Kroger : 2019 PDF Fact Book

Kroger At A Glance

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Pick up and Delivery available to 97% of Custom-ers

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Table of Contents

About Overview

Letter to Shareholders

Restock Kroger and Our Priorities Redefine Customer Expereince Partner for Customer Value Develop Talent

Live Our Purpose

Create Shareholder Value Company Financial Metrics Appendix

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ABOUT THE KROGERFact Book

This Fact Book provides certain financial and operating information about The Kroger Co. (Kroger®) and its consolidated subsidiaries. It is intended to provide general information about Kroger and therefore does not include the Company's consolidated financial statements and notes. On January 22, 2003, the SEC issued release No. 33-8176 that set forth new requirements relating to the disclosure of non-GAAP financial measures, as defined in the release. The release allows for presentation of certain non-GAAP financial measures provided that the measures are reconciled to the most directly comparable GAAP financial measure. Any non-GAAP financial measure discussed in this Fact Book complies with this requirement. More detailed financial information can be found in Kroger's filings with the SEC.

This Fact Book contains ''forward-looking statements'' within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995 about future performance of Kroger, including with respect to Kroger's ability to achieve short-and long-term sales and earnings goals, sustainable long-term shareholder value, ability to execute on our growth strategy and business plan, ability to execute on Restock Kroger, ability to increase dividends, ability to grow market share, and ability to develop new brands and implement new technologies, among other statements. These statements are based on management's assumptions and beliefs in light of the information currently available to it. These statements are indicatedby words such as ''achieve,'' ''believe,'' ''committed,'' ''continue,'' ''deliver,'' ''effect,'' ''future,'' ''growth,'' ''imperative,'' ''may, ''plan,'' ''reinventing;'' ''result,'' ''strategy,'' ''strong,'' ''sustainable,'' ''transform,'' ''trend,'' ''vision,'' and ''will,'' as well as similar words or phrases. These statements are subject to known and unknown risks, uncertainties and other important factors that could cause actual results and outcomes to differ materially from those contained in the forward-looking statements. These include the specific risk factors identified in ''Risk Factors'' and ''Outlook'' in Kroger's Annual Report on Form 10-K and any subsequent filings with the Securities and Exchange Commission.

Our ability to achieve sales, earnings, incremental FIFO operating profit, and free cash flow goals may be affected by: labor negotiations or disputes; changes in the types and numbers of businesses that compete with us; pricing and promotional activities of existing and new competitors, including non-traditional competitors, and the aggressiveness of that competition; Our response to these actions; the state of the economy, including interest rates, the inflationary and deflationary trends in certain commodities, changes in tariffs, and the unemployment rate; the effect that fuel costs have on consumer spending; volatility of fuel margins; changes in government-funded benefit programs; manufacturing commodity costs; diesel fuel costs related to our logistics operations; trends in consumer spending; the extent to which our customers exercise caution in their purchasing in response to economic conditions; the uncertain pace ofeconomic growth; changes in inflation or deflation in product and operating costs; stock repurchases; our ability to retain pharmacy sales from third party payors; consolidation in the healthcare industry, including pharmacy benefit managers; our ability to negotiate modifications to multi-employer pension plans; natural disasters or adverse weather conditions; the potential costs and risks associated with potential cyber-attacks or data security breaches; the success of our future growth plans; the ability to execute on Restock Kroger; and the successful integration of merged companies and new partnerships. Our ability to achieve these goals may also be affected by our ability to manage the factors identified above. Our ability to execute our financial strategy may be affected by our ability to generate cash flow.

Kroger believes that the information contained in this Fact Book is correct in all material respects as of May 2020 or such earlier date as indicated. However, such information is subject to change. Unless otherwise noted, reference to "years" is to Kroger's fiscal years.

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