E) 3.96 E 2017(E) During the same period, stockholders' equity ("net worth") has increased by 7.76% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future. INCOME STATEMENT Net Sales ($mil) 7, , EBITDA ($mil) EBIT ($mil) Net Income ($mil) STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit BALANCE SHEET Cash & Equiv. ($mil) 1, , Total Assets ($mil) 14, , Total Debt ($mil) 2, , Equity ($mil) 6, , PROFITABILITY Gross Profit Margin 27.55% 27.56% EBITDA Margin 6.00% 5.35% Operating Margin 3.25% 2.51% Sales Turnover Return on Assets 3.46% 0.20% Return on Equity 6.95% 2.13% DEBT Current Ratio Debt/Capital Interest Expense Interest Coverage SHARE DATA Shares outstanding (mil) Div / share EPS Book value / share Institutional Own % NA NA Avg Daily Volume 137, ,504 2 Sum of quarterly figures may not match annual estimates due to use of median consensus estimates. Report Date: PAGE 4

5 RATINGS HISTORY Our rating for has not changed since 12/23/2014. As of 7/14/2016, the stock was trading at a price of which is.4% below its 52-week high of $28.35 and 35.1% above its 52-week low of $ Year Chart HOLD: $16.82 BUY: $ $30 $25 $20 MOST RECENT RATINGS CHANGES Date Price Action From To 12/23/14 $18.50 Upgrade Hold Buy 7/14/14 $16.82 No Change Hold Hold Price reflects the closing price as of the date listed, if available RATINGS DEFINITIONS & DISTRIBUTION OF THESTREET RATINGS (as of 7/14/2016) 38.50% Buy - We believe that this stock has the opportunity to appreciate and produce a total return of more than 10% over the next 12 months % Hold - We do not believe this stock offers conclusive evidence to warrant the purchase or sale of shares at this time and that its likelihood of positive total return is roughly in balance with the risk of loss % Sell - We believe that this stock is likely to decline by more than 10% over the next 12 months, with the risk involved too great to compensate for any possible returns. TheStreet Ratings 14 Wall Street, 15th Floor New York, NY Research Contact: Sales Contact: VALUATION BUY. The current P/E ratio indicates a premium compared to an average of for the Food & Staples Retailing industry and a value on par with the S&P 500 average of To use another comparison, its price-to-book ratio of 1.68 indicates a discount versus the S&P 500 average of 2.80 and a significant discount versus the industry average of The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. Price/Earnings Peers Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation. is trading at a valuation on par with its peers. Price/Projected Earnings 7.13 Peers Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. is trading at a significant discount to its peers. Price/Book 1.68 Peers 3.82 Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. is trading at a significant discount to its peers. Price/Sales 0.43 Peers 0.57 Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. is trading at a discount to its industry on this measurement. DISCLAIMER: Price/CashFlow 9.34 Peers Discount. The P/CF ratio, a stock s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. is trading at a discount to its peers. Price to Earnings/Growth 0.09 Peers 2.18 Discount. The PEG ratio is the stock s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. trades at a significant discount to its peers. Earnings Growth lower higher Peers 1.45 Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. is expected to have an earnings growth rate that significantly exceeds its peers. Sales Growth lower higher 8.13 Peers 6.36 Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share. has a sales growth rate that significantly exceeds its peers. The opinions and information contained herein have been obtained or derived from sources believed to be reliable, but TheStreet Ratings cannot guarantee its accuracy and completeness, and that of the opinions based thereon. Data is provided via the COMPUSTAT Xpressfeed product from Standard &Poor's, a division of The McGraw-Hill Companies, Inc., as well as other third-party data providers. TheStreet Ratings is a division of TheStreet, Inc., which is a publisher. This research report contains opinions and is provided for informational purposes only. You should not rely solely upon the research herein for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained in this report constitutes, or is intended to constitute a recommendation by TheStreet Ratings of any particular security or trading strategy or a determination by TheStreet Ratings that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person. Your use of this report is governed by TheStreet, Inc.'s Terms of Use found at Report Date: PAGE 5